What inspired you to write Higher Probability Commodity Trading?
There is plenty of commodity trading literature available to traders, but few sources are written from a practical point of view. As a commodity broker, I’ve had a front row seat to the futures and options industry. I’ve seen firsthand the success and carnage that can be had by traders of all sizes, types, experience levels, and strategies. Through my relationships with other brokers, traders, and industry insiders I have amassed a unique set of experiences have learned some hard lessons-many directly. The goal of Higher Probability Commodity Trading, and any other book I’ve authored, is to pass my experience and knowledge on to readers. Ideally, this book will shorten the learning curve for beginning traders, and provide experienced traders with a brand new arsenal for speculation and risk management.
What skills and knowledge will readers walk away from this commodity trading book with?
Higher Probability Commodity Trading was written with the intention of creating an A-to-Z guide on all things commodities. The book covers commodity market analysis with a fresh perspective on old topics such as technical and fundamental analysis, it then delves into reading the COT report and judging market sentiment gauges. Higher Probability Commodity Trading also walks readers through trading strategy development, commodity portfolio allocation, unconventional risk management techniques, and even trading VIX futures.
If readers walk away with one general concept, I hope that its the realization that there is no black and white in trading. There isn’t a right or wrong way to trade, nor is there a magic formula that will give traders the answers. Successful trading is only possible through trial and error to find a market approach that best fits the personality of each individual trader. After all, if a commodity trading matches his strategy to his personality, it is likely the emotional turmoil will be mitigated and, thus, the odds of success improved.
Is this book for beginning traders, or experienced?
I strongly believe Higher Probability Commodity Trading will be enjoyed, and appreciated, by both beginning and aged traders. I strived to present the material, some of it on highly complex matters, in the simplest format possible -and I think I was successful!
What sets this futures trading book apart from others in the genre?
I’ll admit, there are a lot of books out there on trading futures and options. Some are great, others are simply a compilation of information that could be found on a simple Google search. However, my book Higher Probability Commodity Trading takes the ideas presented in many other publications and adds easy to follow advantages and disadvantages of each trading method and analysis technique. Also, rather than regurgitating most of the available technical oscillators I wanted to point out many of the technical analysis techniques I perform on a daily basis for my newsletter followers, which is often used by Jim Cramer’s Mad Money on CNBC!
How long have you been a commodity broker?
I’ve been a licensed and registered commodity broker since 2004. During my time in the industry, I’d like to believe that I’ve “seen it all” in the futures and options markets. However, just as that through crosses my mind something else comes along to prove me wrong.
What is the biggest mistake commodity traders make?
Without a doubt, the biggest misstate traders make is to overleverage themselves. The commodity markets themselves offer traders massive leverage in their speculation but too many traders fail to recognize the simple fact that they don’t have to use the leverage. By overfunding an account (putting more margin on deposit than the minimum margin requirement), a trader is dramatically increasing the odds of success. The extra funding not only provides a cushion against a margin call, but it provides the trader with greater room for error. I don’t know about you, but I need plenty of that.
How would someone go about investing in the commodity markets?
There is a big difference between trading commodities, and investing in them. Traders speculate on the price of commodities in either direction, long or short. It is a stretch to refer to that kind of aggressive speculation as an investment. Yet, those looking to bottom fish the commodity markets which happen to be trolling multi-year lows, on relatively mitigated leverage, could argue they are “investing in commodities.” Regardless of what type of commodity market participant you wish to be, opening an account is quick and easy. Simply complete a brokerage application, which is generally electronic and takes a mere 10 to 15 minutes to complete. My brokerage service at www.DeCarleyTrading.com offers commodity trading services ranging from broker assisted to discount online trading.