"A lack of knowledge breeds risk" ~ A Trader's First Book on Commodities

Carley Garner, commodities analyst and  broker at DeCarley Trading, as well as the author of "A Trader's First Book on Commodities" and "Commodity Options" explains how margin call are triggered, what actions a trader can take, and  how traders can adjust risk and margin without adding money or liquidating positions.

Come and see how it might be possible to adjust the position delta through the purchase and sale of options in order to aleviate a margin call from your futures and options broker.

When: March 25th, 3:30 Central

What: Coping with Margin Calls educational webinar

Where: Virtual Class hosted by SFO Magazine and DeCarley Trading

How: Click here to register

Cost : FREE

Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/643422002

 

www.ATradersFirstBookonCommodities.com 

According to Warren Buffet, risk comes from not knowing what you are doing.  Unfortunately, I have had a front row seat to the carnage that can occur in misguided speculation.  Before you put your hard earned money on the line, join me on March 18th for a behind the scenes look at what really impacts a commodity trader's bottom line! 

Strategy is important, but much to their despair beginning commmodity traders often fail to do their homework when it comes to the basics.  For example, deciding which service level and futures brokerage firm will meet the needs of a particular trading style is just as important fas determining when to buy or sell a commodity.  Likewise, understanding contract specifications, market characteristics and the implications of commission can detrimental to a futures and options trader. 

This class is intended to provide attendees with the information needed to make the vital decisions that lead up to the actual buying or selling of commodities. Despite the lack of coverage of such topics in the resources available to futures and options traders, many of the behind the scenes decisions discussed in this class might be as imperative to being a successful trader as fundamental and technical analytical skills.

Take this class without ever leaving the office via our Virtual Classroom (Virtual NYIF). Accessible from any internet connected computer - regardless of where you are geographically. All you need is an internet connection, a browser and speakers or audio headphones!

A Look Back at Commodity Market Volatility

We hope to see you there!

*There is unlimited risk of loss in trading futues and options!

Helena Travaka of the Library Journal had this to say about Carley Garner's upcoming book, "A Trader's First Book on Commodities"

Click here to buy this book on Amazon.com!

Click here to buy this book on TradersLibrary.com!

The Wild Investor on "A Trader's First Book on Commodities"

In the financial world, commodities refer to some tangible product where the supply fluctuates based on usage and/or seasonal conditions.

If weather conditions look to damage the supply of oranges, then the price of orange future contracts will rise.

Popular commodities include that of grain, wheat, and other agriculture crops. Oil and metals are also other form of commodities. Commodities can be traded through future contracts.

To get a better understanding of how commodities trading started, take a quick look at this excerpt from A Trader’s First Book on Commodities.

…the grain supply would dwindle to create shortages. This annual cycle of extreme oversupplies and subsequent undersupplies created inefficient price discovery and led to hardships for both producers and consumers.

The feast-or-famine cycle created circumstances in which farmers were forced to sell their goods at a large discount when supplies were high, but consumers were required to pay a large premium during times of tight supplies. Luckily, a few of the grain traders put their heads and resources together to develop a solution…an organized exchange now known as the Chicago Board of Trade.

From CXO Advisory Blog on "ATrader's First Book on Commodities"

In her 2010 book A Trader's First Book on Commodities: An Introduction to The World's Fastest Growing Market, author Carley Garner hopes to convey "the realization that anything is possible in the commodity markets. Never say never because if you do, you will eventually be proven wrong. Additionally, the markets, and trading them, is an art not a science. Unfortunately, there are no black-and-white answers nor are there fool-proof strategies—but that does not mean that there aren't opportunities." Her observations on success factors are largely experience-based, in an effort to provide "readers with a candid account of the realities of trading rather than fill them with unrealistic expectations," noting that "...the average retail trader has consistently been a net loser in the world of options and futures trading" despite falling commissions and increasing availability/sophistication of automated trading systems. Somenotable ideas from the book are:

From the "Introduction" (Pages 13-14): "...there isn't a 'best tool,' only a best way to use the tool. The paramount approach to any trading tool, whether technical, seasonal, or fundamental, is to use it—or better yet, a combination of a few—to form an educated opinion in your expectations of market price. With their findings, traders should approach the market with a degree of humbleness and with realistic expectations."

From Chapter 1, "A Crash Course in Commodities" (Pages 29-31): "The easiest way to understand the spread between the bid and ask is by coming to peace with the fact that there are essentially two market prices at any given time. There is a price at which you can buy the contract (the ask) and one in which you can sell it (the bid). As a retail trader you will always be paying the higher price and selling the lower price... One of the biggest mistakes that I have witnessed beginning traders make is to ignore the repercussions of large bid/ask spreads. ...Many beginning traders mistakenly assume that the commission and fees charged to them will depend on the number of order tickets rather than the number of contracts, but this is not the case. ...Each round turn is accompanied with exchange fees, minimal NFA (National Futures Association) fees, and possible transaction fees charged by the clearing firm."