How to Make Money in Commodities
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152
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futures get away from you. The future is now.
Somewhere, in some commodity, a price pattern is forming now
that conforms to our model and offers you very handsome rewards.
Of
course, there is far more to be said about futures trading
and speculation than has thus far been covered. In your reading,
in examining the charts, and in actually playing the futures
markets, many more questions arise than this book could address.
What does one do if the markets turn against a
position? Exactly how does the successful
speculator calculate the placement of stop-loss orders? How
important is price forecasting,
as
opposed to just playing the price chart? Are there other recurrent
chart formations that can be traded methodically and profitably?
Do cash prices determine futures prices, or do futures prices
determine cash
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prices? What are the various kinds of orders
I can use to ensure accurate execution of my trade? How quickly
should the losing trader exit from a bad position? Where can
the speculator find out about the supply and demand situation
for a particular commodity? What are the odds that a particular
commodity will rise, or fall, in prices during the summer as
opposed to the spring? Is it best to trade one or two commodities?
Ten? Thirty? Should a broker be allowed to trade the account
at his or her own discretion? Are some commodities consistently
more volatile than others? What difference does the amount
of volume or open interest make to the success of a trade?
How much should I be paying in commissions? How much should
I have in liquid capital and net assets before I start trading
commodity futures?
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SUCCESSFUL COMMODITY FUTURES
TRADING IS A SKILL THAT LASTS A LIFETIME.
155
These are just some of the hundreds of questions
I have been asked during my years as a commodity trader and
advisor. They occur to everyone entering the field of futures
speculation. This book, however, was not meant to be exhaustive:
it is only an introduction to futures trading and a handbook
for one method to successfully make a fortune in commodities.
I have written a number of other books, and thousands of pages
of newsletters, in answer to questions like those above. These
materials cover everything from the ancient history of futures
trading up through today's most sophisticated systems for futures
speculation. Those of you who want to continue your investigations
of futures trading may be interested in:
*
* *The Dow Jones-Irwin Guide To Commodities
Trading. (New,
revised edition). A nationwide financial best-seller, the
Guide is a complete, exhaustive and thorough presentation of all
important aspects of the futures business. Its simple, clear
explanations make it an ideal introductory text, while its
philosophy of trading and system of price analysis are of great
value to the most experienced of traders. It's coverage includes
the basic mechanics of trading, the choice of a brokerage firm,
the economics of both cash and futures pricing, the individual
fundamentals for all the major commodities, the construction
of a trading plan and the management of the individual commodity
account.
156
*
* *The Commodity
Trading Manual. Praised
by thousands as the single most valuable book in the business,
the Manual provides detailed instructions in 7 different trading
methods that are proven winners. Plain English and common sense
spell out a step-by-step program for developing a rational,
profitable trading plan. Learn what records to keep, how to
figure the odds, how to exit and enter with the least risk,
how to maximize profits and cut losses. A priceless aid for
the serious commodity trader.
*
* *"Bruce Gould On Commodities." Since
1976, "Bruce
Gould On Commodities" has provided subscribers world?wide
with informed commentary on current markets and trading strategies.
This unique, bi-weekly newsletter combines a review of major
markets with a continuing series of articles on the principles,
systems, theories and practices of commodity futures trading.
(Back issues are available.)
*
* *"Bruce
Gould Daily." The ultimate
service for the commodity futures speculator. Each and every
day after
the close of the futures exchanges, specific position recommendations
are tape-recorded and made available to subscribers through
a telephone "hot-line." Recommendations include general
trends, which markets to play long and which to play short,
and exact stop-order and stop-loss points for those commodities
considered the best bets.
157
For more information, simply return one of the postcards provided
at the back of this book. Or write to me personally: Bruce
Gould, P.O. Box 16, Seattle, WA 98111.
I have dedicated my career as a commodity trading advisor
to one foremost goal: to give the average person a good chance
to make substantial profits in futures trading, and I believe
I have succeeded. Good luck with your trading, and if I can
be of any help to you personally, don't hesitate to write.
Respectfully submitted,
Bruce Grant Gould
158
APPENDIX I:
ESTIMATED VALUE OF COMMODITIES TRADED
159
ESTIMATED "VALUE" OF COMMODITIES TRADED 1960 THROUGH 1980
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* Prior to 1972 figures are based on an average of
the value of commodities traded and reported on a fiscal basis.
** Estimated
Source: Futures Industry Association
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APPENDIX II:
VOLUME OF TRADING IN FUTURES
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