commodities for newbies

Discussion in 'Educational Resources' started by radolym, Apr 26, 2006.

  1. I just remembered, there is alot of good free info at tradingnaked.com, yes it really is a website.

    I can't stress enough being able to learn from someone, be part of a quality chat room, or find a mentor. You can search on good chat rooms, there are some good posts.

    I have been at this full time for almost a year, and I would have quit last fall had I not found a mentor. If you understand TA it works well for futures. Some people like funnymentals, as I call them, but most of what you can get is old news and discounted, IMO, by the time you receive it. Just remember do your math and understand your risks you are trading with leverage that can really help or hurt.


    Dan
     
    #11     Apr 26, 2006
  2. Joe Ross is a moron, -ooO-(GoldTrade. I listened to part of his webinar on the cbot.com, which supposedly has no useful information according to you, and he could barely make out a sentence or explain why his crappy chart patterns will make you any money.

    The exchange websites are very useful if you plan on trading they have all the info on how the contracts are traded(electronic/ open outcry), the hours traded, tick sizes, delivery specifications, how much fees are, limit prices, margin changes, last trading days, new exchange developments etc. Apparently you think a beginner is should obtain all this information through magic.
    The person who started the thread asked for the basics of how commodity markets work (margin accounts, what a tick is, contango, backwardization, etc). None of these basic things are in Jesse Livermore's book.

    How do you expect him to learn how markets are arbrtaged between spot and future price? What about how hedgers work, all this needs to be learned to fully understand the way hard commodity markets function. Or, I guess you can just learn the Joe Ross hook and forget everything else.
     
    #12     Apr 26, 2006
  3. Surdo

    Surdo

    Joe Ross has no clue!
     
    #13     Apr 26, 2006
  4. Commodities for newbie’s
    What’s that Johnny?
    Are you saying that you found something useful on the exchange site?

    My point is not that the information is not there. It’s just that it is not designed for traders, newbie’s, or anyone else that has not already sat through four years of MBA boloney. Those people were never beginner traders. They do not have a clue about what traders need to know to stay around long enough for those exchange sites to have any value. There is a built in conflict of interest. If you work for the exchange or the groups that they cater to maybe. When you pay for research you will get better results than depending on freebees handed out by an industry that makes its living off of traders. Do you see the word slippage anywhere on your great exchange pages?

    [​IMG]

    Do you think a newbie should jump in with the crocodiles without at least a familiarity with what slippage implies?

    I would be surprised if the web masters that they hired ever held any long-term futures trades or traded at all. They may have expertise in something. But, helping new traders is not on their list. Hired research may give a us a trade in Long June/Short April Hogs, for example they might have said to us:

    “for example, the Long June/Short April Hogs spread has closed more favorably toward June on about April 9 than on about February 2 in 25 of the last 30 years … (CME requires minimum margin of $608.)”

    Where are you going to find useful information like that on an exchange web site?

    Suppose it was Long March KCBT Wheat/Short March CBOT Wheat, can you find the correct margin?
     
    #14     May 22, 2006
  5. Here are useful links from the exchange:

    1:1 CBOT Wheat vs. Kansas City Board of Trade Wheat 70% (the spread you wanted)

    Maybe you should spend five minutes doing some research before you try and call me out on this forum. If you can't find this simple information on cbot.com you probably should stop trading. Joe Ross's writings are complete crap, I doubt anyone has made any money trading the Joe Ross hook. I could put a hundred more useful links for newbie if I had more time.

    Here are more Margins
    http://www.cbot.com/cbot/pub/page/0,3181,1041,00.html

    Calender w/important dates http://www.cbot.com/cbot/calendar/month/0,2409,05+22+2006+H+AR+FR+EU,00.html

    Ag calculater to make conversions between units
    http://www.cbot.com/cbot/pub/page/0,3181,263,00.html

    Contract specs w/delivery area, dates, FND, LND Trading hours
    http://www.cbot.com/cbot/pub/page/0,3181,21,00.html

    Holiday trading schedule
    http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+38289,00.html

    CBOT Product Algorithms in electronic trading
    http://www.cbot.com/cbot/pub/page/0,3181,2000,00.html

    Exchange Fee Schedule (very important)
    http://www.cbot.com/cbot/pub/page/0,3181,1042,00.html

    I use these definations to understand more complicated strategies.
    http://www.cbot.com/cbot/pub/page/0,3181,1993,00.html

    Error Trade Policy
    http://www.cbot.com/cbot/pub/page/0,3181,1174,00.html

    All these above links are things that you should be aware of before you trade in a market. I like to learn everything about the exchange and product before I invest in it. Surprises can cost you a lot of money.
     
    #15     May 22, 2006
  6. -ooO-(GoldTrade and Joe Ross trading
    <a href="http://tinypic.com"><img src="http://i4.tinypic.com/10wl75f.gif" border="0" alt="Image and video hosting by TinyPic"></a>
     
    #16     May 27, 2006
  7. #17     May 27, 2006