From the basics to the more advanced aspects of trading commodities, this book covers it all. There are 25 lessons that will teach you how to be successful in trading commodities. You will also be given the challenges traders go through as well as the best solutions. A must have for anyone interested in trading commodities.
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Back in the 1930s studies of the methods of trading were rare. The law of supply and demand was quoted glibly but there were few men who could prove in black and white that there was such a law, or that it actually had a function in governing prices. The causes of price swings were little understood by those in the terminal markets, and certainly not by the general public.
Made available to the finance community once again after a criminal absence, Extension Course For Trading Commodities provides outstanding coverage to the field of commodities and futures. It is based on a course originally launched in 1934 and, arranged in a unique course format style, starts by looking at the fundamentals such as the effects inflationary factors have on commodity pricing and supply and demand. It considers the effects of agricultural policies, rules, regulations and orders, and discusses the effect that environmental events have on the commodities market. The authors study the technical aspects of this field, highlighting their theories with a generous supply of charts, tables and worked examples, all of which are as current today as they were when first conceived.
The purpose of this course is to assist traders in determining what is a balance between supply and requirement; how to determine whether the price has discounted bullish or bearish conditions; and then how to determine when and at what price levels to make a trade that will prove most lucrative.
Ever since the birth of speculative markets, forecasting future price movements has been the biggest of challenges for market participants at every level. We all could easily throw up our hands in desperation because any attempt to predict the unpredictable seems a fruitless cause, or we could read Extension Course For Trading Commodities and make best use of the wisdom held within. Using the grain market analogy, this course is as valuable today as it was in the 1930s and 1940s. It provides the reader with a historical yet current treatment of the commodities market. Toddy's traders, financiers and students will find this work interesting, enthralling, and above all, enlightening.
THE TRADERS' MASTERCLASS SERIES
Great investment advice is a rare and timeless commodity.
The Traders' Masterclass series brings to the market a set of classic texts from the "golden age" of technical analysis - timeless trading wisdom, laying the foundations on which a growing body of investment literature has been built.
These original works from the pioneers of technical analysis contain uniquely insightful lessons, winning formulae and trading tactics that can be put to use in any market, at any time. Generations of investors may come and go, but the nature of speculation remains the same. For investors and market students alike, these masters represent the original formulae for trading success.
Some of these works originally took the form of correspondence courses, and have never previously been published as books, while others have existed only as rare manuscripts, available to just a handful of traders with the determination to track them down.
Over a twenty-year period, an experienced US trader and renowned investment book expert, Donald Mack, selected and tracked down these classics so that modern investors might benefit from their advice. Each book in the Traders' Masterclass series has been introduced and annotated to aid its application in today's markets. To the trading community these manuscripts will be rare and valuable sources of wisdom.
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Table of Contents:
The Traders' Masterclass Series.
Introduction to First Edition.
1. The Relativity of Prices.
The Law of Price Relativity. The General Trend of Commodity Prices. Inflation.
2. The Law of Supply and Demand.
The Primary Price Law.
3. The Dow Theory Applied to Grain.
The Three Market Movements. The Potent Price. The “Line” or Congestion. Averages Must Confirm Each Other. Reactions Are Sharp. Action Following Panics. Market Like a Pendulum. Speculation in General. Manipulation. Your Greatest Speculative Enemy. Dow Theory Applied to Grain.
4. Gregory King's Law of Prices and Historical Effects of High and Low Prices.
The Money Theorists. Practical Application of King's Law of Prices.
5. Daily Action.
A Mechanical Method of Market Analysis. Definitions.
The Movement Graph. The “Coil” Formation. Market Weights. Definitions. Conclusions.
The Circumscribed Objective. Market Scale Weights. Scale Weights.
9. Cycles and the Weather.
Ember Days. Summary. The Figure Chart. Market Scale Weights.
10. Seasonal Trends in Grain Prices.
The Seasonal Grain Cycle. Post-World War Markets. Relationship of Cash and Futures Markets. Actual Tops and Bottoms on Wheat. Conclusions.
Business Indices. Reference List of Analysis Factors.
The Dominating Market Influence. Time and Distance of Extremes and Runs. A Most Important Time of Year. Top and Bottom Formations.
13. Oats and Barley (And Answers to Examination Questions).
Price Characteristics. Conclusion on Oats. Barley. Answers to Examination Questions.
14. Business Fundamentals and Grain Prices.
The Division of Labor.
15. The Basis of Prosperity and Advancing Prices.
New Inventions. Building and Business. The Record. Fundamentals of the Depression. Then Came the Turn. The Building Deficit. It Forecasts the Future.
16. Changing Aspects of American Industrial Economy.
We Become an Exporter. A Changed Economy. We Are Not Independent. Changed World Conditions. The Roosevelt Trade Policy. Conclusions.
17. The Business Cycle and the Business Indices.
The Business Cycle. Prosperity. The Decline. Depression. Recovery. A Business Index.
18. Grain Trading Methods of Big Operators.
A Plan of Operation. Inside Information.
19. Trading Methods of Big Operators (Continued).
Characteristics of His Trading. Suggested Method of Trading Operations. Trend Lines. The Progressive Average Trend Line.
20. Suggested Method of Trading Operations.
Margins. Steps in Trading. Crop Scare Bull Markets. Types of Grain Markets. Trading in Various Types of Markets.
21. Application of Trading Methods.
How Should Profits be Used? Stop-Loss Orders.
22. Trading in a Narrow Market.
23. May Wheat and the Banking Holiday.
24. An Erratic Wheat Future in an Unusual Market.
Bids and Offers. Minimum Prices.
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