Getting Started in Commodities shows you how to successfully invest in the commodities market in futures, stocks, stock indices, and options. The book explains how the commodities market works as well as how investors can identify and track commodity opportunities — using fundamental factors such as supply and demand and technical analysis tools. Fontanills, a seasoned trader and educator, also explains the basis of money management, teaches you how to find the best broker, and how to read seasonal chart patterns. Finally, he explores how to build a winning system and test and adjust it for success. Helpful appendices of contract specifications and additional readings are also included.
Opportunities to make money in the commodities markets have never been better. Not only have the costs of trading come down, but technology has made the process a lot faster and more efficient. It’s easier than ever for individuals to make profits and develop an income stream trading commodities. Meanwhile, the number of products has grown exponentially; countless opportunities exist today that simply weren’t available a few years ago.
Yet, while the commodities markets offer a plethora of trading opportunities, entering the futures arena might seem daunting for the inexperienced trader. I am constantly amazed by all of the questions and misconceptions I’ve heard about commodity trading. How much capital do I need? How does it all work? Why should I even bother? What kind of commodities can I trade? Isn’t it too complex and risky for the average investor? If I don’t know what I’m doing, will I wake up one morning to find 100,000 bushels of corn in my front yard?
This is the beauty of the book you are about to read. In Getting Started in Commodities, George Fontanills demystifies commodities trading. The truth is that commodities are an important element of diversification that most investors don’t know enough about. Since very little correlation exists between commodities prices and other financial markets, adding commodities to your portfolio—especially if you already own stocks or bonds outright or through mutual funds—can create some necessary diversification and actually lower your vulnerability to market volatility.
Although you might not realize it, you already have experience with many commodities. Gasoline is just one example. If you drive up to the gas pump and prices are $2.50 one day and then $2.60 a week later, you have personally experienced how a commodity’s price can change over time. In the first few chapters, George Fontanills shows the reader how to take advantage of everyday life experiences and translates this knowledge into profit-making trading techniques.
Many books teach strategies, but can’t really tell you what type of trading is right for you. In this book, strategy selection is discussed in detail, as well as the psychology required to implement them. When reading through the text, keep in mind that there are many ways to participate in the various commodities markets, each with its own unique characteristics. For example, both gold futures contracts and gold exchange-traded funds (ETFs) offer ways to participate in the price moves of this precious metal. However, these two investment vehicles have very different characteristics.
- What Is a Commodity?
- How the Commodities Markets Work
- Commodity Trading in the Stock Market
- Commodity Trading in the Index Markets
- Fundamental Analysis of the Commodities Markets
- Technical Analysis of the Commodities Markets
- Elliott Wave Trading for Commodities
- Options Trading in the Commodities Markets
- Money Management: Staying in the Game
- Psychology 101:Winning the Mind Game
- Trading Commodity-Related Growth Stocks
- Seasonal Commodity Patterns
- Brokers and the Online Revolution