To attempt prediction of where the commodity markets might be going, it is imperative to know where they have been, and how they might have gotten there. Consequently, the book starts out with a thought-provoking, and perhaps even controversial, theory on the catalyst and impact of the record-breaking commodity market volatility seen in the late 2000s and the collapse of equity market volatility in the late 2010s. This book also dives into the hot debate of safeguarding client assets from brokerage firm failures such as PFGBEST and MFGlobal.
In early chapters of "A Trader's First Book in Commodities" facilitates readers to understand why the futures markets were created and the overall contribution of such markets to society and asset pricing. From there, readers will learn about logistics of trade execution and how they can utilize the available alternatives to their advantage. They will also become aware of market characteristics that are exclusive to the futures and options trading arena.
This book is unique in that it outlines the process of choosing an appropriate broker, brokerage firm, trading platform, and understanding the cost of futures and options price data. In doing so, I attempted to paint a realistic picture of what the results of various choices might yield.
I couldn't leave out a few of the topics covered in nearly every beginning trading book such as order types and calculating profit and loss. However, I believe the material to be covered in a practical, easy to understand and opinionated way.
The book concludes with an original look at trading plans, coping with margin calls and the power of maintaining emotional stability. Furthermore, a conventional glossary of industry terms has been replaced with a chapter titled "Futures Market Slang" in which readers are warned of the various possibilities of terms and uses of terms, that they might be exposed to in communications in regards to their commodity trading. Commodity traders have developed a unique style of communication and for those not familiar with insider "slang" it can be confusing and potentially costly. It is imperative that a trader's communication with his brokerage firm is clearly understood by both parties, and this book attempts to close the gap between broker and trader.
In addition to offering an alternative and candid view of getting started in futures trading, "A Trader's First Book on Commodities" was intended to offer readers some entertainment value as well as an insider's perspective on the practicality of trading. For example, for the sake of keeping the reader "wanting more", several financial quips and interesting facts are located throughout the book. Additionally, in my opinion, proximity to the markets provide me the opportunity to share many ideas that strictly "academic" books might overlook.