How to Become a Real-Time Commodity Futures Trader From Home
Living the Ultimate Entrepreneurial Dream

CONTENTS

INTRODUCTION

1 A BRIEF HISTORY OF FUTURES TRADING

2 THE MECHANICS OF FUTURES TRADING

The Futures Contract 11
The Players 14
The Intermediaries 19
Oversight 23
The Marketplace 25

3 YOUR COMPUTER CONNECTION TO THE TRADING WORLD

From the Floor to Your Screen -Like Magic (Almost) 41
Data Vendors: Real-Time Data 42
A Note on Delayed Data 46
Charting Software Packages 47
Trading Systems/ Black Box 49
Neural Nets 51
Hardware Requirements 53
Summary 55

4 TRADING PERSPECTIVES

The Fundamentalist, the Technician,
The Fundician, and the Technimentalist 57

5 MARKET DYNAMICS

Markets As Natural Phenomena 61

6 TECHNICAL TOOLS OF THE TRADE(R)

The Bar Chart 67
Japanese Candlesticks 68
Chart Patterns 73
Technical Indicators 77
Trends and Countertrends 78
Things I Use 86
Technical Tools 93

7 TIMING IS EVERYTHING

Trading Time Frames: What Time of Trader Are You? 103
Charting Time Frames: Time As a Tool 110
Order Placement: Timing the Trigger 111
Gann Time 114
Times to Trade-Times Not to Trade 118

8 THE MARKETS

What to trade? 121
Intermarket Relationships 127

9 THE BUSINESS OF FUTURES TRADING

Risk (The Big "R") 137
Risk Management 139
Stop-Loss Orders 140
Moving Your Stops 143
Money Management 147
Trader Psychology-The Critical Business of Controlling Emotion 152
Qualities of CSTs (Consistently Successful Traders) 156
Other Ways to Trade 158
Advisory Services 160

10 OUR COMMISSION HOUSE (FCM)

The Broker: What We Want, What We Don't Want 163

11 ALL THE NEWS THAT'S FIT To TRANSMIT

Scheduled Reports 169
Unscheduled News 177

12 SPECIAL TRADING-UNIQUE, FASCINATING, FUN!

Are You a Night Person? Trading the International Markets in Real-Time 181 Tetherless Trading-Trading from the Yacht 183
Cybertrading-Trading and the Internet 184

THE CLOSING BELL

FOOTNOTES 193

DAILY TRADING LOG 195

APPENDIX A

The Keltner Channel 197

APPENDIX B

Further Examples of Multiple Time Frame Trading Confirmation 199

APPENDIX C

The Keltner Confirmation (KC) Method 213

APPENDIX D

Trading Performance Summaries 229

APPENDIX E

System + Discretion = Synergy 237

APPENDIX F

A guide to Futures and Options Market Terminology 249

APPENDIX G

Sources and Resources 293

INDEX 305