Make Profits from Derivatives Trading

Foundation for Successful Trading in Commodities



There is only one key which unlocks the door to big profits and that key is KNOWLEDGE. You cannot get knowledge without work. I have made a success by hard work and you too, can make plenty of profits out of the Commodity market. if you study and work hard enough. Work is the only way to find the ROYAL ROAD TO RICHES in Commodity trading or speculating. Money always comes to knowledge. Without knowledge, money is worthless.

You can increase your capital and make wise investments When you have acquired the proper knowledge.

To those of you Who have traded in Wheat. Corn. Cotton, or any other Commodity and have lost money, I ask you this question-"Did you ever stop and consider WHY you have lost money"" If you have, you must answer honestly that you have Jost money because you were guessing, following brokers' opinions, or following someone's advice who thought he knew more about it than you did. You probably bought when good news had been discounted and sold \vhen bad news had been discounted. You did not follow any well-defined plan, or fixed rule, and after you had made an mistake and made a loss, you did not make any change when you made the next trade, but continued in the same old rule, and the result was that most of the time you were loser on balance.

Another reason for your failure to make profits was because you did not admit to yourself that you could be wrong and did not protect yourself when you made the trade. However. you rnade the mistake or however you made the loss, the fault was your own, because you had no definite rule to know just when to buy and when to sell.

You should learn to trade on knowledge and eliminate fear and hope. When you are no longer influenced by hope or fear, and are guided by knowledge you will have the nerve to trade and make profits. When you learn the past history of a Commodity, learn the way it is running, what cycle it is in, and then make a trade on definite knowledge, your chances for success are l00% greater. You must learn to trade on facts and to eliminate hope and fear. Learn to protect your capital and profits by use of STOP LOSS ORDERS. Then you will make real profit. When you make a trade and you are wrong, and realize your mistake, there is only one way to correct that mistake, and that is to got out of the market or protect with a STOP LOSS ORDER, limiting your loss to a small percentage of your capital. Your STOP LOSS ORDER protects you in many ways. When you buy a Commodity and protect it with a STOP LOSS ORDER, I, 2, 3 or 5 cents away, you have limited your loss and know that you cannot lose any more.

If you buy or sell Cotton, Hide. Rubber, or any Commodities traded in cents per pound or bushel, protected with stop loss order 20. or 40 points away, risking $100.00 or $200.00 on a contract, you know how much you can lose, and you should be able to take this loss and still have capital to trade with again. A safe plan is to follow rules and that is the only way in which you can hope to make a success in the future.

Nothing will help you more than going over the past history for Commodities, studying its actions under different periods and applying the rules that I will give you later. If you know what a Commodity has done in the past, you have a better chance to determine what it will do in the future. Supply and demand govern the prices of Commodities and all of the buying and selling 1s recorded in the prices.

If you study price movements correctly, they will tell you more about what the market is going to do than any broker, newspaper, or so-called inside information. The time period is the most essential, because time tells what prices are going to do.

LEARN To BE INDEPENDENT: The greatest help that I can give you is to show you how to help yourself. If a 1nan or woman depends upon others for advice, or for inside information and follows what others think about Commodities, he will never make a success in speculation-or anything else. You must learn to be independent. Learn to do by doing, and to know by study and application. When you are following something that you KNOW, you will have the confidence and courage to be successful.

An intelligent man will not follow blindly the opinion of others, without knowing the basis of their opinion. When he himself sees, understands and knows the rules that forecast the trends of Commodities, he will become a successful man, and knowledge will give him the nerve to carry out his conviction. Then he will no longer say. "If I knew that the information I received on wheat was right, I would buy 100.000 bushels, or sell 100.000 bushels." When he knows, based on study, that the indication on Wheat is definite, then he will buy, not with fear or hope. but with confidence and courage.

No matter what business you are interested in. learn all you can about it. The most important thing outside of your health for you to protect is your money. Therefore. take time to study. Prepare yourself to handle your money yourself and do not depend forever and entirely upon others.

A DEFINITE PLAN: Make up your mind to have a definite plan or aim in the future. Decide to follow rule:s when you buy or sell Commodities. First, prove to yourself that the rules that I give you are good. They have worked in the past and they will work in the future. The rules given in this book are practical rules. They have cost me forty years of experience and hundreds of thousands of dollars to learn. I KNOW they will work. Don't take my word for it. Prove to yourself that they are good. You will have to put in time for study. You will have to make sacrifices. But, if you are not willing to work and make sacrifices, you will not make a success at anything. I have studied and improve my methods every year for the past forty years. I am still learning. I hope to make greater discoveries in the future.

After long years of study and research. I have simplified and perfected my rules so that they are practical for others to use and apply. I have eliminated unnecessary details, and have cut down the work so you can get results quicker. You can make profits by strictly adhering to rules. Make up your mind. If you are not going to follow rules, don't start speculating or trading in Commodities-or anything else for you will lose in the end.