Make Profits from Derivatives Trading

How to Make Profits Trading Agricultural Commodities

How to Make Profits Trading Agricultural Commodities. A study of the commodity market With Charts and Rules for Successful Trading and Investing.

More profits in commodities than stocks



  1. Commodities follow a seasonal trend and are much easier to forecast. They move with supply and demand.
  2. It requires much less work to keep up charts and calculations on Commodities. There are 1200 stocks listed on the New York Stock Exchange and you must keep a separate chart on as many of them as you wish to forecast the trend. With Cotton, you need one to three charts, and the same with Grain and other Commodities.
  3. When you have a forecast made up for Cotton or Grain. if you are right, you are sure to make money because all options follow the same trend. There are no cross-currents, as in stocks, with some stocks declining to new low levels and others making new highs.
  4. In dealing in Futures, there are no heavy interest charges as there are when long of stocks and no dividends to pay as when short of stocks.
  5. Dividends can be suddenly passed or declared which will affect stock prices. This cannot happen to commodities.
  6. Pools cannot manipulate a commodity as they can a stock.
  7. Facts about commodities are generally known while many stocks are ,nystery stocks all the time and some stocks are subject to false rumors.
  8. The stages of the business cycle tell more about the prices of the commodities than they do about stocks.
  9. Commodities are governed only by demand and supply. This is not always true of stocks.
  10. Speculation in commodities is more legitimate than speculation in stocks because you are dealing in necessities.
  11. Commodities are consumed. Stocks are not. This has a bearing upon the ease of forecasting commodity prices.
  12. You can forecast tops and bottoms of commodities with greater certainty than of stocks.
  13. Stock prices tend to move by groups of stocks, while commodities move independently.
  14. Notable speculators like Armour. Patton. Livermore and Dr E. A. Crawford. have discovered after long experience that they can make money with greater certainty in commodities.
  15. Stocks go into receivers' hands and go out of business. Commodities go on forever. Crops are planted and harvested each year.
  16. There is always a demand by consumers for commodities. Which is not the case With stocks.
  17. Since the Securities Exchange Law was passed. marginal requirements are much higher on stocks than on Commodities. Therefore. you can make more money on the same capital by trading in Cotton. Wheat, Corn, Rubber or other Comrnodities. than you can by trading in Stocks.
  18. When you learn the rules for forecasting and trading in Conmodities, you will see that they never change, because there will always be wheat, corn. and cotton crops each year. These crops will be consumed. while stocks change and you have to study new stocks to keep up with changed conditions.