Commodity Futures Trading

Course 401    

Overview

With commodity markets reaching new highs and volatility increasing, our Commodity Futures Trading course aims to give you an understanding of the major commodity markets and how to trade them successfully.

This course highlights the key concepts involved in commodity trading with elements drawn from real-world situations. We start by developing a macro and technical view of today’s commodity markets by examining their fundamental characteristics and principles. Then, we examine the historical perspective, price behavior, and typical commodity patterns over time

You will learn about the risks and rewards across all sectors, the nuances and quirks specific to the different commodity markets, how those impact price movement and volatility, and about liquidity issues in lightly traded commodities. Most importantly, we look at how these factors affect the bottom-line - your P&L.

The vast majority of the course will cover the main trading methods that are effective in the commodity markets. Some trading tools and techniques are more applicable to one type of commodity than another. We’ll look at each trading technique using real examples to show the successes and failures of different trading strategies. We will explore the various trading time-frames like: day trading, overnight trading, and medium to long-term trading.

Some of the practical tools our students will enjoy:

• Analysis and case studies of current events in the market as they apply to the course a material.
• Work with trading platforms and technical analysis tools used by Wall Street professionals.
• Identify and develop the right trading style for you, while understanding how to adapt to changing market conditions.

Brief Curriculum:

Part 1: Introduction to Futures
We will examine the fundamental characteristics and principles of commodities and their cyclical nature. You will understand why the need for these instruments developed and how the mechanisms of delivery and settlement in commodity trading came about. You will learn to identify the key players and also become familiar with the role of the commodities exchanges.

Part 2: Futures Markets
You will learn about the range of commodities futures commonly traded and focus on the four main commodity sectors: energy, softs, metals, and grains. We will examine major factors in supply and demand in these markets, what influences the producers have over the process, and understand the risks and rewards for trading in each sector.

Part 3: Technical Analysis for Commodities Trading
Technical Analysis covers a broad array of topics, tools, techniques, and systems for trading and hedging in the commodity markets. We will present a historical perspective on the use of technical analysis in analyzing commodity prices. We will overview all of the major tools, techniques, and common market patterns.

Part 4: Two Approaches to Futures Trading - Directional vs. Spreads
You will be exposed to the principles and secrets behind Directional Trading and Spread Trading, two of the most popular approaches to trade commodity futures. You will learn when each approach is most applicable for certain market conditions and more importantly, how they apply to the trading style and personality of the trader.

Part 5: Practical Futures Trading - From Demo to Live Trading
We will explore all aspects of moving from paper trading to live trading and to treat trading like a business. This will include but not be limited to: electronic executing vs. open outcry executing, choosing a trading platform, a quote vendor, brokerage firm, reading quotes and calculating tick/price value, and more.

Part 6: Risk Management
Proper money management is critical. This may be the most important part of trading futures. Without good money management techniques, you might as well just throw your money away. Knowing which market you want to enter is only the first step. Next you must figure out your risk / reward ratios. You will learn how to eliminate the downside risk without limiting the upside potential.

Small Groups

We believe that personal attention and tutoring is the most effective way to help you understand the material and succeed. That's why each class has a high teacher to student ratio (a maximum of 10 students per class, guaranteed) to give our students personal attention and the depth of knowledge they need to be successful traders.

Learning Outcomes

At the end of the course participants will be able to:

• Understand fundamental theories applied to the valuation of futures.
• Know the rationale for investing and trading commodity futures as an alternative asset class to stocks and bonds.
• Identify key factors necessary to hedge with future contracts.
• Understand the various trading techniques, strategies, and the psychology behind market movements.
• Learn practical trading strategies and techniques for the different commodity markets, including: energy, softs, metals, and grains.
• Learn to trade commodities futures with an advanced electronic trading platform. Take advantage of market depth information and advanced charts & indicators.
• Know the relationships between commodity futures, commodity ETFs, and the cash market.
• Learn to minimize risks when trading illiquid commodities and options.

Full Agenda

Special Bonuses for Our Students

Class Material Binder & CD
Each student will receive a binder with all class slides and material printed. The printed slides have room to write notes. Also included are class exercises, handouts and a CD with graphics and charts.
All material is organized in accordance with the curriculum.

Membership
Graduation from our courses does not mean your relationship with us ends. Our graduates will receive access to our special investor forum, where you can ask questions and exchange ideas with instructors as well as other investors like yourself. We will also invite you to participate in our annual conference, free of charge.

Details & Registration