Trading Commodities and Financial Futures – George Kleinman

Course Overview

In this book, one of the world’s most experienced traders introduces a new step-by-step methodology built on more than twenty-five years of success. George Kleinman begins with the basics—including a complete primer on how futures and options trading works, how traders’ psychology impacts the markets, and how to avoid the pitfalls that trip up so many traders.

Course Outline

Copyright

FINANCIAL TIMES Prentice Hall

Financial Times Prentice Hall Books

Acknowledgments

Preface

Introduction

Basic training: a futures primer

1. Futures markets and the futures contract
2. It is as easy to sell short as to buy long
3. Margin and leverage
4. Delivery months
5. Brokers and commissions
6. The players
7. A hedging example
8. The Exchange, ‘open outcry’ and the clearinghouse
9. The regulators and regulations
10. How to place an order
11. Conclusion

The intermediate futures trading course (or just enough knowledge to make you dangerous!)

1. Zero-sum game
2. Money management
3. Contrary opinion theory
4. Spreads straddles and switches
5. Normal or inverted?
6. The “Voice from the Tomb”

A diabolical story

The options primer

1. What is an option?
2. How options work

Advanced options strategies

1. Buying options to protect futures
2. Writing options as a hedging strategy
3. Covered option writing
4. Option spreads
5. Straddles and strangles
6. Butterfly spreads
7. Ratios

Eight winning options trading rules

1. Stay away from deep in-the-money options
2. Stay away from deep out-of-the-money options
3. Trade slightly out-of-the-money, at-the-money, or slightly in-the-money options
4. There is a time for all seasons
5. Covered call writing is a good strategy for what appears to be a bullish environment, and covered put writing is generally good for what looks like a bear
6. In “normal” markets, write straddles and strangles
7. Look for opportunities to back spread
8. Use options to hedge a profitable futures position

How to analyze the markets fundamentally

1. Fundamental analysis
2. Technical analysis
3. Which is the best way to go?
4. Financial futures
5. Currencies
6. Energy
7. Agricultures
8. Meats
9. Metals

The advanced futures trading course (or how to analyze the markets technically)

1. Does technical analysis really work?
2. Charts
3. Gaps
4. Open interest
5. Point and figure charts
6. Japanese candlestick charts
7. Spread trading—a valuable forecasting tool
8. Why technical analysis makes sense

The most valuable technical tool (TMVTT)

1. Bottom pickers versus trend followers
2. A moving picture
3. A moving average primer
4. The simple moving average
5. How many days should you use in your moving average?
6. Bottom line

How I use “TMVTT”

1. Step 1
2. Step 2
3. Additional rules for maximum success

A day trader’s secrets

1. Your nine essential day trader’s rules
2. The trend reversal day trading system

Your state of mind (trader’s psychology)

1. Motive
2. Six hurdles to successful trading
3. Money management
4. If you don’t feel right, you won’t trade right
5. Your advantage

Twenty-five trading secrets of the pros

1. Secret 1
2. Secret 2
3. Secret 3
4. Secret 4
5. Secret 5
6. Secret 6
7. Secret 7
8. Secret 8
9. Secret 9
10. Secret 10
11. Secret 11
12. Secret 12
13. Secret 13
14. Secret 14
15. Secret 15
16. Secret 16
17. Secret 17
18. Secret 18
19. Secret 19
20. Secret 20
21. Secret 21
22. Secret 22
23. Secret 23
24. Secret 24
25. Secret 25

Jesse’s secret

1. The secret to making the big money is to maximize the big move
2. Jesse Livermore
3. Those who can be right and sit tight

World futures and options exchanges

1. Argentina
2. Australia
3. Austria
4. Belgium
5. Brazil
6. Canada
7. Chile
8. China
9. Denmark
10. Finland
11. France
12. Germany
13. Greece
14. Hungary
15. India
16. Israel
17. Italy
18. Japan
19. Korea
20. Malaysia
21. Netherlands
22. New Zealand
23. Norway
24. Singapore
25. Spain
26. Sweden
27. Switzerland
28. United Kingdom
29. United States

Index