Good books - futures/commodities

[chops_a_must]

Belly Button lint? I think I might start buying some futures on that

Yeh, I was happy with $900 for doing what I absolutely love, not to mention the time I get to study my azz off full-time on all of this stuff! Well a bit more than full-time I think, it seems these days I am either online reading about investments or in a book, from the time I wake up until the time I hit the hay! Really just want to get the basics down pat so I can choose the strategies I want, and most importantly, keep it simple!

Yeh, I am not leveraged at all, fortunately I have (I think for my age at least, only 25), a very decent size portfolio. And I definately have no gambling streak in me thank god. Only thing I am seriously considering doing, is borrowing against my assets when I start working, so I can use dividends and some income to service the interest repayments and hope I can make some large gains over the long-term! Its all about compounding rates of return hey, not to mention, you need serious money to make serious money!!

Agree 100% on the mix between fundamental and technical. I just wish I knew the basic technical strategies to apply (which would be most useful for fundies). Ive so far started looking at moving averages, RSI, volume and momentum, resistance and support, now about to look at head and shoulders and candlestick formations (I think thats their names).

As for futures, I had a fascination with them after seeing how they predicted some of the recent market moves before they happened and as you say, they could definately help me with investments in their related equities.

As for paper trading, ha ha, I havent been able to do that either, I always get sucked into dabbling small amounts. Though futures are something I wouldnt dable in until I was absolutely certain! Just in the process of getting my options account opened now, covered calls are something I think is absolutely a MUST for all value investors. Strike price at fair value and income generaion, how can you go wrong?

Yeah, there are some pretty obscure futures markets out there, like orange juice.

I think you have a very good approach to what you are doing. Maximising gains and minimising downside risk. It's the name of the game, no matter how you do it. And futures can help you reduce risk, or lower downside damage if done right too.

And Barrett, I agree. BUT... a big part in the run up of wheat prices appears to be runs in soybeans etc. which have taken acreage away from wheat, leading to record lows in stored wheat. So although inevitable, crop rotation (pardon the pun) may take 6+ months to have some real impact.

Mmm... the AWB trade would have sucked. Not much you can do about that... From a technical perspective, I try to find a stock chart that closely resembles the underlying commodity if I am bullish on it. Because I'm not prepared to hold futures overnight, it's an appropriate strategy for me. Worked with LGL for me with ticker gold at the same time as well. But NCM would have been just as acceptable to me. Did the same with Nickel last year.

ETF's may also be another alternative to futures as well. Endless opportunities/ strategies out there.

 

[Buffettology]

Yeah, there are some pretty obscure futures markets out there, like orange juice.

I think you have a very good approach to what you are doing. Maximising gains and minimising downside risk. It's the name of the game, no matter how you do it. And futures can help you reduce risk, or lower downside damage if done right too.

From a technical perspective, I try to find a stock chart that closely resembles the underlying commodity if I am bullish on it.

ETF's may also be another alternative to futures as well. Endless opportunities/ strategies out there.

Yeh, I was reading about orange juice futures when looking at option spreads, ha ha, definately some obscure futures you can trade out there!

Thx, I was also reading about hedging with futures in order to minimise downside damage and probably should have used it in this latest crash/correction (just didnt know at the time), though luckily I cut some losses and got most out.

Good idea on the technical perspective of the stock chart and underlying commodity.

ETF's ha ha, no idea what they are, but I agree 110% on the endless opportunities/strategies out there, far too many to ever get your head around, too bad because Im one of these people that wants to learn EVERYTHING! Just have to relax and let some thing pass!