Teacher and consultant to the futures industry since 1983
Teacher and consultant to the
futures industry since 1983
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Items you need to improve and protect your FCM or IB... 1. Very important and useful forms and letters for different applications for the FCM and the Introducing Broker. Visit our "forms" page. |
WITH ALL THOSE FUTURES TRADING COURSES, WHICH ONE DO I BUY? There are many commodity trading courses on the market today. As a novice investor, and interested in an introduction to the exciting trading in commodities and commodity options, it is advisable to gain some knowledge before putting yourself in the hands of a representative. Although you will never learn more than when you begin trading, you should at least learn the basics before placing your money with a firm. Don't expect to become an expert by taking any course or courses, and don't wait to be an expert before you begin to trade. If you wait to become an expert, you will never trade since there are many who have traded for 30 years or more that still have not been very successful. This page then is meant to prepare you for the steps you need to take and the considerations you must make before you begin trading. Of the seven or eight courses I have reviewed, I find they most often fit into one of the following categories: Some of the trading courses are all "hype". You've seen them... "I made $20,000 this morning trading pork bellies as I was drinking my coffee... etc. etc." Frequently you will find these courses empty of substance and simply a prelude to several calls from representatives trying to get you to send money to begin trading. The course will often present a trading philosophy, but one that is just confusing enough that you will need the "assistance" of a representative. Often these methods will lead to other fees for advisory services and other extras. Other courses are way too deep to follow. Although well meaning for the most part, the course is too advanced for the real beginner. It too will discuss strategies that are complicated and even some representatives in the industry will be confused by the methodology. Finally there are the courses that offer nothing for the beginner. They are trading programs only. The novice wants information to build on and these courses start out as if trying to build a ten story building by starting at the top. The new investor has just wasted his money on these courses. I will admit that although I have traded for decades, I got lost in some of the material presented in a couple of the courses I reviewed. As a beginning trader, I suggest you ask questions about the course. If you receive a flyer, call the place and ask what the course has to offer. Does it start out with the basics, and does it teach substance or is it just a lead in to make you a customer. Will the course teach you how to make trading decisions on your own? (You will at first want the help of a competent and trusted representative), but you want to feel like you are a big part in the decision making process when it comes to placing a trade. If you do buy the course, and if you are considering working with the representative offering the course, do you feel from your conversations that you may enjoy having this person work with you? If you do decide to work with this rep, will he or she be willing to add to your knowledge base by assisting you with your education as you trade? These are all questions that are very important because as it is said in the "sales game" the prospect doesn't buy the product, they buy the person selling it! Keep in mind that you will be trading with your money, and you deserve to know what you are getting. If you are satisfied with the answers about the course, make sure you are comfortable with the company you are buying it from. Do you trust them? Is there a feeling of confidence that you are about to be dealt with fairly? Is there room for one more course out there? Oh well... I know I didn't answer all your questions, and I will be willing to do so by phone or by email. I worked with customers and traded their accounts for about 12 years, and I enjoyed the education process. It helped the customer enjoy the "game" more. They relished every victory because I always explained all the reasons I liked a specific trade, and they were a major part of the decision of whether or not to make that trade. Then too were the losses. Nobody likes losses, but they are acceptable (and inevitable), if you understand why the trade was made in the first place. I believe that the time spent by the representative educating his customers is the most important time of the job. One final note: Please remember the disclosure on all futures material..."Futures trading involves substantial risk, is not for everyone, and only risk capital should be used". That my friends is not just a formality, it is the truth. Futures and futures option trading is not an "investment", I don't care what anyone says! This trading is a risk venture. I always told my customers it is a very serious game. Serious because it is money, and a game because you are trading against all the others on the floor, and for each winner in a trade there is a loser. Get in touch with us by
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