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. |
STRONG POSITIVE FOR KEN ROBERTS By Gem Murphy In January of 1997, I saw a brochure by Ken Roberts about a commodities course. I promptly got a girlfriend interested and we ordered the course. We digested all the materials, and started paper trading by the end of February. Paper trading is pretending you are trading, and checking the closing price each day, to see how you would be doing. Once you make money doing this, you are ready to venture into real trading of the markets... when you see a reason to get into the market that is! So... you bide your time, and when you see a good chart formation (technical trading; following graphs), then you enter the market. At the same time as buying or selling a contract, you should always put in a protective stop in an attempt to limit your loss if the market moves against you. I like to think of the trading tools I received from Ken, to be like a surfer in the ocean. Ken gives you some basics, and we all know that nothing that fluctuates can be totally predictable. So... does a surfer get on his board with every ripple that goes by? Should you enter the market on a hunch with each fluctuation? No, to both those questions. A surfer gets on his board after he has counted sets of waves, and there is a good formation. Now the odds are greatly in his favor that this ripple, which is now 80% formed into a wave will, in fact, break and go to the shore. The same sstrue in commodity trading. You wait until you see a good formation, where the likelihood of something happening next is appears extremely good, and then you get in with your protection; safety net, or stop/loss. One of my best trades was when my charts told me to go long wheat. My broker told me that all his indicators said go short. I hesitated a day, then followed through on what my analysis said, and went long. Wheat went up to the tune of $1,600! I was thrilled. I decided this was so easy that I would get into a Natural Gas contract. The margin was bigger and the stakes were higher. I had a stop and when the market went against me, I didn't want it to hit my stop as I was sure the price would rebound. So... I moved my stop further away; then I started to pray. I then remembered that you are not supposed to become more religious because of your trading. The market zoomed, stopping me out, and I lost $1,300 but at least not the $5,500 I would have lost if I had been trading without a stop. Of course I could have lost only $600 in the beginning by not moving my stop, but that was water over the dam, and I learned a big lesson. I love trading. It is the biorhythms of people's buying habits. I find it keeps me abreast of current events and has me using my brain and intuition. I don't let others dictate my choices, as most people do not understand commodities. I have a high opinion of Ken Roberts, he reinforced my belief in myself! If you trade; with reason, when the timing is right and with protective stops, you sleep well at night. Gem Murphy lives in Laguna Beach CA and she has told me that she is interested in putting together a group of lady traders who can work together in an attempt to profit in the commodities markets. She says the women need not have experience in commodity trading, this will be a learning experience for all involved and if it works you may even make some money. I will have Ms. Murphy's telephone number here for anyone wishing to contact her. Simply email me with your number and I will have her contact you. I thank Gem for her article and wish her great success. - Dennis P. Stahr NOTICE: Investment Reference does not recommend or endorse any products, brokerage firms, CTAs, CPOs or representatives. All material contained in any article is only the opinion of the person authoring the article. Investment reference will publish any article submitted as a way of offering a public forum and a means of exchanges of views and ideas. Investment Reference also reserves the right to make the final decision on what to publish, and will not publish anything that it considers offensive, slanderous, or fraudulent. Investment Reference cannot and will not be held responsible for any information or content in any articles except those which it authors itself. Click
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