[ Home ] — [ Commodity Trading Products ]           

4. Commodity Pyramid Trading Examples

There are two major strategies for internally-financed trading. This commodity pyramid trading examples chapter contains examples trading multiple futures contracts in your position using the pyramid strategy. It is the most risky of the two strategies because you acquire two contracts with each applicable price (profit) increase. This results in a risky "inverted pyramid" position which, if not intelligently managed can produce significant losses.

The reader is advised to print a copy of the Pyramid Trading Form^TM and become familiar with it (this form is fully described in Appendix C). While working through the examples, enter the data into the form which is loaded into Excel as each example progresses to gain an understanding of the process and see the results.

All of the examples in this trading course have been developed to help you understand how to use the Pyramid Trading Form^TM. Because of this, it is important that you enter the data for each example into this form to learn what this form does, and what it is telling you. You should also print out and refer to the price charts contained in Appendix B.

Special Note: Most of the content of this chapter has been omitted in this FREE course. Intact chapter information is available only with the complete Commodity PYRAMID Trading Course^TM.

Trade Summary

This Pyramid Trade example resulted in $72,200 profit (before commissions). During the trade your total risk was confined to $4,600 or less.

The next chapter covers Closing Comments.

[ Home ] — [ Commodity Trading Products ] — [ Home Business Products ]

© 1995- Learn-Futures.com.   All rights reserved worldwide.
All images and text found under this domain are protected under all applicable intellectual property laws of the United States.