[ Home ] — [ Commodity Trading Products ]           

1. Commodity Pyramid Trading Introduction

This commodity pyramid trading introduction chapter describes the objective of this course, the concept of pyramid and pillar trading, and how you can profit by using these trading strategies.

A.   Objectives of this Trading Course

This Commodity PYRAMID Trading Course^TM will give you the skills to analyze and select commodity futures trades which have a high likelihood of being profitable. You will also learn how to incorporate various pillar and pyramid strategies into your trading activities.

This is not a trading system. It is an educational presentation which uses common industry information and techniques to help you define a simple Trading Plan. You can use this trading plan to intelligently evaluate and select commodity markets that have the highest likelihood of becoming a successful trade. This course will teach you trading techniques that minimize your chances of loss while simultaneously enhance your ability to profit from "expected" market price movement. You will also need to define a Money Management Plan to control your risk and loss. And finally, you need to paper trade for at least three months to develop the confidence and skills to be successful in your trading efforts. By doing these things, you gain a significant advantage over other traders.

I can't guarantee your success – but I will do my absolute best to teach you how to trade intelligently.

At the end of this trading course, you will know how to more successfully do the following:

• Analyze commodities with high potential for a successful pyramid trade
• Understand and use several simple pyramid and pillar trading strategies

Special Notice

The information in this Commodity PYRAMID Trading Course^TM frequently refers to, and builds upon, information which is contained in my complete Commodity FUTURES Trading Course^TM. The reader is assumed to have obtained and mastered the materials in this course which is available on my web site at:

http://www.Learn-Futures.com

B.   Notices

The Commodity Futures Trading Commission and The National Futures Association requires the following notice be stated:

There is a Risk Of Loss in Futures and Options Trading.

I am not an investment counselor or a commodity trading advisor, nor do I give advice on specific investments. This educational trading course is designed to give you the skills and insight that will help you to pyramid trade commodity futures more successfully.

Successful past results don't necessarily mean success in the future. There is a risk of loss in pyramid trading. Do not trade using money that you can't afford to lose.

Over 90% of new people who engage in pyramid/pillar trades will lose money. The other 10% are successful for the following reasons:

• They learned about how the futures markets work,
• They learned how to anticipate and identify changes in a future's price and position themselves to benefit from that price change,
• They have defined and use both a Trading Plan and Money Management Plan.

This trading course will teach you how to do these things.

D.   What You Will Need To Pyramid Trade

Here's a list of things you need to successfully pyramid trade futures contracts.

• A trading account with a broker
• A telephone to contact your broker
• A calculator
• Commodity Price Charts subscription (see Appendix A)
• About 10 minutes each night to assess your current position, plus about an hour every Sunday evening to perform a revised analysis on your current position
• The Pyramid Trading form (see Appendix C).

It is on strong recommendation that you completely read this trading course three separate times. The first reading should be done to get the general idea of what is involved in the entire process – that is, you get a general grasp of things. The second time, read it to help reinforce your knowledge as well as help you to better understand the process presented in this course. The third reading will be helpful, as you should be ready to start defining your personal Trading Plan and Money Management Plan.

Resources you will find both helpful and necessary in your trading activities are described in the appendices.

The next chapter covers Commodity Pyramid Trading Characteristics.

[ 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.