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Commodity Trading Lesson Index

Lesson 27: Mrs. B Is Ready To Begin

Mrs. B is ready to start trading commodities. She enters her futures trading program educated primarily as a stock market investor. She has read a little about futures, has spoken with a few people and is on pretty good terms with her futures broker. As she begins her trading, she is willing to share a few of her thoughts with you,

  1. She is giving herself plenty of time to make a profit from her futures trading. Since the results she achieves in futures will be compared to the results she achieves by having one-half her money out at interest, she has until December 31st, 2001, to make this comparison. This gives her a full eleven months to try to earn a profit from her futures program.

  2. Mrs. B has read that it is quite possible to lose money when trading in futures and options. She is well aware of this. She has signed all the necessary disclosure agreements that her broker has provided her with and she knows the risks that are involved when she makes the decision to commit $5,000 of her risk capital to futures trading.

  3. Well before she begins trading, Mrs. B has come to the conclusion that to succeed in the futures market she will have to become self-reliant. She believes she will be unable to depend on any one person to make her successful. This is a carryover conclusion from her years of trading in the stock market where self-reliance was an important characteristic of Mrs. B.

  4. In this effort to become self-reliant, Mrs. B is willing to "look the fool" at any time to anyone who examines her trading methods or her trading style. She has concluded that the route to financial success is most likely a path not well traveled and if others think her foolish for using strange trading or investing methods, this doesn't bother her one bit. She believes that most people who become self-reliant and successful probably seemed strange to others from time to time.

  5. Mrs. B does not plan to be pushed or coerced into trades by anyone. She calculates that if she doesn't make a single trade all year long she will at least break even. Breaking even is better than losing money, sometimes a lot better. If someone suggests to Mrs. B that she should overtrade or trade markets when she is not ready for them, she will thank that person for the advice and then return to her own self-reliant foolish method of investing which never involves overtrading.

  6. Mrs. B has a long-term outlook. She wants to succeed long-term. She wants to succeed in 2001 and 2002 and 2003 and 2023. She wants to end up with a trading method to pass onto her children. It is, therefore, this desire to succeed over the long-term that forces her to evaluate every trading method with regard to how that method works over the long-term. Buying on Monday and selling on Friday may work next week but it will never be a reliable trading method for the long-term. Therefore, she will reject that method of investing along with many others.

  7. Mrs. B also does not plan to use any moving averages when trading commodity futures. While it is true that she did use moving averages when trading in the stock market, as illustrated in lessons 18 and 19, she does not plan to use moving averages for trading commodity futures. She will explain why a little later on as these lessons progress.

  8. Mrs. B does plan, however, to use robots in her trading. In fact, she will use them all the time. Of course, she could use pawns or she could use soldiers or she could use human sacrifices, but she prefers to use robots. Her robots even have names. She will tell you the names of these robots from time to time as she makes use of them in her trading plan.

  9. Mrs. B wants to succeed. To succeed she believes she will have to identify the source of any trading suggestion she receives. She believes that she will have to tag each source of information as adequate-useful or as inadequate-not useful. She believes that only by this method can she ever become a self-reliant and successful futures trader.

  10. Finally, Mrs. B accepts all markets for trading. She will trade any market at any time as long as that market meets her conditions for trading. She will not trade all markets at all times but she may trade any market at any time. She is both predictable and unpredictable. Predictable in that she will trade any given market, unpredictable in that only Mrs. B and her robots know precisely when she will make her move.

Mrs. B is ready to begin. Click here to proceed.

Bruce Gould


Always remember that stock, options, and futures trading may involve substantial risks and that past performance is no guarantee of future performance.