Copyright (c) 2009, Commodity Trading School, All Rights Reserved!
Commodity Trading School
Getting Started Lessons 1 through 12
Lesson 1: What are Commodities?
Commodities are any interchangeable product; consequently they will share a common price. For
example, bulk goods such as grains, metals, livestock, oil, and cotton. Financial products such as...
Lesson 2: Basics of Futures Trading
Perhaps the biggest advantage to trading futures contracts is the leverage provided by the
exchange. However, controlling large contracts with relatively low amounts of capital can create high
levels of volatility...
Lesson 3: Technical Analysis
It is important to note that the Technical Analysis Overview provided does not attempt to be a
comprehensive treatment of Charting or Technical Analysis methods. There are numerous, well-
written books on Chart Interpretation and Technical Analysis. A brief and simplistic review of some
basic charting concepts are...
Lesson 4: Points vs. Cents
The four major grains: Wheat, corn, soybeans, and oats, the price is quoted in dollars and cents for
both futures and options. For example, a price quote of 4.09 1/2 is actually 4 dollars 9 and 1/2 cents
per bushel. These grains all move in...
Lesson 5: Different Types of Orders
Being familiar with orders and properly placing them is very important to your trading success. With
quickly changing market conditions, sometimes every minute can count and knowing the type of
order you need to place and placing it accurately can be crucial...
Lesson 6: The Trading Plan
Many who trade futures successfully rely on a trading plan. Just like a business plan outlines in detail
the establishment and development of a proposed business, a trading plan outlines in detail a
structure for trading. There are two major components of a trading plan...
Lesson 7: Playing the Odds
Casinos bring in gaming revenue confident that over time they will collect more that they pay out in
winnings. Similarly, insurance companies collect premium in anticipation of the probability of future
payouts. Option traders can benefit from the same logic by selling credit spreads, thus...
Lesson 8: A Study in Cotton
One of the most exciting occurrences in the commodity markets is when the market trades at or
below historic lows. We are talking about true commodities such as grains, metals, energies, & the
softs. True commodities are products that are grown or manufactured and possess real intrinsic
value based upon supply and demand unlike currencies, stock indexes or financials.
Lesson 9: Options Basics
If you are new to options trading, this section will define what options are and explain the most basic
concepts. It is important that you understand these basic concepts and terminology before you get
into the more advanced topics, which are...
Lesson 10: Intro to Identifying Favorable Option Trades
Options provide a flexible and effective way to trade in the futures markets. They offer investors the
ability to capitalize on leverage while still giving them the ability to manage risk. By combining put
and call options, and investor can design a strategy that fits their expectations of market
movements...
Lesson 11: What is Forex?
The term FOREX is an acronym for Foreign Exchange. It is a worldwide cash inter-bank market
using as floating exchange rate system to trade spot market currencies. FOREX is becoming
increasingly popular among speculators for several reasons. This is the largest and most liquid
market in the world...
Lesson 12: The Story of the Three Sisters - Silver, Sugar, and Soybeans
In the commodity markets many inter market relationships exist. Crude Oil, Gasoline, and Heating Oil
are an example, the same for the bean complex with Beans, Bean Oil, and Bean Meal all being
obviously related...
Do you know which
30 minute period of
the trading day is
most likely to see an
increase in stock
prices?
Did you know which
month the NASDAQ
typically under
performs relative to
the rest of the year?
Join CTS To learn
these and other
trading facts that can
help make you a
successful trader.
Futures Traders Helping Future Traders
