Trading Commodities and Financial Futures: A Step-by-Step Guide to Mastering the Markets, Third Edition

Conclusion

That concludes our discussion of the basics. If this is your first exposure to commodity trading, you now know just enough to be dangerous. If you're a novice, hopefully this has shed some light on the game. If you've traded awhile, this is probably nothing new, but you'll find a lot of new and exciting stuff in subsequent chapters.

Let's conclude this chapter with a true story that happened to a commodity broker friend of mine. Remember, it is a common practice (and a good one) to place your stop loss order at the same time you place your trade. A good broker will remind you of this. There is a belief that the floor traders will “run the stops.” I'll talk more about this later in the book. However, I've found that the proper and judicious ...