Jim Cramer invited experienced commodity broker and futures market analyst, Carley Garner, to share her thoughts on commodity indices such as the Goldman Sachs Commodity Index and the Dow Jones Commodity Index for the October 18th episode of Mad Money on CNBC.
In this book on commodity trading, experienced commodity broker Carley sheds light on topics rarely discussed in futures trading books. Here is a sneak peak of what it has to offer. This video scratches the surface of the following topics:
* Is the trend really your friend?
* Swing trading - "Buy" fear and "sell" greed
* Rethinking stop loss orders and risk management
Garner delivered a speech focused on the advantages of speculating in futures relative to alternative vehicles such as stocks or ETFs. We'll post video footage once available!Read More
Have you always been interested in algorithmic or automated futures trading, but did not know where to start? Join commodity broker and author, Carley Garner of DeCarley Trading, and trading contest champion and full-time trader Kevin J. Davey as they introduce you to the world of algorithmic and automated trading.Read More
Beginning commodity traders tend to migrate to the practice of trading futures contracts as opposed to options due to their simplicity. After all, a futures trader has the ability to place a stop loss order, he can easily determine his profit and loss with absolute certainty based on incremental price movements, and he has nearly 24-hour liquid market access. However, there are some flaws in this thinking.
For starters, stop loss orders arguably cause more harm than good in some scenarios. If this statement is confusing to you, imagine being stopped out of a short e-mini S&P position on the evening of June 24th near 2119 only to watch the market crater seconds later by 120 points! Not only would the trader have likely taken a steep loss, but the emotional trauma of missing one of the best short trades of a lifetime wouldn’t have sat well with the trader either.
"Higher Probability Commodity Trading" is Carley's fourth effort, and arguably her finest. Dan Dicker, the author of "Shale Boom, Shale Bust" calls it the 'bible" of futures trading. Phil Flynn, a FOX Business news contributor called it her masterpiece, and Jon Najarian believes it should be on your shelf!
"The commodity trading industry is starved for easy-to-read and entertaining, futures and options trading books focused on translating the complex derivatives markets. My fourth book on commodities, Higher Probability Commodity Trading, aims at bridging the gap between sophisticated futures and options traders, and the “average Joe”. Enjoy!" - Carley Garner
"Currency Trading" guides readers through the smoke and mirrors known as the FOREX markets and points traders to better methods of currency market speculation.
"Carley discusses many alternative market concepts and views such as option selling techniques, hedging futures positions with options and even combining fundamentals, seasonal, sentiment, and technical analysis to gauge market changes."
"Carley mentions that option trading is done at a slower pace than other assets such as Forex, stocks, and futures. 80% of options expires worthless. We also discuss option selling, a way to make money on a higher probability with unlimited risk. As an option buyer, the risk is limited but the probability of making a profit is smaller. There are loads of valuable advice in this episode. Carley has the experience and lessons needed." - Etienne Crete
In this interview, Carley Garner touches on some of the ideas she expands on in her latest book, "Higher Probability Commodity Trading".Read More
Topics discussed in this interview include the efficiency of trading oil futures relative to crude oil ETFs, the correlation between the US dollar and oil prices, and the direction crude oil prices might travel through year's end.
*If you own one of Carley's books, bring it along and she will sign it!
Experienced commodity broker and frequent contributor to Jim Cramer's Mad Money, Carley Garner, will present to a live audience at the Brookfield IL public Library on December 10th, 2016 at 11:00 am. Carley has recently released her fourth book titled "Higher Probability Commodity Trading" and will be discussing many of the hard lessons detailed in her book and learned throughout her career, which has spanned well over a decade.Read More
A covered call strategy is often considered a relatively conservative approach to stock market investing because it offers traders additional portfolio income and a hedge against downturns. However, traders hoping to simply apply the same approach to the commodity markets might be surprised. Due to logistic and mechanical differences between the stock and commodity markets, it is imperative that the traditional covered call strategy is modified for use in the commodity markets. Join us to discuss the necessary modifications to a covered call strategy to make it appropriate for commodity traders, how to calculate profit, loss, and risk, and tips and tricks to proper strategy development.
*Many topics discussed in this video are featured in Carley Garner's new book on commodity trading, "Higher Probability Commodity Trading."Read More
The strategy of writing covered calls against a stock portfolio is a popular investment strategy assumed to provide long-term investors with additional income and a dash of conservatism. However, those who attempt to recreate the strategy in the futures and options markets are often dished a rude awakening. Due to natural leverage built into the commodity markets, the typical covered call strategies must be modified. Join us on August 2nd to discuss the practice of selling call and put options against antagonistic futures positions as a means of premium collection.
*Many of the topics discussed in this video are featured in Carley Garner's newest book, Higher Probability Commodity Trading!Read More
"A great read for both beginner and advanced commodity traders. Carley nails the seemingly impossible task of leveling the playing field by imparting vital concepts in easy to digest bites ...she doesn't leave out the harsh realities and heartbreak many overzealous speculators face." -- JON NAJARIAN, co-founder NajarianFamilyOffice.com
"I love the book... it's an MBA in trading for the price of a few cups of Starbucks! I have been in financial markets for 30 years and I learned many new strategies and ideas...Bravo!" -- Tobin Smith CEO & Founder Transformity Media Inc., Former Co-star of Bulls and Bears on Fox News
For additional information on Garner's latest title, visit www.HigherProbabilityCommodityTradingBook.com!Read More
The practice of option selling is a controversial strategy for commodity option traders to partake in. Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. However, there are a limited number of brokerage services that recognize despite the challenges of option selling, it likely offers the highest long-term prospects for successful trading. Accordingly, such brokers give their clients the freedom to implement a short option strategy. We are a part of the minority commodity brokers that believe our clients should be given the opportunity to sell options without hassle. Nevertheless, option selling is far from an “easy-money” venture; there is a reason many brokerage firms shy away from option selling.Read More
Nevertheless, there are some compelling arguments to suggest that option sellers face favorable odds of success over option buyers, or outright futures traders. But, even putting the odds in your favor doesn’t guarantee a favorable outcome. Here are some aspects of option selling that should be considered before employing a premium collection strategy.Read More
*This article is an excerpt from Garner's latest futures and options trading book, Higher Probability Commodity Trading book by Carley Garner.
CONTROLLING FUTURES MARGIN WITH NET DELTA
The most common question I receive from beginning traders is, “What do I do if I receive a margin call?” The answer is simple: Don’t panic! In most situations, there is usually an easy fix to alleviate a margin problem that doesn’t involve wiring funds or offsetting trades at unfavorable prices.
Ideally, margin call avoidance is the best policy. However, even the most responsible traders will encounter the predicament sooner or later. Rather than simply throwing in the towel and liquidating positions or adding additional funds to what might become equivalent of a money pit, there are an unlimited number of ways to influence the exchange-required margin in your favor via risk reduction, or at least the perception of such. Naturally, lower risk equates to lower margin and, in most cases, lower profit potential, but for those who find themselves in a dire margin situation, beggars can't be choosers.