Free Commodity Trading Course

Thank you for joining the Virtual Trading University email list. This is day one of the introductory course and you can click the link at the bottom of this page to move to day two.

Before you begin we would like for you to have a free copy of our 34 page Chart Pattern Secrets 2007 trade results.

Chart Pattern Secrets is our 63 page report produced in Adobe.pdf format. You can "RIGHT CLICK" the following link and select "SAVE" or "SAVE AS" to download the report to your computer.

Thank you very much for signing up for my Five day email course. It's designed to give the complete beginner an overview of how trading works and how to take advantage of part of the millions of dollars made each day!

If you are a more experienced trader, you will also find nuggets of information in this course that you can use in your own trading.

I also want to emphasize that there is much more to learn than what is in this introductory course. You should consider getting my full How To Succeed Trading Commodities course where I show you exactly how to trade based on my own successful trading career.

How To Succeed Trading Commodities is also much more than just words on paper. I give each student unlimited email support with me to help them get started trading with minimal mistakes. This part of my dedication to my students is invaluable because I will help you avoid many of the common mistakes that beginners and not yet successful traders make. These mistakes cost you money. In fact, just one mistake can cost you way more than the cost of my course! So don't ignore this part of my service to you.

Ok Friend, are you ready to learn how to make some serious money from the markets? It's all about leverage. Leverage is a small amount of money controlling a larger amount of money.

For the new trader who doesn't understand how the commodity markets work, I like to use a real estate lease option transaction to explain it because most people understand how they work.

Let's say Joe real estate investor has been searching his local real estate market for an undervalued home to purchase. Fortunately, he finds a house way undervalued and he knows he can make money on the home several months down the road. The problem is that he doesn't have enough cash to purchase and hold it until he finds another buyer.

He approaches the seller and makes an offer to lease the home for several months with the option to buy. Joe knows the home is worth $250,000 but the seller only wants $200.000. So Joe makes him an offer to lease the home for $1000 per month for six months.

If Joe investor is correct and sells the home for $250,000 within six months he made $50,000 less what he has paid in lease payments.

If Joe is wrong and he doesn't find a buyer or the real estate market goes down he loses his $6,000 lease payments.

Trader Friend, Commodity trading works much the same. Let's take the Corn market for instance. One futures contract in corn is 5,000 bushels of corn, and corn is traded in cents per bushel. A one cent move in the futures price equals 5000 X .01 = $50.00.

Now if the price of corn is trading at $3.00 per bushel, and there is 5,000 bushels of corn in one futures contract, that's $15,000 worth of corn.

However, we can use leverage to control that contract of corn much like Joe investor did with real estate.

Before I get too far ahead of myself let me explain exactly what a futures contract is. “An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future.” Futures contracts are transferable between parties.” Commodity futures very rarely lead to deliver of a physical commodity because positions are closed out before the delivery date. So don't worry about someone dumping 5,000 bushels of corn on your lawn!

“Futures Margin” is how leverage works in the futures market. Margin is simply a good faith money deposit with a brokerage firm. Brokerage firms set different margin requirements for individual markets, but the general margin deposit is around $500 for corn.

Now you can see the leverage. $500 can control one futures contract of corn ($15,000)

Let's say corn prices are trading at $3.00 per bushel. You've done your home work (Chart analysis, which you will learn about in another lesson) and you think that corn prices are going to rise to $3.50 per bushel.

You phone your broker and place an order to buy (go long) a futures contract of corn at $3.00. Now, you have put up the $500 to trade one contract of corn which is now controlling $15,000 worth of corn. Let's say corn moves up to $3.50 per bushel and you want to take profits.

You phone your broker, or set a predetermined exit order which we will speak more about on Day 2 of this course, to exit Corn. Your order is filled and you just made a $.50 cent profit. $50.00 X 50 cents = $2,500

That's leverage. You just took $500 and made $2,500 and you still have the original $500 in your brokerage account because it was only a good faith margin deposit placed there in case prices reversed just after you entered the trade.

But wait a minuet, Friend. Remember I said leverage works both ways!

What if we bought one futures contract at $3.00 planning for the price to rise, but it starts to fall instead! Well, you would lose $50.00 for every one cent that corn prices fall. Ouch, your good faith margin deposit would start declining $50 for every cent that corn trades below $3.00 per bushel.

However, there is no need to fear because I'll show in how to control the risk leverage tomorrow when we develop a trading plan.

Dear Friend, I hope you enjoyed lesson one. It's very important to understand leverage and how to use it for your benefit. More importantly, is how to control it when it's working against you, and we'll get to that tomorrow.

Chart Lesson Secrets is a fantastic education in trading showing you how to trade futures and options. This 315 page collection of chart lessons also contains 149 charts and 18 videos to show you the low-risk high reward way to trade. You can get your copy today for only $97.00

We know you will be thrilled with the superior quality of your VTU membership that we back it with a 100% refund guarantee policy.

CLICK HERE TO GET STARTED

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

==================================

Disclaimer and Disclosure of Risk Statement

All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.