Trade Stocks and Commodities with the Insiders: Secrets of the COT Report (Wiley Trading) [Hardcover]

Larry Williams (Author)

Book Description

Publication Date: September 12, 2005 | Series: Wiley Trading (Book 247)

"The way that Big Money got to be Big Money was by also being the 'Smart Money', and so it is worth paying attention to how the Big Money traders behave. That's the essence of what Larry Williams has to teach us in this book. And it's not just what the Smart Money says or thinks, but how they behave in terms of their trading that we should pay attention to. Larry shows us how to listen to that message."
—Tom McClellan Editor of The McClellan Market Report

"Finally, an insider's take on what really goes on behind the scenes in commodity trading. Larry writes his view of trading, as only he knows it, from his twenty-five years of experience."
—James Altucher author of Trade Like a Hedge Fund

Successful trader Larry Williams reveals industry secrets that help investors and traders successfully invest and trade side-by-side with the largest commercial interests in the world. You'll be introduced to the COT (Commitment of Traders) report, the best resource for achieving trading success, learn exactly what the information it contains means, and plan for maximizing profits by acting on reported actions.

Editorial Reviews

Review

“This is an excellent and much needed book” (The Technical Analyst, Sept/Oct 2005)

"If you trade futures, this book will be a valuable addition to your trading library. Not only is the book a valuable education, but also an enjoyable read." - Futures magazine, November 2005

From the Inside Flap

Everyday, the true superpowers of the market influence the future price performance of various commodities through their buying and selling activities. These superpowers, more commonly known as "Commercials," are often household names—such as Pillsbury and General Mills, if you're looking at natural resource commodities, or Chase Manhattan when it comes to financial commodities.

Whenever these large and powerful traders make a move, they must leave behind a paper trail, due to the federal law that requires Commercials to report their massive trading activities once every week. This valuable information is then disseminated by the Commodity Futures Trading Commission through the Commitment of Traders (COT) report.

Now, for the first time, in Trade Stocks & Commodities with the Insiders, world-renowned trader Larry Williams reveals industry secrets that will help you align yourself with the billion-dollar traders and pools that move in and out of the marketplace each day. You'll be introduced to the best resource for achieving this goal—the COT—and learn exactly what this information means for you. Williams explains this reporting system in detail and lays out a plan that will allow you to maximize profits and manage downside risk by trading side by side with the largest commercial interests in the world.

Larry Williams has been following the smart money crowd for over thirty years, and with this guide, he'll show you who these people are and how to profit from their actions—whether you are interested in agricultural commodities such as soybeans or the new breed of financial commodities consisting of currencies, bonds, and stock market indices. While most market followers look at charts, Trade Stocks & Commodities with the Insiders will help you focus on the true market conditions that effect price change—large buying and selling as well as supply/demand pressure—which you'll be able to gauge each week with the COT report.

There is no master key that can unlock all the doors to successful price forecasting, but with Trade Stocks & Commodities with the Insiders as your guide, you'll discover how the proper interpretation of COT data can add substantial profits to your portfolio.

See all Editorial Reviews

Product Details

• Hardcover: 224 pages
• Publisher: Wiley; 1 edition (September 12, 2005)
• Language: English
• ISBN-10: 0471741256
• ISBN-13: 978-0471741251
• Product Dimensions: 9.3 x 6.3 x 0.8 inches
• Shipping Weight: 14.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (22 customer reviews)
• Amazon Best Sellers Rank: #314,904 in Books (See Top 100 in Books)

More About the Author

A welcome to my readers...

First and foremost I hope you are still finding value in my writings and want to thank you for reading. The royalties go to support the Max Wales scholarship at the University of Oregon. Max was the best professor I had...and this is just one way I have chosen to acknowledge him. The scholarship is to the School of Journalism so if any of you have kids going there let me know. Go Ducks!

I have a new book out, "confessions of a tax rebel" about my 12 year battle with the IRS. This certainly was the most arduous chapter in my life so far. The battle as well as how and why I got into it is fully covered in the book. It is kind of Indiana Jones meets the Department of Justice...the culmination was trial last year that ended---favorably---on the third day when all charges were dropped.

Wiley wanted an update to my 1998 book, "Long Term Secrets of Short Term Trading", that project was just completed and the new edition shud be out soon.

Lots of market stuff on my web page Ireallytrade.com and I will check in here from time to time

best wishes to all


Larry

Customer Reviews

Most Helpful Customer Reviews

33 of 34 people found the following review helpful:

5.0 out of 5 stars A Pro's point of view, November 14, 2005

By 

M. Hamilton (california) - See all my reviews
(REAL NAME)   

This review is from: Trade Stocks and Commodities with the Insiders: Secrets of the COT Report (Wiley Trading) (Hardcover)

I just finished reading Mr. Williams book. I do not know Larry and I have never taken any of his courses. This is the second book I have read by him and I loved it. It is interesting to read other reviews and how they like it or dislike it. Most of the opinions seem to be based on whether or not Larry's ideas mesh with their own view of the markets. I trade Bond futures short term, they fit my style. This book deals with a longer term horizon than what I am used to, but, I could'nt put the book down. In my estimation its easier to identify short term moves, yet Wall Street and the general investing public's obesssion lies in trying to guess where and when the markets next big move is going to come. As a short term trader, I can use the COT data he points out as a high probability set up to formulate my game plan. I want the best odds possible. Larry does a great job testing data with no assumptions to get real, usable data that could have a significant monetary value to your investments or trading by dispelling alot of commonly held beliefs about technical analysis. I am an avid student of Technical analysis and I think the Studies that Larry has conducted provide the BEST possible roadmap and probable direction of the markets ahead. Its up to the individual to use that information accordingly. Larry's COT indicators provide great setups. So now its time to think. How can you formulate a strategy based on your own game plan to capitalize on this scenario. If your looking for someone to tell you when to buy and when to sell, you're never going make and money in this game. Rmember what Henry Ford said. "Thinking is the hardest work there is, which is probably the reason why so few engage in it."

54 of 60 people found the following review helpful:

3.0 out of 5 stars Interesting discussion, some indirect sales pitch, September 21, 2005

By 

Sreeram Ramakrishnan (Lynnfield, MA) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: Trade Stocks and Commodities with the Insiders: Secrets of the COT Report (Wiley Trading) (Hardcover)

At first, skimming through the book was disappointing...There is virtually no discussion on trading stocks per se. The title is slightly misleading in that respect. However, if you are a commodity trader, it is likely that this book will reinforce some of the basics, and then provide additional insights into using the COT report to arrive at more "reasonable" trade decisions. A good portion of the introductory chapters deal with what the COT report contains and what to look for. Then, the author discusses the impact of actions of various groups' (commercials, being the primary group of interest) trading actions/biases. Issues related to volume, open interest, etc are dealt with interestingly. The central theme of the author does seem to advocate a very contrarian approach for most of the time, and the interpretations of the indicators he discusses support such an assessment. In addition, there is some indirect/subtle, not-so-annoying marketing of the author's products/website. However, the average investor who doesn't want to subscribe to any service that provides some of the "customizable" indicators the author encourages traders to use, may not find investing in this book valuable. But then, most commodity traders are 'sophisticated' and likely to have such services. In short, if you are a stock trader, avoid the book regardless of what the title says; but the book is valuable for a commodity trader or for someone who wants to understand some of the mechanisms involved in commodity trading.

18 of 19 people found the following review helpful:

5.0 out of 5 stars Valuable insights from a market master, December 17, 2005

By 

T. McGavin (Queensland, Australia) - See all my reviews
(REAL NAME)   

This review is from: Trade Stocks and Commodities with the Insiders: Secrets of the COT Report (Wiley Trading) (Hardcover)

In my opinion, this is Larry's best work yet. It is a trend-followers answer to retracement entries and gaining insight into which trends may be sustainable.

For stock traders, don't miss the point like some of the earlier reviewers did. If you are chasing beta, then this work will assist you. For example, many stock sectors will respond to a move in the underlying commodity, from the bond sensitives through to resource stocks.

With the growing importance of the trend followers to take markets to extremes, Larry's new work filters out the occassions when the commercials are not in control, ie, when they make up a low percentage of open interest.

All serious market participants should find this work insightful.