Customer Reviews

A Trader's First Book on Commodities: An Introduction to The World's Fastest Growing Market

5 star:		(21)
4 star:		(23)
3 star:		(6)
2 star:		(1)
1 star:		(3)

 

 

On a 1-10 scale I would give my own knowledge of stocks a 7, bonds a 5 and commodities a 3. I am in the steel business, but steel is not traded like a commodity (though there have long been efforts to change that). I understand the general theory of how the commodities markets are supposed to work, but I ordered this book because I wanted to get a deeper understanding of how they function on a day to day basis. I was very pleased with the scope of this book and would recommend it to people who are considering getting involved, in a modest way, with commodities.

Please note though that one book, no matter the author's skill or breadth of knowledge, is NOT capable of turning anyone in to a professional commodities trader. Some of the negative reviews are both amusing and scary because they seem to be written by people who figured that they would just buy X commodity and suddenly become millionaires. I guess every market (and poker) relies to some extent on Darwinism - it's the amateurs that end up making the pros rich.

I think that Ms. Garner manages to successfully steer a course down the middle in terms of providing enough broad, general, information for newbies, while still including some actionable technical information which would allow you to start trading immediately (if unsuccessfully).

At the end of the day, commodities trading isn't for me. Between a full-time job I don't have the time left to devote hours and hours to do the research that might possibly allow me to be a successful dabbler in commodities. Nor do I have the ability to constantly watch the markets to catch the rapid rise and falls that provide brief trading opportunities. This book helped to convince me that commodities trading is best left to others. It is this conclusion that perhaps is worth far more than the purchase price of this book.

"A Trader's First Book on Commodities" is an overarching introduction to the US commodities futures market. Everything from contract size and pricing to choosing a broker is covered. Unfortunately the author covers each topic in such poor depth that I would only recommend this book to someone completely unfamiliar with commodities and futures contracts.

I approached the book expecting to be firmly within the target audience, given the title. However any trader, even one without experience in commodities, would find little of value in this book. Furthermore, I cannot imagine this book helping anyone make money trading commdities. The author makes no attempt to discuss research, data, analytics, mathematics, stochastics, etc. Some of the 'facts' brought up are even dismissed by the author as mere guesses. For example, the author mentions that the top 20% of brokers bring in 80% of the commissions, with the caveat that this estimation has absolutey no basis. Isn't it the role of the author to do research and present information that is both relevant and accurate?

On the positive side, the book is exceedingly approachable. The author makes a great effort to organize the book sensibly and to spell out every detail. I've seen similar books that gloss over too much terminology and get bogged down in too many ill-conceived attempts at explaining the technical aspects of trading. "A Trader's First Book on Commodities" proves a quick and easy read. I imagine it could be a great introduction into the world of commodities or finance in general for the completely uninitiated. Still, the shallow depth (even for an introductory text) is a major negative.

As the price is much lower than the more substantial textbooks I've read, I would recommend this book to those interested in the idea of investing in commodities but unsure what that entails. However, for those serious about investing or with some background in finance, I would suggest looking for a book that offers more technical knowledge and provides serious research and complete examination of individual markets.

Just like stocks - you can trade on fundamentals or on technicals & psychology
- Fundamentals as in What affects cotton prices ? Which are the international markets, consumers, producers, plant diseases, climatic conditions... how to sense the demand ... Can be a huge thesis in itself.
- Technicals as in Charts, moving averages, Candle stick charting (Infact Candle stick charting first originated from Rice trading in Japan in the 1800s)

Well, that is not what this book is about - this book is exactly what it says in the title - it is an introduction to what you are getting into, what you need to be cautious about and what are the different terminology, futures, options, hedging.

The book starts off on a cautious note on the rise of Commodity prices in 2007-2008 and the crash there after - the F&O market led the oil prices spike to $147 in mid of '08 and came crashing to $31 in less than an year. Nobody could have predicted this and traders whom we see on CNBC are probably who have just caught this by a streak of luck rather than intelligent predictions - so for most of us, it is better to be conservative and hedge our risks and play by emotional discipline rather than moving with bold predictions.

Then the book gets into details of hedging risks, 5-year, 10-year notes, bit on the technical analysis, then about individual commodities.

Overall, if you are starting off on commodity trading - this is definitely a book to begin with and you will end this book with a thirst to read more

This book does a great deal to demystify the concept of commodities trading and I found the use of non-technical jargon refreshing; however, if you're looking for a book that is cheery and full of "good going" accolades, look elsewhere.

This isn't to say the author is negative, but she tells the cold, hard truth - many lose money playing commodities (with 90% of options expiring as worthless) so tread lightly and at your own peril.

The only down side to this book is the price. At $35 it's probably overpriced by about $10, especially compared to other similar books.

Ms. Garner has produced an excellent primer on commodities and commodities trading. It is aimed at people thinking about or beginning to trade commodities and options either through a broker or with an online platform. Her instincts as a licensed broker show through as she hedges her information with warnings of the inherent risks of the enterprise.

This book is not a thriller, and some will find it "work" to keep reading through the beginning sections which explain the history and functioning of commodities markets, setting up accounts and choosing a broker, the many types of orders, how to handle margin calls, and the sizing and margin requirements of the more popular commodities futures. If the reader invests the time and mental effort to learn this material, however, he or she will have a strong foundation on which to begin to build a trading plan.

The book then moves into more engaging topics, including the psychology of trading, the need for a trading plan, and the ultimate decsion of whether to become a commodities investor/speculator. The book includes a great glossary of trading terms, including industry jargon.

I believe the author accomplishes her purpose very well. I would encourage her to wait a few years and then publish a second edition which incorporates emerging trends in commodities markets and the ever more amazing online trading platforms which put retail traders in a strong position vis a vis institutions.

Then... look into future trading but read this book first to decide whether this is your kind of an activity.

I began my reading as a skeptic because, let's face it, there aren't too many truly useful tomes that would actually help a would-be speculator as opposed to trying to sell some specific 'system' or selling the reader some narrow market philosophy or simply filling a couple hundred pages with mostly platitudes and truisms. But Carley Garner's book is one of the few exceptions in my view.

Not necessarily a 'how to' guide, even though there is some 'meat' when it comes to commodities and financial futures or order types, Ms. Gartner produced a cool, level headed, intelligent primer on trading futures that almost any aspiring individual trader should find useful. While, obviously, an experienced and successful market analyst and broker, the author is capable to come down to the beginner's level and provide the reader with the ABC's and with good advice without sounding condescending or patronizing.

The book starts with a brief history of commodity exchanges and an explanation of why future trading is needed beyond making the speculators rich or bankrupt and then it goes, step by step, into presenting the fast-paced, highly-emotional, risky, sometimes profitable world of 'futures'. We are given an overview of the trading pit, she discusses the merits of trading platforms vs. brokers, provides good advice on how to pick a brokerage firm and a broker, the mechanics of trading, what to do when you get a margin call (don't panic) and even the 'why' are some of us doing it in the first place.

I find this book useful because the author's calm and intelligent dissection, analysis, illustration and presentation should help readers make an informed decision on weather they have what it takes and whether this is something that they would really want to do. To the extent that the vast majority of readers will find that the answer was 'no', a lot of future grief can be saved by reading the book first. To those who WILL go ahead, books such as this one are only the first step on the ladder they must climb but a necessary step because the book sketches (I didn't write 'paints' for good reason) a realistic image of what to expect.

Reading "A Trader's First Book" left me with the impression that the author is genuinely and honestly trying to be as helpful as she can possibly be. This and her presenting the subject matter in a very readable prose makes the book a useful read and a good read. And... remember this should be the trader's FIRST book.

As a "First Book on Commodities" I found this to be too in-deptch and advanced for someone who has a more casual interest in commodities. The information is there and it's good, but as someone who has an interest but is by no means an active or professional trader it was more advanced than I thought it would be. So my review is mixed because I thought it was going to be more of a layman's book but it really is for more professional audiences imo.

It was an eye-opening experience for me to learn the basics of commodities and how to trade in them after reading this comprehensive primer. Interestingly, the knowledge of commodities will help one to understand the general market behavior and also predict how some stocks may trend in near future.

This book is written in a well-descriptive and explanatory fashion with plenty of examples and charts. This definitely helps to explain, esp. when the reader is new to this topic. Also, you will get the most out of this book, if you have a good understanding of stock market, and an operational knowledge of trading. There are new terms which you'll learn and also find a different context of the originally known stock-market terms in commodities context.

I'd refrain from summarizing the key points from this book, as there were plenty of new things to learn for me. I do recommend to read this book and delve into interesting world of commodities, if you are serious about investment.

While this book does a good job in explaining the details of trading commodities, I find that it's primary benefit was to convince me that direct commodities trading is not for me. I'm a very active options trader and still feel uncomfortable with direct investment in commodities.

This is not a simple book because it is not a simple subject. There are a lot of things to remember and much of it is not intuitive, as commodities have been traded long before standardization and electronic trading came along. As a result of a lot of the history, different commodities have different pricing structures, different sizes, etc. It's just more than I care to keep up with when I can just invest in an ETF or hire a CTA.

Walking away from the book, I do not feel like I could trade commodities competently even if I understood everything in it. That said, there is value in understanding these concepts if you decide to go the ETF route and ESPECIALLY if you decide to go the CTA route. The knowledge you gain here may well keep you from getting ripped off from a bad broker.

Far from a "Commodities for Dummies," Carley Garner's book assumes a good deal of reader sophistication when it comes to financial terms and concepts. The book seems aimed at skilled amateur stock traders who want to branch out.

At times -- and probably of necessity -- this reads like a textbook, with plenty of gray pages and even grayer charts. Casual readers looking for a primer probably should look elsewhere.

The author does make attempt to brighten things up with a quip here and there. For example, one chapter is headlined: "Making Cents of Commodity Quotes."

Garner works hard to make sure the reader understands how these markets rose up, history explaining some of their curious procedures and terms such as "pork bellies."

She walks readers through typical margin calls and spends a chapter on the emotions of trading. She also warns right from the start that commodity trading is not for most people.

CNBC "Fast Money" viewers will be thrilled to find a clear explanation of the "contango" -- alas it has to do with the cost to control a commodity and nothing to do with the dance.