You Can't Lose Trading Commodities [Unbound]

Book Description

The only book you need in your commodity trading library. This trading method was first published in a small pamphlet in 1975. The interest generated by this publication prompted the author to publish this system in book form in 1980. Each subsequent edition of You Can't Lose Trading Commodities contains additional information relevant to the commodity trader in general, and to the Scale Trader in Particular. Because of its simplicity, the trading method is explained in only a few pages, making it ideal for people who have never traded commodities before; yet, large corporations use it to make millions of dollars in profits annually. This book starts with the best primer ever written as an introduction to commodities trading, then explains the trading method. It expands into detailed discussions of interest rates and the Federal Reserve, the current danger within the stock market, and guidelines for people who want to become commodity traders. It concludes with a chapter of specific recommendations which can start you with immediate profits. Read Bob Wiest's all-time # 1 bestselling commodity trading book and become a winner!

Product Details

• Unbound: 362 pages
• Publisher: Wichita Eagle and Beacon Publishing Co.; 6 edition
• Language: English
• ISBN-10: 0965111105
• ISBN-13: 978-0965111102
• Product Dimensions: 8.3 x 5.4 x 1.3 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 3.6 out of 5 stars  See all reviews (10 customer reviews)
• Amazon Best Sellers Rank: #1,969,001 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

13 of 13 people found the following review helpful:

3.0 out of 5 stars Stocks can go to zero, but commodities cannot!, February 4, 2003

By 

-oo0(GoldTrader)0oo- (Honolulu) - See all my reviews

Amazon Verified Purchase

This review is from: You Can't Lose Trading Commodities (Unbound)

Master Wiest shows that with proper position sizing you can consistently make profits even if you let losses run and cut your profits short.

Wiest's trustee on trading commodities centers around a money management technique known as Scale trading.

Scale trading technique involves accumulating a commodity as its price declines and selling as prices rebound. You will be holding a long position with no stops when the seasonal cycle bottoms.

Stocks can go to zero, but commodities cannot. Low prices reduce supply as costs make it unprofitable to produce a commodity. The lower prices causes users to substitute this commodity for others increasing demand and raising prices.

Scale trading involves placing your orders ahead of time to buy at increments down and selling on resting orders at prices slightly above costs.

Because you take your profits quick and increase your losing positions, there may be long periods of time when you are sitting with losses and short periods when you have profits.

Wiest's position sizing technique is how he pulls consistent profits out of scale trading.

Letting your losses run and cutting your profits short uses a relatively large amount of capital to produce modest consistent gains.

The number of contracts traded in a Scale Trading system, fluctuates in accordance with each market's volatility.

After catching the absolute bottom which Wiest often does he always gets out before the market makes its real move.

A simple trailing stop instead of scaling resting orders would catch the rest of the seasonal move.

Like many successful trading techniques, scale trading is intended only to supplement your ordinary income, not to replace it.

---o0o---

15 years before my copy of Wiest's book was written, Jim Sibbett taught us to Scale Trade Bear Spreads in bull markets. We would put our resting orders in resistance using volatility to determine our position size. Whenever there was a reaction to the major trend our resting orders just above support would cover our spreads at a profit. It worked every time but once. Almost 100% winners.

Wiest's system is based pretty much on how he got into this business. Wiest was modifying a breakeven gambling system to trading commodities overcoming his instructional programming as a broker. Wiest can sit with paper losses for long periods of time knowing that commodity prices will come back because of the effects of supply and demand.

Wiest explains his system of scale trading against a massive overview of commodity trading. There is a lot of useful material here for the new or experienced trader.

Wiest has a very good chapter about selecting a commodities broker. If you are choosing a broker this chapter alone could be worth the price of the book.

My 1994 copy was written pre-internet. At that time Wiest depended on brokers for Research. This was an unwise thing to do. Successful traders no longer depend on brokers for Research.

Wiest's physical book itself is excellent. Stitched pages, better than most. He had to write his own bible to educate his clients. Nicely done. Wiest's Gold lettered cover feels like leather. First class, all it is missing is a ribbon.

---o0o---

Spreads!

Wiest does not discuss a technique in which you use spreads on the way down.

First off, Scale trading is not going to work if you start at the seasonal bottom. You need lower prices after you start the campaign to build up some inventory.

Scaling in longs on the way down by its nature accumulates losses.

By using spreads to hedge your long positions on the way down, you can reduce your drawdowns and increase your profits.

Instead of leaving resting orders to liquidate your long positions when your spreads are filled. You must keep track of and place your resting sell orders at the same time that you take profits on the short side of your spreads.

Your remaining long positions offer you no more risk than you would have had if you had not used spreads.

8 of 8 people found the following review helpful:

4.0 out of 5 stars Very interesting reading for a unique approach., February 19, 1999

By A Customer

This review is from: You Can't Lose Trading Commodities (Unbound)

I personally could never attempt this trading approach, but I recommend it for reading because I think it is important for a trader to gain different perspectives. Mr. Weist was successful as a money manager and trader in applying this unconventional but proven "scale trading" methodology. He provides clear examples and many of his own interesting experiences.

7 of 7 people found the following review helpful:

4.0 out of 5 stars An interesting and completely different trading book, September 5, 1998

By A Customer

This review is from: You Can't Lose Trading Commodities (Unbound)

If you don't know what this book is about type 'scale trading' into a search engine. For anyone intersted in this approach this is the classic must read book. I found it fascinating and nearly used this as my trading approach. Why didn't I? Because I knew that I couldn't handle the drawdowns (read- losses!)that the system involves. If you have nerves of steel this is a great way to achieve an average of 25 - 50 % a year.

By the way , the 2nd half of the book is just the author ranting about how the NFA done him wrong. An interesting read , but not relevant so you could skip it.