Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading

Part I: Foundations of Successful Trading.

Introduction.

The Invention of a Commodity Trader.

Why I Wrote This Book.

This Book's Audience.

The Book's Roadmap.

Chapter 1: The History and Theory of Classical Charting Principles.

My Perspective of the Principles.

Three Limitations of the Principles.

Summary.

Part II: Characteristics of a Successful Trading Plan.

Chapter 2: Building a Trading Plan.

Trader Personality and Temperament.

Adequate Capital.

Overall Risk Management.

Points to Remember.

Chapter 3: Identifying the Trades and the Talk.

Trade Identification.

Vocabulary of the Factor Trading Plan.

Points to Remember.

Chapter 4: Ideal Chart Patterns.

Reversal H&S Pattern in Copper.

Reversal Rising Wedge in AUD/USD.

Continuation Wedge and Reversal Failure Top in Soybean Oil.

Reversal Triangle Bottom in Sugar.

Continuation and Pyramid Patterns in USD/CAD.

Reversal Top in Silver.

Continuation H&S Pattern in the Russell 1000 Index.

Continuation Rectangle in Kansas City Wheat.

Continuation Rectangle and Pyramid Triangle in Crude Oil.

Continuation H&S Top in the Dow Utilities.

Continuation Triangle and Reversal M Top and Flag in the EUR/USD.

H&S Reversal Top, a Continuation Pattern, and Two Pyramid Patterns in the GBP/JPY.

A Reversal Symmetrical Triangle in the AUD/JPY.

Two Continuation Patterns in GBP/CHF.

A Triangle and Running Wedge in Sugar.

An H&S Bottom in Apple Computer.

A Major Continuation H&S and Symmetrical Triangle in Gold.

A Series of Bullish Patterns in Copper.

A Failed Ascending Triangle in the USD/CAD Crossrate.

A 12-Week Rectangle in the Dow Jones Transport Index.

A Rare Horn in Brent Sea Oil.

An H&S Bottom Launches the 2009 Bull Market in the S&Ps.

Summary.

Points to Remember.

Chapter 5: How the Factor Trading Plan Works.

Trade Identification.

Trade Entry.

Trade Risk Management.

Trade Order Management.

Points to Remember.

Chapter 6: Three Case Studies Using the Factor Trading Plan.

A Remarkable Technical Event in the Dow Jones.

A Year Trading Gold.

A Year Trading Sugar.

Points to Remember.

Chapter 7: Characteristics of a Successful Trader.

Intimate Knowledge of Trading Signals.

Discipline and Patience.

Analysis of Self and of the Trading Plan.

It Takes a Leap of Faith.

Points to Remember.

Part III: A Five-month Trading Diary: Let the Journey Begin.

Chapter 8: Month One.

December 2009.

Trading Record.

Summary.

Chapter 9: Month Two.

January 2010.

Identifying Trading Opportunities.

Amending the Plan.

Trading Record.

Summary.

Chapter 10: Month Three.

February 2010.

Sticking to the Plan in Choppy Markets.

Trading Record.

Summary.

Chapter 11: Month Four.

March 2010.

Trading Record.

Summary.

Chapter 12: Month Five.

April 2010.

Relying on Classical Charting Principles.

Trading Record.

Outlook for the Future.

Summary.

Part IV: The Wrap-Up.

Chapter 13: Analysis of Trading Performance.

How the Trading Plan Performed.

How the Plan (and the Trader) Evolved.

Summary: Best Practices Going Forward.

Chapter 14: The Best Dressed List.

A 7-Month Double Bottom in AUD/USD.

A 14-Month Coil and 9-Month Descending Triangle in EUR/CHF.

A 6-Month Wedge in EUR/USD.

A 16-Week Horn in GBP/USD.

A 4-Month Head and Shoulders in Bottom NZD/USD.

A 6-Month Ascending Triangle in Failure USD/CAD.

An 8-month Head and Shoulders Bottom in the S&Ps.

A 14-Month Symmetrical Triangle in Sugar.

A 7-month Triangle in Gold.

A Series of Continuation Patterns in Copper.

A Head and Shoulders Bottom in Crude Oil.

Summary.

Postscript.

Appendix A: Factor Trading Plan Signals.

Appendix B: Quick Reference to Charts.

Appendix C: Recommended Resources.

Author's Note.

Index.