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

Acknowledgments

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 Road Map
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 Capitalization
Overall Risk Management
Points to Remember
Chapter 3: Identifying the Trades and the Trading Vocabulary
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, Reversal M Top, and Flag in the EUR/USD
H&S Reversal Top and Three Continuation 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
Trading Record
Summary
Chapter 9: Month Two
Identifying Trading Opportunities
Amending the Plan
Trading Record
Summary
Chapter 10: Month Three
Sticking to the Plan in Choppy Markets
Trading Record
Summary
Chapter 11: Month Four
Trading Record
Summary
Chapter 12: Month Five
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 Seven-Month Double Bottom in AUD/USD
A 14-Month Coil and Nine-Month Descending Triangle in EUR/CHF
A Six-Month Wedge in EUR/USD
A 16-Week Horn in GBP/USD
A Four-Month H&S in Bottom NZD/USD
A Six-Month Ascending Triangle Failure in USD/CAD
An Eight-Month H&S Bottom in the S&Ps
A 14-Month Symmetrical Triangle in Sugar
A Seven-Month Triangle in Gold
A Series of Continuation Patterns in Copper
An H&S Bottom in Crude Oil
Summary

Postscript
Final Performance
Performance Compared to Other Benchmarks
Putting it in Perspective

Appendix A: Factor Trading Plan Signals
Appendix B: Quick Reference to Charts
Appendix C: Recommended Resources

Author’s Note
Index