How to Make Money in Commodities

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advance or decline. The trader who is correctly positioned can profit either way. All that is required is that prices do move -- up or down -- and the profit potential appears. While shoppers lament the high cost of living and Congress puzzles over economic policy, you can be acting, and smiling at the results. Up or down, the commodity speculator knows that price moves mean an exceptional opportunity for investment profit and a unique method for offsetting the high cost of retail goods and services.

      Sugar frequently turns up in our reviews of big winners. The September 1972 futures contract shows prices doubling from April of 1971 to January of 1972. The breakout from the old channel came in early October. After a month of testing the waters, prices could not be forced back and the way was open for a gigantic leap. Profit per contract according to the method: $4,256 in four months. The jump in January Plywood was similarly extreme. Calculate for yourself the profit easily available to the speculator in plywood, and you'll know why so many people are now getting into commodity trading.

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      You have now taken a close look at a dozen historical examples demonstrating how one trading technique can bring you astonishing profits in the futures markets. By this time, you should be able to tell quickly, by a glance at the price chart, whether a futures contract qualifies for successful method trading. You should also know now how to pick your buy and sell points, and how to set your stop-loss order. Turning to the years from 1973 through 1976, apply the tools and skills you have developed. Treat each example as if it were happening today, for these patterns and opportunities will repeat themselves indefinitely in the future. These were some of the most exciting, fabulously profitable years in recent futures trading history. Where would you stand financially today if you had been trading these markets?

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COFFEE: THE RUN-UP IN COFFEE PRICES BROUGHT THE FUTURES TRADER A 1,950 PERCENT PROFIT, OR $9,750 PER CONTRACT.

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FOREIGN CURRENCIES CAN BE TRADED WITH THE SAME BASIC PRICIPLES APPLIED TO FUTURES CONTRACTS IN WHEAT, CORN, OR ANY OTHER COMMODITY.
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SWISS FRANCS: POTENTIAL PROFIT IN TWO MONTHS WAS $15,000 PER CONTRACT.

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BARLEY: $500 IN DEPOSITED MARGIN MONEY RETURNS $6,250 AS PRICES NEARLY DOUBLE IN A MERE SIX MONTHS.

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BROILERS: A MAXIMUM PROFIT OF $4,912 ON A MARGIN OF $400, OR A 1,128 PERCENT RETURN ON INVESTED CAPITAL.

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HOGS: THE 32¢ RISE IN FUTURES MEANT A RETURN OF $9,600 PER CONTRACT, OR 3,200 PERCENT OF ORIGINAL MARGIN.

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	The incredible 1973 bull market in soybeans made headlines around the country. In just eight months, the July futures price soared from $3.50 to almost $13.00!!
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	Trading with the method, an average trader could have scaled-in purchases to accumulate enormous profits. Such a series could have typically yielded $224,000 on an original margin of $1000!!
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HOG PRICES SUFFER A REVERSAL. PROFITS ON THE SHORT SIDE WERE $5,400 PER CONTRACT, RETURNING 771 PERCENT ON A MARGIN OF $700.

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