byu71 or fmcoug

[Mormon Red Death]

What books would you suggest reading about in regards to futures and options trading. I would like to learn more about how those markets work and the techniques that people use

[BYU71]

I would make one bet though. After you have read the best books on the subject, 2 years later you will have lost your shirt following their advice.

[Indy Coug]

IMO, Joe Blow has no business messing with derivatives trading and even if they have a professional handling their finances, they should limit his use of them.

[FMCoug]

"McMillan on Options" by Lawrence G. McMillan is a pretty good primer.

I have also found the Options Industry Council site to have some pretty good stuff. There are tons of "Get Rich Quick" hucksters out there but this seems to be pretty good infor without a lot of hype.

http://www.888options.com/default.jsp

As others have said, tread VERY carefully. I do some options trading, but it's fairly conservative and I have spent a lot of time educating myself.

[Mormon Red Death]

IMO, Joe Blow has no business messing with derivatives trading and even if they have a professional handling their finances, they should limit his use of them.

I guess a simpleton like myself could never understand how the market works. Its best I leave it to the big kids like yourself

[Mormon Red Death]

"McMillan on Options" by Lawrence G. McMillan is a pretty good primer.

I have also found the Options Industry Council site to have some pretty good stuff. There are tons of "Get Rich Quick" hucksters out there but this seems to be pretty good infor without a lot of hype.

http://www.888options.com/default.jsp

As others have said, tread VERY carefully. I do some options trading, but it's fairly conservative and I have spent a lot of time educating myself.

this is the approach I would like to take. If I am gonna make it rich it will be by starting my own business. This really would be something I am interested in to learn about.

[Indy Coug]

I guess a simpleton like myself could never understand how the market works. Its best I leave it to the big kids like yourself

Umm.... I don't do any derivatives trading, but I'm familiar enough with them and various case studies about them to know they are not a good choice on the risk/reward scale for the VAST MAJORITY of individual investors.

[BYU71]

I guess a simpleton like myself could never understand how the market works. Its best I leave it to the big kids like yourself

doing it, the point I was making was I don't know of any individuals that get rich trading options and commodities. I am sure there are some, but they probably haven't written a book. Whatever edge they have in that speculative market they wouldn't want to give up.

If you had figured out a way to predict where a housing boom was going to occur every 6 months, would you write a book so everyone could figure it out?

[Indy Coug]

Did Colonel Sanders hand out 3x5 cards with his secret blend of herbs and spices? I don't think so.

[Mormon Red Death]

doing it, the point I was making was I don't know of any individuals that get rich trading options and commodities. I am sure there are some, but they probably haven't written a book. Whatever edge they have in that speculative market they wouldn't want to give up.

If you had figured out a way to predict where a housing boom was going to occur every 6 months, would you write a book so everyone could figure it out?

Well somebody has to be getting rich doing it. Otherwise why even have the market?

[Indy Coug]

Well somebody has to be getting rich doing it. Otherwise why even have the market?

Because it makes sense for some institutional investors, who have a lot more capital at their disposal and a much different risk profile than most individual investors. They also have a host of investment experts monitoring their investments and know when and how to react to changes in the market.

That said, even they can and do get burned badly.

Trying to do this on your own is really taking your life into your own hands. BYU71 can correct me if I'm completely smoking pot here or not.

[BYU71]

Option and commoditiy trades are done primarily as insurance hedges. You have a big long position in the market and you buy puts to hedge or insure your position. A Farmer wants to insure his corn crop so he hedges his crop with commodities.

Where there is a market there is the opportunity for the speculators to play that market. I have been in the business for 25 years and never have known anyone who made money over the long haul trading in commodities or options. Doesn't mean there isn't someone out there that has, but I don't know them.

I do know some who have read a book or bought a program to trade them and lost their shirts. As a matter of fact I know someone who just had to go back to work because he took a $500,000 hit using one of these failsafe programs. That is $500,000 on top of the $250,000 he made before he took the hit.

There is a difference between investing and speculating. Investing takes time and patience and you won't get rich quick.