Good Books For Futures Trading

mikeyk

Member
Hi,

I dont really know much about futures but want to learn. Can anyone recommend any good books which would cover the basics of futures and trading them?

I'm really hungry for information, so any good ideas I can get my teeth into would be much appreciated.


Cheers


Mike
 
IMO trading futures is just like trading any other instrument, but the movements tend to be faster than stocks which can help you make money quicker and they can make you lose it even faster.

The only real difference is that you are trading contracts, so you buy and sell a number of contracts. You work out your risk and money management principles the same way as with stocks, etc.

The only difference is that you need to trade the correct month or quarter. Index futures such as the emini S&P (ES), emini Nasdaq (NQ), emini Dow (YM), etc, are divided into three-month contracts. These have letters assigned to them. H M U Z are the letters for the March, June, September and December contracts respectively. So we are currently trading H, which expires on Friday 19th March, a day which is called triple witching because futures, S&P options, and individual stock options come up for renewal. It's a volatile day usually, so just make a note in your diary, and avoid trading if you are new to the game, or feel unsure. The contracts roll-over (ie move onto the next contract) one week and one day before, so on Thursday 11 March (three days time) we shall move from H to M.

Those are the major differences - all the rest is just as you would trade any other instrument. So you don't really need any specific books, just sound trading principles.

Commodities and metals do have a few other quirks, but I presume that you are not referring to those in your question.
 

sandpiper

Well-known member
mikeyk,

Although Skim is absolutely correct, my feeling has always been that there is no harm at all in being as well informed as possible about the market/instrument you wish to trade. Whilst there is a mountain of information relating to futures trading on t2w, by it's very nature, it tends to be mostly confined to the mechanics or strategies of actual trading.

There are many purely factual guides to futures trading/markets, ranging from the freebies that the exchanges/your broker will send you, to more robust tombs. Personally, mine is "The Futures Game" by Teweles and Jones (about 25-30 quid) Decent value at 650 pages (if that's how you judge value... ;)).

It covers everything from markets, contract descriptions, government agencies, compliance, etc to money management and probability of ruin. It may be somewhat out of date at this time as I don't know what the latest revisions include, but it might be a start.
 

mikeyk

Member
Thanks very much guy's. Both of you have been very helpful. Just ordered the book from amazon.

Cheers
 

reckoner

Newbie
Try 'The Futures Game' by Teweles & Jones - it's the most comprehensive coverage that I know of.
 

mikeyk

Member
Trader_Dave

I was really pleased with the book. It did exactly as Sandpiper said. I would say its a good primer and gives you an overall picture of futures trading. It touches on TA but doesn't really go into it that much. It doesn't go into strategy or anything like that. I would definitely recommend it to those who want to get a good overall picture. You can then build upon this with other books which specialise in analysis, etc
 

drewfus31

Junior member
Good book for futures. If you want to learn about trading the Agricultural Commodities which are things that can actually be measured (great for us Ag-Economists). Try this book... Agricultural Futures & Options by Wayne Purcell/Stephen Koontz... It will give you a sense of WHY we have futures... "price discovery" for producers is outlined & explained well.
 

-oo0(GoldTrader)

Well-known member
Books


1. Trading Spreads and Seasonals
by Joe Ross


-oo0(GoldTrader)0oo-'s comments:
Best book for trading Seasonal Spreads. Joe introduces filters and how to use technical indicators. You should update to Lane's %D Stochastics. This is a trading manual not a book about trading.

2. Reminiscences of a Stock Operator Illustrated
by Edwin Lefevre, et al


-oo0(GoldTrader)0oo-'s comments:
Original 1923 source for the use and abuse of pyramids. Jesse shows you why and how to build pyramids. How to place orders, how to sell short, when to get out and how long to hold a position.

3. Seasonality : Systems, Strategies, and Signals (Wiley Trading)
by Jake Bernstein


-oo0(GoldTrader)0oo-'s comments:
Jake explains how Seasonal patterns are the heart of consistent profits in trading spreads. As long as summer follows winter we will have tradable cycles. Use with a clearer spread chart service.

4. Trade Your Way to Financial Freedom
by Van K. Tharp


-oo0(GoldTrader)0oo-'s comments:
SnowFight metaphor, Expectancy, Position-Sizing strategies

5. Spread Trading: Low-Risk Strategies for Profiting from Market Relationships
by Howard Abell


-oo0(GoldTrader)0oo-'s comments:
This is a Napoleon Hill of Spread trading book. It has interviews with spread traders, a Eurodollar spread floor trader, as well as with Steve Moore who publishes daily Internet spread charts.

6. Tricks of the Floor Trader: Insider Trading Techniques for the Off-the-Floor Trader by Neil T. Weintraub

-oo0(GoldTrader)0oo-'s comments:
Composite of ideas, systems and methods used by floor traders trading spreads. Primarily short term but includes longer-term seasonal trades. Like book “How young millionaires trade commodities.”

7. Futures Spread Trading: The Complete Guide
by Courtney D. Smith


-oo0(GoldTrader)0oo-'s comments:
Courtney Smith’s textbook is specifically and comprehensive about spreads. His whole book is about spreads and nothing but spreads. Probably the most useful from the fundamental perspective.

8. The Wisdom of the Ages in Acquiring Wealth
by Welles Wilder


-oo0(GoldTrader)0oo-'s comments:
The Wisdom of the Ages in Acquiring Wealth is THE textbook for "Wealth Acquisition 101!"

9. How I Made 2,000,000 in the Stock Market
by Nicolas Darvas


-oo0(GoldTrader)0oo-'s comments:
When prices move out of a narrow trading range, this often leads to an extended move in the same direction as the break. The box-breakout technique works well on all securities including Spreads.

10. New Concepts in Technical Trading Systems by J. Welles Wilder

-oo0(GoldTrader)0oo-'s comments:
Original work on how indicators help predict tops and bottoms.
mikeyk said:
I dont really know much about futures but want to learn. Can anyone recommend any good books which would cover the basics of futures and trading them?

I'm really hungry for information, so any good ideas I can get my teeth into would be much appreciated.
 

josbarr

Active member
"Don't Tell the Professionals"
by Keith Cotterill
 

osho67

Well-known member
Please recommend some books for trading index futures and trading options on index futures. -particularly us markets. Much appreciated. Thanks
 
If your after a good informative book on trading then don't go with "Don't tell the professionals"!

Watching their site over the last months I think they've tried everything bar giving it away to try and shift them.
 
mikeyk said:
Hi,

I dont really know much about futures but want to learn. Can anyone recommend any good books which would cover the basics of futures and trading them?

I'm really hungry for information, so any good ideas I can get my teeth into would be much appreciated.


Cheers


Mike

The Taylor Trading Technique by George Douglas Taylor. Hard to understand but if you can wade through and and read it about 5 or 6 times you can find some real gems for trading. Amazon has the book. I think Traders Press also.
 

josbarr

Active member
A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options

by Jack Schwager
 
 
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