The New Commodity Trading Guide by George Kleinman

The New Commodity Trading Guide

George Kleinman

Pearson Education 2009

New Jersey

This book describes a method of trading trends based on a variety of day trading strategies. I generally liked reading the book very much, and the timing in which I read it was perfect. I had finished reading this book in the early spring of 2010, just before the beginning of the big 2010 grain complex bull move. I was lucky enough to catch the very beginning of the market with oat futures, on the very day prior to when prices went limit up.

In the strong uptrend that followed in all the grains, I applied the technique described in this book successfully many times. I should mention that the technique that George Kleinman describes in the bulk of his book, only really works in trending markets. Otherwise, you just wind up getting jerked around (whipsawed) over and over.

In my own personal trading, I find myself applying the technique described in this book more in exits, than entries. I like the exit strategy, and I use it in combination with a sort of trailing stop on trades that move favourably. I also recall how the trading system works every time a trade goes against me, and I have to decide to quit it prematurely. I don't really like reversing the position of my trades. If a trade goes against me, I'll almost always just drop it.

George Kleinman's The New Commodity Trading Guide was a worthwhile read. It's not one of my top 3 favourite investing books, but I certainly don't regret reading it. It's very easy to read, and George Kleinman comes off as a good writer. The book was entertaining too, as he tells a few fun stories. This is a book that gives a slightly different perspective on trading than I like to employ, but I never the less extracted value from reading it.

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