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The 3Dimensional Trading Breakthrough

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Brian Schad<br />

to the individual placing the order on their personal computer. Without electronic<br />

trading, the commissions on stock trading are traditionally higher in price than<br />

the average commodity commission. In my opinion, this is because most people<br />

involved with stock “investments” require the expertise of a full-service broker.<br />

Commodity brokerage firms have their “version” of a full-service broker. However,<br />

I have yet to see or meet a full-service commodity brokerage firm that warrants<br />

“three-digit” commissions and are assisting their clients in making money.<br />

Many facets of this book can be seamlessly integrated into your stock trading –<br />

from a technical aspect. You, however, must still be a good “picker” of the correct<br />

stock and there are literally thousands of them. Good luck! <strong>The</strong> commodity<br />

markets, on the other hand, have a greatly reduced amount of underlying assets<br />

offered by the exchanges. Yes, there have been a lot more futures contracts<br />

introduce in recent years, but the commodity markets have only about 32 major<br />

commonly traded futures contracts, all divided into a finite amount of sectors -<br />

grains, livestock, food & fiber, interest-rate markets, currencies, precious metals,<br />

stock indices, and petroleum. That’s basically it. Your focus to make money is<br />

considerably narrowed into a small field that can be researched in full much, much<br />

easier than individual stocks!<br />

I don’t mean to discourage those of you who have been “die-hard” stock investors<br />

and traders, nor is it my intention to compare the two types of markets on the<br />

same criterion level - they are like apples (stocks) and oranges (commodities).<br />

However, the instruments that are used to trade these different markets are very<br />

much the same. <strong>The</strong>y have an underlying asset, call options, put options, and<br />

exhibit chart patterns for technical traders to analyze. This material will benefit a<br />

stock trader as well as a commodity trader.<br />

“If you think education is expensive, try ignorance.”<br />

- Derek Bok<br />

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