The Professional Commodity Trader

Reprint of 1973 classic in which legendary futures trader Stanley Kroll describes his trading adventures and discusses philosophy.

It is a first person look-over-my-shoulder account of his trading campaigns during the wild and woolly markets of 1973, and a close look into his trading philosophy and techniques.

Kroll's primary focus is on trading only with the major long term trend, and he favors entering trades only during significant reactions against the trend, and holding positions until either his long term price objectives are met, his protective stop loss level is violated, or it becomes apparent that the primary trend has changed direction.

The book is filled with charted examples of Kroll's actual trades in various markets. He discusses at length the reasoning and timing behind the decisions involved in entering, adding to and liquidating each position. Most positions were idle for weeks or even months, which will be hard to imagine for today's quick in and out day trader.

Kroll quotes throughout from the classic Reminiscences of a Stock Operator, which chronicles the trading experiences and philosophy of immortal speculator Jesse Livermore. The key sections to which Kroll refers are those in which Livermore advises that the big money is in the big move, and that his biggest profits were made simply by sitting tight. Kroll kept a copy of Reminiscences at his desk at all times for inspiration, whenever he felt tempted to exit a profitable position prematurely or to try scalping the market for small moves.

Of special interest is the time period under study (1973) which was the wildest and most unforgettable year in memory. That's the year in which beans went from 400 to 1290 and back down to 500, wheat went from 140 to 645, and other markets made huge moves as well. While Kroll grabbed the bull by the horns and realized huge profits in these runaway bull markets, others cringed in fear and withdrew from trading, petrified by the risk inherent in huge moves consisting of strings of locked-limit days in both directions.

Kroll's narrative is made credible by the inclusion of a summary detailing the track record of 38 individual accounts which he managed during the 1971-73 time period, which shows 37 of the 38 with net profits, with most showing annualized returns well in excess of 200 percent. The one loser lost less than 2 percent. In the aggregate, about $600M of capital was parlayed into almost $3 million during this period.

The Professional Commodity Trader is fascinating reading for futures traders interested in formulating a viable, long term approach.

View More In Commodities.

Or Browse Our Catalog.

It’s a fair bet that most of what you think you know about oil prices is wrong. Despite the massive price fluctuations of the past decade, the received wisdom on the subject has remained fundamentally unchanged since the 1970s. When asked, most peo...

In Commodity Derivatives: Markets and Applications, Neil Schofield provides a complete and accessible reference for anyone working in, or studying commodity markets and their associated derivatives. Dealing primarily with over the counter structures,...

The absolute and relative performance of various asset classes is systematically related to macroeconomic trends. In this new book, Robert McGee provides a thorough guide to each stage of the business cycle and analyzes the investment implications us...

This book concentrates on the social and economic effects that metals have had on community life and on wider historical developments. It gives a fascinating perspective proclaiming that the history of metals is the history of civilisation; basing th...

This course contains one of two of Gann's greatest courses, the Master Time Factor Course. We know he considered it his most important course, by his original 1939 price being $2,500.00. This course has remained unavailable since the time Gann sold ...

Exposing students to post-traditional theory as well as to "operationalize" theory, this book clearly shows how they've been applied and with what impact. The book first covers the classical foundations of organization theory, beginning with rationa...

Sparked with wit and humor, this clever and insightful book provides clear evidence that the stock market is inefficient. In the author's view, models based on rational economic behavior cannot explain important aspects of market behavior. The book ...

A hands-on guide to navigating the new fuel markets Fuel Hedging and Risk Management: Strategies for Airlines, Shippers and Other Consumers provides a clear and practical understanding of commodity price dynamics, key fuel hedging techniques, and ris...

This pair of classic works, from master-analyst William Dunnigan, introduces and applies the renowned one-way formula--a complete technical trading system for stocks or commodities....

This book updates spread trade Mr. Angell originally published in 1980. Learn 20 specific trade strategies that have been proven successful in real-time. One Pork Belly spread has been 100% correct since 1972!...