Dien Rice
January 17, 2019, 06:12 PM
In the stock market, the only thing you can really control is your risk and I think that's what you're alluding to.
I'm not sure I follow what you mean by "Insiders". Commodities are not companies, there are no Insiders. Unless you mean someone with a deeper knowledge of why Coffee is priced where it's at and not higher?
Hi Samir,
I do know that sometimes people try to manipulate the markets, including for commodity futures. I don't think you can manipulate the markets long term, but you can do it short term...
Here's an article about this which recently came to my attention (the guy is now under arrest)...
'Tricks from the master': How a Sydney trader landed in the centre of US fraud bust
https://www.smh.com.au/business/markets/tricks-from-the-master-how-a-sydney-trader-landed-in-the-centre-of-us-fraud-bust-20180716-p4zruh.html
On the other hand, if you figure out how to trade commodity futures, you can become a billionaire.
John W. Henry is one such guy, now worth around $2.6 billion dollars, who made his big money in futures. He also owns the Boston Red Sox.
One thing which is not widely known is that early in life (before he was famous), John W. Henry worked for Harvey Brody as an employee. (We've talked a lot about Harvey Brody here...)
John W. Henry and commodities (Wikipedia)
* https://en.wikipedia.org/wiki/John_W._Henry
John W. Henry and Harvey Brody
* https://www.90min.de/posts/5123077-three-things-you-did-not-know-about-liverpool-s-owner-john-w-henry/3-he-never-got-his-college-degree
* https://books.google.com/books?id=ppZ8JF6eWEQC&pg=PA47&lpg=PA47&dq=%22john+w+henry%22+%22harvey+brody%22&source=bl&ots=PZKus-lHgB
(To my understanding, the above stories have it a little bit wrong, as Harvey Brody's book on blackjack to my knowledge was co-authored with Allen Goldberg. But, John W. Henry did work with Harvey Brody as an employee when he was in his early 20s or so, and undoubtedly learned some useful business insights while he worked for him...)
Of course, people don't usually reveal how to do it... If everyone knows, then it becomes less effective...
Another guy who knows how to do it is Paul Tudor Jones, who's now worth around $4.7 billion.
Paul Tudor Jones (Wikipedia)
* https://en.wikipedia.org/wiki/Paul_Tudor_Jones
If you want insights on how he does it, find the 1987 documentary about him called "Trader". Paul Tudor Jones tried to buy up all copies of this documentary, and remove it from circulation (speculation is that he feels he reveals too much in it). However - you can find it online - it's just difficult. (Yes, I've watched it.)
Best wishes!
Dien
I'm not sure I follow what you mean by "Insiders". Commodities are not companies, there are no Insiders. Unless you mean someone with a deeper knowledge of why Coffee is priced where it's at and not higher?
Hi Samir,
I do know that sometimes people try to manipulate the markets, including for commodity futures. I don't think you can manipulate the markets long term, but you can do it short term...
Here's an article about this which recently came to my attention (the guy is now under arrest)...
'Tricks from the master': How a Sydney trader landed in the centre of US fraud bust
https://www.smh.com.au/business/markets/tricks-from-the-master-how-a-sydney-trader-landed-in-the-centre-of-us-fraud-bust-20180716-p4zruh.html
On the other hand, if you figure out how to trade commodity futures, you can become a billionaire.
John W. Henry is one such guy, now worth around $2.6 billion dollars, who made his big money in futures. He also owns the Boston Red Sox.
One thing which is not widely known is that early in life (before he was famous), John W. Henry worked for Harvey Brody as an employee. (We've talked a lot about Harvey Brody here...)
John W. Henry and commodities (Wikipedia)
* https://en.wikipedia.org/wiki/John_W._Henry
John W. Henry and Harvey Brody
* https://www.90min.de/posts/5123077-three-things-you-did-not-know-about-liverpool-s-owner-john-w-henry/3-he-never-got-his-college-degree
* https://books.google.com/books?id=ppZ8JF6eWEQC&pg=PA47&lpg=PA47&dq=%22john+w+henry%22+%22harvey+brody%22&source=bl&ots=PZKus-lHgB
(To my understanding, the above stories have it a little bit wrong, as Harvey Brody's book on blackjack to my knowledge was co-authored with Allen Goldberg. But, John W. Henry did work with Harvey Brody as an employee when he was in his early 20s or so, and undoubtedly learned some useful business insights while he worked for him...)
Of course, people don't usually reveal how to do it... If everyone knows, then it becomes less effective...
Another guy who knows how to do it is Paul Tudor Jones, who's now worth around $4.7 billion.
Paul Tudor Jones (Wikipedia)
* https://en.wikipedia.org/wiki/Paul_Tudor_Jones
If you want insights on how he does it, find the 1987 documentary about him called "Trader". Paul Tudor Jones tried to buy up all copies of this documentary, and remove it from circulation (speculation is that he feels he reveals too much in it). However - you can find it online - it's just difficult. (Yes, I've watched it.)
Best wishes!
Dien
