COURSE SYLLABUS. Office Hours: One half-hour before class; during the week via

Transcription

1 COURSE SYLLABUS Course Title: Commodity Futures Trading Quarter: Winter Dates: 01/07/ /25/2014 Instructor: Ray Goldsmith Office Hours: One half-hour before class; during the week via Course Description: Let s Trade! This course presents the world of commodities and illustrates how some individuals and companies have consistently made money while others have suffered losses. The course is designed for anyone with a desire to understand more about the risk and rewards of commodity trading and how professionals decide to play a commodity up or down. Other financial professionals who are asked to evaluate commodity types of investments, such as CPAs, bank trust officers, and attorneys, can benefit. Participants learn the facts of these often misunderstood markets through classroom presentations, including guest lectures given by experienced traders and financial professionals. Topics include a history of futures and the exchanges; mathematical expectations behind many popular investing beliefs and "conventional wisdoms"; behavioral and emotional aspects of investing; orders, including entry and exit strategies, risk management, and measurement; income tax considerations; asset allocation and correlation studies; and an overview of data providers and software. Note: As an educational institution, UCLA Extension does not sponsor individuals for the Series 3 Exam. Goals & Objectives: Students should walk away from this course with a good understanding of the actual and emotional risks and rewards of trading futures and options in the commodity markets. Students will learn how to develop their own trading strategies based on sound research market techniques mixed in with what they already know. By the end of the class, the students will know what it feels like to win in the commodities market and lose in the commodities market.

2 Required Readings: Course Text: Hot Commodities: How Anyone Can Invest Profitably in the World s Best Market, Jim Rogers (Random House, 2004 ISBN: X) Recommended Readings: (Pick 3) The Wall Street Journal Guide to Understanding Money & Investing, Morris and Morris (Lightbulb Press ISBN: ) Technical Analysis of the Futures Market, John J Murphy (NY Institute of Finance, 1986) The Coffee Trader, David Liss (Ballantine Books ISBN: ). RN Elliott s Masterworks, The Definitive Collection, Edited by Robert R. Prechter, Jr (New Classics Library ISBN: ) (NOTE: This book includes the 1938 Wave Principle) Timing the Market, How to Profit in Bull and Bear Markets with Technical Analysis, Curtis M. Arnold (McGraw Hill ISBN: ) Using Technical Analysis: A Step-by-Step Guide to Understanding and Applying Stock Market Charting Techniques, Clifford Pistolese (McGraw Hill ISBN: ) Trading with Oscillators: Pinpointing Market Extremes Theory and Practice, Mark Etzkorn (Wiley Trader s Exchange ISBN: ) 100 Million Dollars in Profits: An Anatomy of a Market Killing and a Realistic Trading Plan, Kelly Angle (Windsor Books ISBN: ) NOTE: This book is about making money in the Gold Market The Psychology of Risk: Mastering Market Uncertainty, Ari Kieve, MD (Wiley Trading, ISBN: Art of War for Traders and Investors, Dean Lundell (McGraw Hill ISBN: ) Options on Futures: New Trading Strategies, John F. Summa and Jonathan W. Lubow (Wiley Trading ISBN: ) The Complete Option Player: 4 th Edition, Kenneth R. Trester (Institute for Options Research, Inc. ISBN: ) Trading Rules: Strategies for Success, William F. Eng (Dearborn ISBN: ) Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy by Matthew R. Simmons The Way of the Warrior-Trader: the Financial Risk-taker s Guide to Samurai

3 Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy by Matthew R. Simmons Beyond Oil: The View from Hubbert s Peak, by Kenneth S Deffeyes Taxation of Exempt Organizations (Student Edition), Hill & Mancino LINKS: Grading: Course grades will be based on participation and completion of assignments as follows: % Item 50 Class Participation 20 Mid Term Exam 20 Final 10 In-class Quizzes Please note that ALL COURSE GRADES ARE FINAL. Incompletes: The interim grade Incomplete may be assigned when a student's work is of passing quality, but a small portion of the course requirements is incomplete for good cause (e.g. illness or other serious problem). It is the student s responsibility to discuss with the instructor the possibility of receiving an I grade as opposed to a non-passing grade. The student is entitled to replace this grade by a passing grade and to receive unit credit provided they complete the remaining coursework satisfactorily, under the supervision of and in a time frame determined by the instructor in charge, but in no case later than the end of the next academic quarter. At that time, the Registrar will cause all remaining Incompletes to lapse to the grade "F". Note: Receiving an I does not entitle a student to retake all or any part of the course at a later date.

4 COURSE OUTLINE 01/07/2014 Week 1 Why are there commodities exchanges? History, Hedging Risk Let s start trading! 01/14/2014 Week 2 More Futures & Options technical tools to trade with 01/21/2014 Week 3 How do you trade oil and other energies Date/Topic Commodity Focus Readings Futures and Options HC: Chapter 1, 6, 7 HC: Chapter 2,3,4,5 HC: Chapter 8 01/28/2014 Week 5 Let s talk about softs, whatever they are? 02/04/2014 Week 6 Let s trade indices, bonds and treasuries better known as financials 02/11/2014 Week 7 Let s trade Metals! 02/18/2014 Week 9 Let s trade Grains! 02/25/2014 Week 8 Tradestation talks computerized trading platforms 03/04/2014 Week 10 What did I trade today 03/11/2014 Week 11 Next level of computerized trading 03/18/2014 Week 4 What else is out there? CTA, Hedge Funds, Managed Futures A Trading Style HC: Chapter 9, 10 Why computer trading and what do you trade? Let s make money with money. Let s trade forex! Let s trade Cattle and Hogs! Take Home MidTerm Midterm Due

5 03/25/2014 Week 12 Going over things you never understood during class Final Paper Due In-class final