Courses 1Lesson 1

The Three Categories of Players in the Futures Games and their Roles -------------------- 7

Producers ---------------------------------------------------------------------------------------- 7

End-Users --------------------------------------------------------------------------------------- 8

Speculators -------------------------------------------------------------------------------------- 8

Why Traders Trade -------------------------------------------------------------------------------- 9

Additional Uses of the Futures Markets -------------------------------------------------------- 10

Dealing with Basic Issues First ------------------------------------------------------------------ 11

How Will You Achieve Your Goal? -------------------------------------------------------------- 11

The Vehicle ------------------------------------------------------------------------------------- 11

The Fuel ---------------------------------------------------------------------------------------- 12

Don’t Borrow Your Starting Capital ------------------------------------------------------------ 12

Reach Your Goal in Stages ----------------------------------------------------------------------- 13

Other Important Issues --------------------------------------------------------------------------  14

Trade Alone or With a Partner? --------------------------------------------------------------- 14

Too Many Cooks Spoil the Broth------------------------------------------------------------- 14

Who’s Responsible? --------------------------------------------------------------------------- 14

Sharing the Profits ----------------------------------------------------------------------------- 14

Do You Want to Share Your Research? ------------------------------------------------------- 14

Slower Decision Time ------------------------------------------------------------------------- 14

Trade for the Short Term, Long Term or Immediate Term? -------------------------------- 14

Factors You Should Consider in Making this Decision --------------------------------------- 15

Trading System -------------------------------------------------------------------------------- 14

Time Availabiltiy ------------------------------------------------------------------------------ 15

Commissions----------------------------------------------------------------------------------- 15

Personality ------------------------------------------------------------------------------------- 15

Health ------------------------------------------------------------------------------------------ 15

Data --------------------------------------------------------------------------------------------- 15

Fundamental or Technical ----------------------------------------------------------------------- 15

How Much Risk do You Want to Take on Each Trade? -------------------------------------- 16

Lesson #1 Quiz --------------------------------------------------------------------------------17 - 18

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C1L1-3

© 2000 MBH Commodity Advisors, Inc.

Jake Bernstein’s

Course #1 -- Basic Training/Getting Started