A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options by Jack D. Schwager

A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options by Jack D. Schwager

PART I

Preliminaries

CHAPTER 1

For Beginners Only

If a little knowledge is dangerous, where is the man who has so much as to
be out of danger?
—Thomas Henry Huxley

 Purpose of This Chapter

The focus of this book is on analysis and trading. Although these subjects are
explored in far greater depth than in most general commodity texts, the
presentation in the following chapters does not assume any prior knowledge
except for a familiarity with the basic concepts of futures markets. This
chapter is intended to provide a sketch of the background information
necessary to make this book accessible to the novice reader. The title of this
chapter should be taken literally. Traders who are already familiar with
futures markets should proceed directly to Chapter 2.
The introductory discussion provided by this chapter is deliberately brief and
does not purport to cover all background subjects. Topics such as the history
of exchanges, choosing a broker, and operation of the clearinghouse are not
covered because a familiarity with these subjects is unnecessary for the
analysis and trading of futures markets. Readers who desire a more detailed
discussion of commodity market basics can refer to a wide range of
introductory commodity texts.

A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options by Jack D. Schwager