Trade Stocks and Commodities with the Insiders: Secrets of the Cot Report

by Larry R. Williams

Book Overview

"The way that Big Money got to be Big Money was by also being the 'Smart Money', and so it is worth paying attention to how the Big Money traders behave. That's the essence of what Larry Williams has to teach us in this book. And it's not just what the Smart Money says or thinks, but how they behave in terms of their trading that we should pay attention to. Larry shows us how to listen to that message."
--Tom McClellan, Editor of The...

• Format: Hardcover
• Language: English
• ISBN: 0471741256
• ISBN13: 9780471741251
• Release Date: August 2005
• Publisher: Wiley
• Length: 224 Pages
• Weight: 0.92 lbs.
• Dimensions: 0.9" x 6.2" x 9.1"

Customer Reviews

Finally a book that puts the COT report in the proper perspective

This is the first book that I've read that shows how to properly use the Commitment of Traders report. In simple language, Larry systematically walks readers through the use of the information contained in the COT report to set up trades -- he even discloses a new indicator that is much more powerful than any other index related to the COT report I've seen thus far. When I started using this indicator in my trades, I saw my profits soar. Definitely a must have for the serious futures trader -- whether an expert or a novice!

Trade Stocks & Commodities with the Insiders : Secrets of the COT Report (Wiley Trading) (Hardcove

This is the best book on trading and investment I have ever read, perhaps "Intelligent Investor" by Graham comes close. You need to read this book with the COT data downloaded, a laptop and excel and work through it, like a textbook. The work is worth it. It has lifted the veil from my eyes, other methods are very hit and miss. The oscillators described are the most powerful "Nonsense/Noise Filters" ever. Elliot Wave, Gann, Swing, Geometry are all fanciful notions with no predictive abiity on their own. Classical tech analysis, Candlesticks and RSI, Volume Analysis are necessary but not sufficient indicators. The only thing that works is the real fundamentals which are impossibe to get, so this book shows you how to follow those who do have them. Jim Rogers once said, "I never met a rich technician". Soros never mentioned technical analysis in his books neither did Buffett. There are so many talking heads, and doom and gloomers. CNBC is perpetually bullish, who to believe? The advice is sound and no nonsense. There is no religion or dogma in trading, what works is what works. This book is a classic.

Valuable insights from a market master

In my opinion, this is Larry's best work yet. It is a trend-followers answer to retracement entries and gaining insight into which trends may be sustainable. For stock traders, don't miss the point like some of the earlier reviewers did. If you are chasing beta, then this work will assist you. For example, many stock sectors will respond to a move in the underlying commodity, from the bond sensitives through to resource stocks. With the growing importance of the trend followers to take markets to extremes, Larry's new work filters out the occassions when the commercials are not in control, ie, when they make up a low percentage of open interest. All serious market participants should find this work insightful.

A Pro's point of view

I just finished reading Mr. Williams book. I do not know Larry and I have never taken any of his courses. This is the second book I have read by him and I loved it. It is interesting to read other reviews and how they like it or dislike it. Most of the opinions seem to be based on whether or not Larry's ideas mesh with their own view of the markets. I trade Bond futures short term, they fit my style. This book deals with a longer term horizon than what I am used to, but, I could'nt put the book down. In my estimation its easier to identify short term moves, yet Wall Street and the general investing public's obesssion lies in trying to guess where and when the markets next big move is going to come. As a short term trader, I can use the COT data he points out as a high probability set up to formulate my game plan. I want the best odds possible. Larry does a great job testing data with no assumptions to get real, usable data that could have a significant monetary value to your investments or trading by dispelling alot of commonly held beliefs about technical analysis. I am an avid student of Technical analysis and I think the Studies that Larry has conducted provide the BEST possible roadmap and probable direction of the markets ahead. Its up to the individual to use that information accordingly. Larry's COT indicators provide great setups. So now its time to think. How can you formulate a strategy based on your own game plan to capitalize on this scenario. If your looking for someone to tell you when to buy and when to sell, you're never going make and money in this game. Rmember what Henry Ford said. "Thinking is the hardest work there is, which is probably the reason why so few engage in it."

Pro trader's ammunition

COT report reveals some very interesting market correlation in currencies and commodities - at least according to my results. Do the testing and decide for yourself... Larry Williams spent over 4 decades of trading and if you read all of his materials you can see a succession of theory development and coherent market analysis. Market environment constantly changes - so techniques may change over time - but the underlying market principles don't change. Smart money is ahead of the latest fad and strategy that performs well in the current cycle - it's their game. This book tops my collection of 40+ books from all major trading materials - supported by patient study and backtesting. If you are a beginner you'll probably try to beat the market with some mathematical setup. Good for you... also do some sports betting since statistics and math will tell you everything you need to know - right? But once you experience few losses, emotional aspects of trading, understand capital conservation, and optimized money growth - you will eventually opt out for a more organic approach. You need some reliable information on market movers and shakers - it beats any mathematical system tested so far. COT reports are like X-ray goggles of the market - so be a market doctor and learn how to read setups. It may not happen overnight just like anything worth learning - and they may be interpreted differently in some cases - so learn how to manage risk. Also read some Smitten's books on Jesse Livermore. When Livermore was asked by his friend how to make quick money in the market - he replied: "How do you make quick money in brain surgery?"