Ken Roberts Review

For many years, Ken Roberts has offered a commodities trading course called "The World's Most Powerful Money Manual" (TWMPMM).

When I purchased the Ken Roberts' course back in the late 90's, it came with a book and a series of tapes. I understand it now comes with videos as well. The material was pretty good, but a bit overpriced in my opinion (it was around $150 when I purchased it), since you can learn similar techniques from any number of books.

Ken Roberts' approach to trading commodities futures contracts basically relies on technical analysis. For those not familiar with this term, technical analysis is an approach to trading where you base your decisions solely on information obtained from charts. Whether or not technical analysis is a valid way to choose stocks or commodities has been a controversial topic for many years. I happen to think there is some validity to technical analysis, but don't recommend relying on technical analysis alone to make trading decisions. Most of the technical analysis techniques taught in Ken Roberts' course are pretty classic information you can find in other books. One technique, for example, is buying a futures contract when it breaks out of a channel. Even if you are not an avid trader, you have probably heard about how some stocks trade "in a channel," and how it is good to buy on a breakout.

Although I found the course intriguing, I have never tried commodities futures trading myself, and here is why: Futures contracts are highly leveraged investment vehicles, which basically means they are very risky. You could make a lot of money quickly, but you could also lose a lot of money very fast. Even if you have a string of winners, one bad trade could virtually wipe you out. If you are comfortable with risk, this may not scare you, but you should consider this often quoted statistic: 95% of people who trade commodities lose money. So unless you are dead sure you can outsmart 95% of the traders out there, many of them professionals, then it might be a good idea to stay away from this game altogether.

Nowadays, Ken Roberts also offers an online newsletter and online charts for a subscription fee of $29.95 per month. Subscribing to a charting service will be essential if you want to use Ken Roberts' techniques.

If you decide to try commodities futures contracts, Ken Roberts' course and online services are worth a look. Before trading with real money, remember to 1) Paper trade for at least a few months and 2) Study money management techniques.

PROS:

• Quality of materials is generally good
• Straightforward presentation
• A good introduction to the commodities market

CONS:

• The course is somewhat pricey
• Trading commodities is very risky

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