The Professional Commodity Trader | By Stanley Kroll

BOOK REVIEW

By Cam R

Title: The Professional Commodity Trader

Author: Stanley Kroll

I came across this book by pure serendipity, and it’s not a book that many have heard of, let alone come across. A book that details the exploits of futures trader Stanley Kroll in the 1970s commodities market, it lays bares his trading campaigns. Also showed how he turned his own small starting trading stake of $18,000, together with some managed accounts of his own firm, into a million and more.

So is it worth your time to read through this book? Let's start below!

Packaging - 3/5 (Traders Press Edition)

Good quality paperback with nice thick white paper that shouldn't turn yellow. And there is a nice and sturdy feel when holding it while reading. The cover design is really amateurish though, it looks like someone just slapped on some word art on a generic photo. If not for the ugly cover, I would have rated it a 4. The cover is a great disservice to the book really, as there are countless books with better designed covers and yet whose content leaves much to be desired. 

Writing Style - 4/5

A breezy conversational style, it reads like a very enthusiastic tour guide taking you on a tour of his trading office. The writing is short, crisp and flows quickly, giving you quick action of his comings and goings in the market.

Here's an example of the crisp and action-packed writing:
“What do you do for an encore after you’re just turned $350,000 into $900,000 in the commodity game in a year and half? You promptly drop a quick $150,000 on the short side of wheat and sugar, that’s what. Some encore!”.

Trading Methods (Specifics) - 3/5

He details his methods in a few paragraphs, and also shares some of his handy preparation tools, like a simple and useful worksheet he prepares daily before trading. Kroll is basically a trend follower (and a huge fan of Livermore), and he trades long-term, holding winning positions for weeks. But the way he describes it, it seems long term trading is as much of a roller-coaster as daytrading is.

It's quite interesting how he describes staying with a trend:
“Riding a winning commodity position is a lot like riding a bucking bronco. Once you manage to get aboard, you know what you have to do – hang on and stay hung on; not get bumped and knocked off till the end of the ride.”

Trading Management (Soft Skills) - 4/5

Lots of insight into how he manages his positions, as he basically lets you into his head, especially in the chapter “Tiptoe in my office and be a fly on the wall”. You can feel his anxiety and triumphs, as well as laugh along with some of the stranger and funnier experiences of his. Good stuff really, and the part where he talks how he planned his copper campaign to make a million dollars is very instructive too. A plus is that he liberally sprinkles the book with his charts.

Trading Psychology (Mindset) - 2/5

Not so much of the mindset here, it is more or less glossed over. It's probably due to the fact that he didn't go into how he actually learned to trade at the beginning. It's more of how he is trading when he is successful already, so not much insights in the mindset area for me.

Longevity -3/5

Fun and useful book that I find myself flipping back to occasionally. It’s like a quick exercise around the block to get your mind going and your energy up. An added plus is the brevity of the book. It’s a quick read with short chapters.

Value - 4/5

If you can get a copy of the book, get it and read it. It’s one of those very accessible and rare books written by a successful and yet everyman commodity trader.

Things to Watch Out For -

This book is short and not meant to be an educational tome, so it doesn't contain much stuff other than his selected commodity plays. Also, the trades in the books took place in the 1970s, so the examples may be slightly outdated.

Overall - 4/5

Great little book on trading the markets, and I would recommend reading it if you can. Although Kroll is a commodity trader, the basic trading principles he is generous enough to share in this book are timeless and applicable to all markets.

Score Recap:

Packaging - 3/5 

Writing Style - 4/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 4/5

Trading Psychology (Mindset) - 2/5

Longevity -3/5

Value - 4/5

Overall - 4/5

Where to Buy:

If you found the above review helpful and want to buy the book, please do consider buying it from my Amazon affiliate link below. The prices are competitive, and any purchase goes a long way in supporting this site and as a small motivation for me to continue working on this resource for you. Thank you!

 

Related Books
There is another book by Stanley Kroll, called Dragons and Bulls – Profitable Investment Strategies for Trading Stocks and Commodities. If you're interested to learn more about that book, check out my review for it. (Review Here)


Thank you very much for reading!
And do check back for new and updated book reviews, cheers! :)