Train for the worlds most powerful Business.

1. Making Money in Commodities©. A Business Guaranteed to Change Your Life.

2. 8/18/2011 ©MMIC 2 Making Money in Commodities© Making money in commodities is about the one perfect business in the world, its about making money. Let us consider making money… The only way to make money is to do business. There is no other choice!

3. 8/18/2011 ©MMIC 3 Starting a New Business What is required to start a business which will cover our expenses and provide us with enough to one day retire? - Know how – project plan, idea, concept… - Experience – previous experience in doing business… - Legal – company formation, insurance, lawyers, accountants - Location – office, shop, factory, machinery, decoration, stock - Employees – managing & training them and keeping them… - Product / service – delivery, quality, competition… - Customers– advertising, credit, collections, bad debts… - Suppliers– paying on time, opening l/C’s… - Capital / money – own, friends, investors, banks

5. When will our initial capital be returned?

7. Require no attorney, accountants, or bookkeepers.

8. Have no collection problems.

9. Have no inventory.

11. Need no employees.

12. Can be established with as little as $10,000 to $25,000.

17. No experience required! Anybody can start.

18. All legal procedures can be completed by filling 4 forms. It takes 5-7 days before you can start trading.

20. Products – the best products in the world in unlimited supply.

21. No customers or suppliers – cash business.

23. 8/18/2011 ©MMIC 13 Starting a New Business What would be our annual return on investment – ROI? Before we see the ROI let me first show you this great business and then we will see a real example…

24. 8/18/2011 ©MMIC 14 What Are Commodities? Commodities are necessities of daily life. We will trade in seven types of products: Grains – corn, wheat, soybeans… Currencies – euro, yen, Swiss franc, pounds… Metals– gold, silver, copper, platinum… Energies – crude oil, natural gas… Foods– sugar, cocoa, cattle, coffee… Soft – cotton, lumber… Indexes – Dow Jones, Nasdaq, S&P. There are thousands of commodities.

25. 8/18/2011 ©MMIC 15 What Happens at Exchanges? A commodity exchange is where commodities & commodity futures are traded. A commodity exchange is a central place where all the buyers and sellers meet to buy and sell their commodities.

26. 8/18/2011 ©MMIC 16 Chicago Board of Trade (CBOT)The Exchange Floor – This Is Where Trading Takes Place

27. 8/18/2011 ©MMIC 17 What Happens at Exchanges? It is a very liquid market. A buyer does not have to find a seller and vice versa. Business takes place in a central place called a pit where all the buyers and sellers gather and conduct trade. The price of a commodity is determined at this pit.

28. 8/18/2011 ©MMIC 18 What Happens at Exchanges? A commodity exchange is created and managed by a group of commodity traders and ruled by law. The first exchange was formed in France in the 15th century. The first exchange in the USA was established in the year 1848.

29. 8/18/2011 ©MMIC 19 What Happens at Exchanges? A commodity exchange helps control the fluctuation of prices and provides stability and liquidity to the farmers, producers, buyers and sellers and ultimately benefits the common man.

30. 8/18/2011 ©MMIC 20 What Happens at Exchanges? The exchange decides which commodities will be traded there. It decides qualities, quantities and delivery periods. Each exchange has its own set of rules and regulations.

31. 8/18/2011 ©MMIC 21 What Happens at Exchanges? The most important function is that the exchange guarantees the buyer and seller will get paid and will receive the goods on time and as per specification.

32. 8/18/2011 ©MMIC 22 Futures… A commodity future or just future as it is usually called, is a commodity, which is to be delivered at a future date. e.g. Cotton for delivery in May 2001is a May 2001 cotton future. Every future has a different price though it is the same commodity. This depends on the market expectation of the price of the commodity at the future delivery date.

33. 8/18/2011 ©MMIC 23 What Are Contracts? At the exchange, commodities are traded in large quantities, which are set by the exchange and are called contracts. Each commodity future has a different contract size e.g. a corn contract is 5000 bushels, a cotton contract is 50,000 lbs., a silver contract is 5000 oz., A crude oil contract is 1000 barrels. A sugar contract is 112,000 lbs etc.,

34. 8/18/2011 ©MMIC 24 Reading Prices Each futures contract is traded between a fixed period of time every day except weekends. The first price at which business is done after the market opening is called the openprice. The last price at which business is done before the market closes is called the last price or settleprice. The highest price during the market hours is the high price, Similarly the lowest price is the low price.

35. 8/18/2011 ©MMIC 25 Reading Prices We therefore have four prices every day for every future month for every commodity: Open the open price or first price High the highest price during the day Lowthe lowest price during the day Closethe last price before the market closes Note: closing prices are also called settle/last

36. 8/18/2011 ©MMIC 26 Margin Requirements Since we are not taking delivery of the commodity as it will be delivered in the future the exchange does not require us to pay the full value of the contract. All that we have to pay to trade a commodity is a margin which is like a good faith deposit. Each commodity has a different margin decided by the exchange and based on the volatility of the commodity. e.gThemargin on cotton was $1,000 per contract.

37. 8/18/2011 ©MMIC 27 Starting a New Business Now that we know something about commodities let us go back to our previous question of return on investment ‘ROI’ Let us take a real life example…

38. 8/18/2011 ©MMIC 28 Make an Actual Trade Let us assume we are today in the morning of the 14th of December 2001. We assume that we wish to buy May 2002 cotton at the open as we expect the price to go up. We will also assume we will sell the cotton on the close. We will also assume that we have $25,000 to invest in our account. If we had invested this in any other good business we could expect a return of 25-40% per year.

40. Low 36.31 cents / pound

41. Open36.31 cents / pound

43. 8/18/2011 ©MMIC 31 Make an Actual Trade. Since we have $25,000 in our account we bought only 1 contract. Therefore we bought 1 contracts of May 2002 cotton at the OPEN which was 36.31 c/lb. For $18,155. And we sold 1 contract (thereby closing our position) at the CLOSE, which was 38.87 cents/lb. At the end of the day we sold the 1 contract at 38.87. = 50,000 x 38.87. = 1,943,500 cents or $19,435.

44. 8/18/2011 ©MMIC 32 Make an Actual Trade. Our profit will be: = Selling price – buying price. = 19,435 – 18,155 = $ 1,280. Return on investment for this business is: = Profit / investment. = 1,280 / 18,155 = 7.05% per day. If we could do this for 100 days in the year we would have a return of 700% on our investment on an annual basis.

45. 8/18/2011 ©MMIC 33 Make an Actual Trade We remember that we do not need to invest the whole value to buy or sell a contract of cotton. All we need to invest is the margin. The margin of cotton was $1,000 per contract. Therefore we can buy more contracts for $25,000. = Capital / margin = contracts. = 25,000 / 1,000 = 25 contracts. (We can therefore buy 25 contracts instead of 1).

46. 8/18/2011 ©MMIC 34 Make an Actual Trade Our profit will be 25 x $1,280 = $32,000 for one day! Also our new return on investment is: = 1,280 / 1,000 = 128% Now this is more like it! And if we were able to keep doing this for 100 days we would have return of 12,800% annually!!! Or $32,000 profit per day X 100 days = $3,200,000 profit per year

47. 8/18/2011 ©MMIC 35 Welcome to the most powerful money making business in the whole world!

48. 8/18/2011 ©MMIC 36 WhatYou Will Learn During This Course? Margin & contract specifications Analysis & strategies Three strategies to succeed!!! Workshop for strategies Taking profits & minimizing loss Silver strategy Making a million dollars Names of exchanges Important names & numbers Quote service Support program

49. 8/18/2011 ©MMIC 37 Eng. Hossam who took this course in July 2010, turned $5,000 into $17,600 in four months.He left his job and is now happilyUN-EMPLOYEED

50. 8/18/2011 ©MMIC 38 The Lecturer turned$78,000into$245,000in just 2 weeks!!!

51. 8/18/2011 ©MMIC 39 If you think you Can or if you think you can’t, you’re right!

52. 8/18/2011 ©MMIC 40 Making Money in Commodities©It’s the most Powerful Money Making Business in the Whole World.