Click Here: PVOI
for detailed explanation on this trading technique

The bible for this trading method is William Grandmill's "Investing In Wheat, Soybeans, Corn," and the excellent companion that transitions it to today is Dr. Gould's "The Trading Legacy of William Grandmill," sub-titled "Total Mastery of the Grain Markets," both available from: Windsor Books (If you click on Windsor Books, use your browser's "Back" button to return here) Grandmill's strategy in a nutshell (it's almost like you are your own inside trader because you know the futures price 6 months in advance) William Grandmill and Dr. James S. Gould both employ Technicals and Fundamentals in their total trading strategy. The difference is in when, where and how to use both. Any broker will tell you, "All I know is high and low." That is pure technicals trading language. It deals exclusively with price. When the price is high, logic says it will go lower. When the price is low, logic says it will go higher. But consider this. The price is the result of market factors. Something comes first to cause the price to be either high or low. What comes first is the fundamentals. William Grandmill's brilliantly simple strategy was to interpret the fundamentals that would result in the price months down the road. That gave him the edge needed to take advantage of what the price would be and take a position accordingly. After 20 years of raising grains himself, Mr. Grandmill knew that there are some things that repeat every year and without regard to any other factors, crops are planted, they grow, are harvested and marketed at the same times every year. Supply is seasonal. Demand is forced to depend on this supply cycle. That is why he settled on tracking prices for his contract months: July and December for Corn and Wheat, and May and November for Soybeans. Thus, his "automatic" year round trading plan--considering taking and exiting trades between these contract months. There were a handful of addtional purely seasonal trades also. That is still the plan today. The difference is that Dr. Gould has researched the data to include the possibility of establishing positions in any calendar month for those same contract months. Thus opening up the possibility of doing what all traders want to do--originating more trades than just the original twice a year opportunities for each grain. He simplified the supply/demand equation to the carryover stated as a percent. A low carryover would mean higher prices and a high carryover would mean lower prices. In this instance, the carryover became the chicken that came before the egg that was the price. Dr. Gould uses technical indicators to time the taking of a position such as: (when the trend is in the direction of the target price the fundamentals have determined in order to maximize the prospects of always staying "in the money"). That way, whenever you decide to exit the trade, it is with a profit whether you wait it out for more or take a bird in the hand. IF YOU FEEL STRONGLY ABOUT A TRADING POSITION, BUT IT DOES NOT MEET THE FULL SAFETY MARGIN, THE GRANDMILL METHOD DOES NOT PROHIBIT YOU FROM MAKING THE TRADE--YOUR RISK IS JUST HIGHER THAN WITH THE FULL SAFETY MARGIN AND YOU MAY NEED MORE BACKUP CAPITAL (MARGIN) TO RIDE THE TRADE OUT UNTIL YOU REALIZE A PROFIT. SEE THE "NOTES ON TRADE RECOMMENDATIONS AT THE END OF DR. GOULD'S TRADE RECOMMENDATIONS" FOLLOWING DR. GOULD'S GRANDMILL PRINCIPLE TRADE RECOMMENDATIONS IN EVERY ISSUE OF GRAINS NEWSLETTER. We keep telling you there is considerable risk of financial loss in commodities trading. Everybody in the industry keeps telling you that. So, why should you be interested in participating in such a risky venture? The same thing that attracted a struggling farmer named Wm. Grandmill to commodities trading--the unbelievable leverage! Especially in the grains that cycle all over again each and every year--but most importantly, lend themselves to the concept of "investing" instead of just buying and selling--that made him a wealthy man! What we are about Continuing a common-sense fundamentally sound well researched, tried and tested and proved reliable philosophy of long-term profitable commodity trading of the three grains: Wheat, Corn and Soybeans (so classified even though soybeans are not technically a grain). We talk plain talk the way Mr. Grandmill did. He farmed grains for 20 years before trying his hand at commodities trading. He knew about planning each crop depending on all the factors that needed to be included to avoid losses and stand ready to profit by marketing at the right time. This could not be determined on a purely technicals chart showing what the prices had been. He needed to find a way to look ahead and determine what the prices should and would be. What we're not about We're not slick, glossy, glamorous and full of hype. We don't spend millions on flashy advertising that you must pay for in the long run. In fact, we're so low-key that it's a wonder that you found us at all and are reading this now! Look folks--you can learn to do this all by yourself! So, what do you need Grains Newsletter and Dr. Gould's advice for? The same reason a world champion boxer would not enter the ring without a trusted, experienced handler to keep him focused on what he's doing right or wrong. The same reason a super bowl team would not take the field without their coach to keep them on track doing what works and avoiding what doesn't. The analogies are endless--but you get the point, don't you? "Investing" differs from "trading" in that it implies a lesser degree of risk. Commodities trading should only be attempted with disposable income (money that will not create a hardship if lost). There are some similarities, but commodities trading is very different from trading in the stock market where you put your money in, sit on the sideline and hope for the best. In the commodities market only you control your investment all the way-win or lose! Wm. Grandmill perfected very sound reasons for taking advantage of the uniqueness of the grains that sets trading them apart from trading any other commodities taking advantage of the seasonal (repeatable) nature. The basic philosophy as expressed by Mr. Grandmill is, "Grain commodities are about the only commodities whose prices react to fundamentals. Grain commodities are especially adaptable to long term trading (Editor's Note: Long Term is defined by Mr. Grandmill as 2 to 8 months)because of their growing cycles which brings about seasonal price changes. Other commodities such as gold and foreign currencies are not seasonal and are not suitable for long term fundamental trading--technical trading is better. But because grains are seasonal and especially adaptable to long term trading, let's take advantage of that fact." We received a letter from a new subscriber on August 28, that read in part: "First of all let me say you have a great letter. Love your format. No nonsense, just the facts. Being new to Mr. Grandmill's and Dr.Gould methods, your newsletter is important to me. After receiving your newsletter on July 17, I called my broker and bought 1 Dec. Wheat contract. On Aug. 19, 32 days later, I got out with a 50¢ profit ($2500). I could not believe it. I am happy. After losing $6,000 the last 2 years, you have a customer for life. Being new to the methods and all, I think I have found something that really works. The forecasting charts tell you what to do...Keep up the great work!" RG. (EDITOR) Well, thanks. We will just keep doing what we've been doing. A note from LG, in part: "I am very happy with your newsletter as it is very helpful. I do need updated charts as there must be many changes." (EDITOR) You're in luck, LG, because Dr. Gould keeps them coming as he deems necessary. "Dear Grains Editor- I've just subscribed via Paypal. You can make it internet access for now. For your records: I've subscribed to almost a dozen investment letters, and consistantly have lost money. The Grandmill method is the only one that has paid for itself with the Dec. 06 wheat call that I purchased last August. Yours, truly, Thomas Amodie" Who was Wm. Grandmill and why do we continue his strategy? He was the man that vowed to never reveal the secret he discovered that made him a wealthy trader, but finally changed his mind and not only revealed it--but devoted the rest of his life to helping others learn it. In his own words in his "last newsletter ever" shortly before he died he wrote, "I could make more (money), but I have enough." What he discovered is that it is the unique seasonal nature of the grains unlike other commodities, when coupled with supply/demand fundamentals enabled him to ferret out the secrets to predicting their prices in advance and therefore profit handsomely by applying that knowledge.