You Can’t Lose Trading Commodities – Ruthless Accountability

When I first started learning about trading, one book stood out as both unusual and deeply influential: You Can’t Lose Trading Commodities by Robert F. Wiest. The title sounds outrageous — of course you can lose — but inside this book was a systematic way of looking at markets that changed how I thought about trading forever.

Even though I trade mostly stock options today, the ideas in this book helped me build the foundation for my current approach. Concepts like risk management, leverage, liquidity, and the constant push and pull between hedgers and speculators show up in both commodities and options. Reading this book gave me a new lens to understand what really moves markets — and why most traders lose.

In this blog series, I’ll walk through each chapter of the book, summarizing the author’s key lessons and connecting them to how I approach options trading now. My goal is twofold:

Preserve and share the insights from a book that shaped my trading mindset.
Show you how to adapt these timeless principles into the modern world of options.

Let’s start with Chapter 1.

Chapter 1: An Introduction to Commodities Trading

In this chapter, Robert F. Wiest introduces readers to the basics of how commodity futures markets work.

Here are the main ideas from Chapter 1:

Purpose of Commodity Exchanges – They exist to give producers, processors, millers, bakers, and others a way to hedge price risk, not just for speculation.
Hedging Examples – Farmers lock in profits before harvest, grain elevator operators protect against massive inventory losses, and millers/bakers hedge to fulfill contracts profitably.
Role of the Speculator – Speculators rarely take delivery of the physical commodity but provide liquidity and balance to the market.
How Futures Contracts Work – Futures are contracts, not ownership of the commodity. Profits and losses come from price differences between entering and offsetting contracts.
Margins and Clearinghouses – Margin is a performance bond, not borrowed money like in stocks. Clearinghouses guarantee trades, making the system structurally sound.
Volatility and Leverage – Commodities often look more volatile than stocks, but it’s usually the leverage (5–10% margin) that amplifies moves.
Market Size – Some single commodities trade more daily dollar volume than the entire NYSE, showing just how big these markets are.
Information Transparency – Unlike stocks with insider information, commodity price drivers like crop reports and global news are widely and publicly distributed.
Inflation Benefit – Since the author’s system focuses on the long side, inflation acts as a tailwind over time.

For me, this chapter set the stage for what came later in the book. It’s the framework that leads into Wiest’s “scale trading” system, which is where the real lessons began that eventually influenced how I think about options today.

Chapter 2: The Las Vegas System

In this chapter, Robert F. Wiest connects his trading philosophy to gambling systems he studied while working in Las Vegas. His main point is that while most gambling progressions fail in casinos, one of them — with the right market force behind it — could be adapted into a profitable trading system.

Here are the main ideas from Chapter 2:

The Martingale System (Double Up) – This is the classic “double your bet after each loss” strategy. It promises that a single win recovers all prior losses plus a profit. In reality, it fails because long losing streaks quickly balloon bet sizes beyond bankroll limits (or casino table limits). Wiest calls it “probably one of the worst progressions ever developed.”
The Chops System (Pinch and Press, Stair Step) – Instead of doubling, this method increases bets by one unit after each loss and decreases by one unit after each win. Over time, if wins and losses roughly balance, the player grinds out small, steady profits.
Why Gambling Systems Fail in Vegas – In casinos, there is no natural law that forces losing streaks to end. The house edge always prevails eventually, which means even “Chops” can’t guarantee profits.
The Key Insight – Wiest realized that if there were a force that eventually had to reverse losses into wins, Chops would always work. Commodities have such a force: the law of supply and demand. When prices fall too far, supply shrinks, demand grows, and prices must eventually rise.

For me, this chapter draws an immediate parallel to cash-secured puts (CSPs) and covered calls:

With CSPs, I’m willing to take assignment on a stock at a lower price. That’s my “progression” — I get paid to wait, and if the stock falls, I now own shares at a discount.
Once I own shares, I sell covered calls to generate steady income, much like “Chops” aims to grind out consistent profits.
The big difference from Martingale-style gambling is that I’m not doubling down recklessly. Instead, I’m trading with a structural edge — supply/demand dynamics in commodities, and mean reversion, volatility decay, and time premium in options.

The takeaway is clear: systems like Martingale fail because they fight against probability with no structural advantage. But Wiest’s adaptation of “Chops” works because commodities have supply and demand laws on your side — and my CSP/covered call approach works for the same reason: I’m trading with structural edges, not against them.

Chapter 3: Supply/Demand

In this chapter, Robert F. Wiest explains why most technical trading systems fail and why his approach works: it’s built on the law of supply and demand, not on chart patterns or short-term price action.

Here are the main ideas from Chapter 3:

Technical Analysis as “Effect” – Chartists look at past price movements, volume, and patterns. But these are only effects of the real driver of prices.
The True Cause of Prices – Only supply and demand can move prices. Weather, production costs, consumption, and global events determine availability and demand, which in turn set price direction.
Examples –
- Corn might hit a “resistance level” on a chart, but the real reason it reverses is rainfall ending a drought.
- Gold may appear to “hold support,” but the real driver could be reduced production or increased consumption.
Why Technicals Fail Alone – Charts can’t predict sudden droughts, geopolitical shocks, or demand shifts. Those events change supply and demand, which then move prices.
Stock Market vs. Commodities – Stocks are dominated by fear and greed (and insider trading), making them less predictable. Commodities, by contrast, follow supply/demand more reliably.
Cycle of Prices –
- Low prices = producers cut supply + consumers buy more → prices rise.
- High prices = producers increase supply + consumers cut back → prices fall.
- This cycle repeats endlessly.

For me, this chapter reinforces why I prefer cash-secured puts (CSPs) and covered calls over pure directional speculation.

With CSPs, I’m comfortable if a stock drifts lower temporarily because I only sell puts on companies I want to own. Supply/demand forces in the stock itself — earnings, buybacks, sector rotation — often push prices back into balance.
Once I own the stock, covered calls let me benefit from the natural ebb and flow of prices. While traders chasing chart patterns may get whipsawed, I’m monetizing volatility as it happens.
Just as Wiest says about commodities, I don’t have to guess the exact top or bottom. I just need to structure trades so that the natural cycles of supply and demand work in my favor.

The big lesson from Chapter 3 is simple but powerful: don’t confuse effects with causes. If your strategy isn’t rooted in a structural force like supply and demand, you’re just gambling on noise.

Chapter 4: The Scale Trading System

In this chapter, Robert F. Wiest introduces the core of his entire book: scale trading. This is the system he argues makes it possible to profit consistently in commodities — not by predicting prices, but by systematically buying as prices fall and selling as they recover.

Here are the main ideas from Chapter 4:

Definition of Scale Trading – Buy contracts on a scale down (as prices fall in increments) and sell them on a scale up (as prices rise back through those same increments).
Why It Works – Because of supply and demand:
- Low prices reduce production and increase consumption.
- This imbalance eventually forces prices higher.
- The trader profits on the “inevitable rally.”
Historical Range Example (Corn) –
- Corn traded in a range of about $1.40 to $3.80 per bushel.
- A scale trader might start buying when prices hit the lower third of that range (below $2.20).
- Each $0.10 drop triggers another purchase.
- Each $0.10 rise triggers a sale, locking in profits.
Commissions and “Bonus Executions” – Wiest notes that gap openings often give better fills than expected, which can offset trading costs over time.
Flexibility in Starting Points – Traders shouldn’t be rigid. For example, after droughts or bumper crops, the range shifts, and starting points should adjust.
Broader Application – Even if corn isn’t attractive, other commodities (like livestock or unrelated markets) will almost always present scale trading opportunities.

For me, this chapter connects directly to cash-secured puts (CSPs) and covered calls:

Selling CSPs is a form of “scale trading.” If the stock drops, I take assignment at a lower price — effectively buying on a scale down.
Once I own shares, selling covered calls is like selling on the “scale up.” I’m taking profits (in the form of option premium) as the stock recovers or drifts higher.
Just as Wiest stresses flexibility with commodities, I apply the same mindset to options. If one ticker isn’t attractive, I don’t force trades — I look for another with better setup, liquidity, and premiums.

The real lesson here is that you don’t have to predict exact tops or bottoms. A system that lets you profit from the natural oscillations of the market — whether it’s scale trading in commodities or CSPs and covered calls in stocks — can steadily grind out profits over time.

Chapter 5: Why You Can’t Lose

In this chapter, Robert F. Wiest defends the bold claim in his book’s title. He explains why, when scale trading is done correctly with proper planning, the system becomes nearly impossible to lose over the long run.

Here are the main ideas from Chapter 5:

Unlimited Wealth Thought Experiment – If someone had unlimited capital, they could keep buying on the way down until the inevitable supply/demand reversal pushed prices back up. Loss would be impossible.
Reality Check – Most traders don’t have unlimited wealth, so the system must be adapted for people with $5,000 to $100,000 in capital.
The Key: Scale Selection – The success of scale trading hinges on choosing the right increments for adding contracts. Too tight a scale risks exhausting capital; too wide a scale leaves too much idle cash and fewer profit opportunities.
Example with Corn (MidAmerica contracts) –
- Trader starts buying at $2.50 and adds contracts every $0.10 down to $1.50.
- By the bottom, they hold 11 contracts with a paper loss of $5,500.
- With $10,000 capital, they still have cash in reserve, meaning they can safely hold until prices recover.
Rollover as Safety Net – If prices stagnate, contracts can be rolled forward. Minor oscillations along the way still generate profits that often cover commissions and carrying costs.
Conclusion – By budgeting capital to handle even extreme price declines, the trader can hold positions long enough for supply/demand to guarantee eventual recovery. Hence Wiest’s bold statement: you can’t lose.

For me, this chapter translates directly to cash-secured puts (CSPs) and covered calls:

When I sell CSPs, I size positions so that even if the stock falls, I have enough capital to take assignment without blowing up my account.
Once assigned, I hold the shares and sell covered calls, knowing that supply/demand dynamics (earnings, sector cycles, broader market forces) often push prices back up over time.
The key lesson is position sizing and patience. Just like Wiest warns against setting scales too tight, options traders need to avoid selling puts too aggressively on volatile stocks or with too much leverage.

The big takeaway: you don’t lose if you plan your capital around worst-case scenarios and stick with the system. Both in scale trading and in CSP/covered calls, your edge comes from being able to stay in the game long enough for the natural forces of the market to work in your favor.

Chapter 6: The Bankroll

In this chapter, Robert F. Wiest shifts from the mechanics of scale trading to the practical question of capital management. He emphasizes that success in scale trading isn’t just about picking the right scale increments — it’s about properly budgeting your bankroll so you can survive downturns and stay in the game long enough for supply and demand to bail you out.

Here are the main ideas from Chapter 6:

The Importance of a Team Approach (Las Vegas Analogy) – Just like gamblers pool money to play systems in Vegas, traders need to think about how to allocate and protect capital so the “team” (or account) doesn’t go bust.
Bankroll Discipline – Before entering any scale trade, the trader must calculate:
- How far prices could reasonably fall.
- How much capital will be required to support contracts all the way down.
- How much must be kept in reserve for emergencies.
Margin Management – Margin requirements aren’t debt, but they do tie up cash. You must budget not just for paper losses but also for the margin needed to keep contracts open.
Avoiding Overextension – Traders fail when they trade too large, set scales too tight, or don’t keep enough reserve capital. Wiest warns that even a sound system fails if the bankroll isn’t managed correctly.
Psychological Comfort – Knowing you have the bankroll to survive adverse moves helps eliminate panic and prevents the fatal mistake of bailing out too early.

For me, this chapter resonates directly with cash-secured puts (CSPs) and covered calls:

With CSPs, bankroll discipline means only selling puts on positions I’m truly willing to own and having the cash available to take assignment. That’s my version of “scale capital.”
With covered calls, the shares I own become productive assets that generate option income while I wait — but only if I sized properly to begin with.
The biggest killer of new options traders is over-leverage. Selling too many puts without enough cash in reserve is like Wiest’s trader who sets scales too tight: the first big downturn wipes them out.

The key lesson from this chapter is timeless: capital is survival. In commodities, in options, or in any leveraged market, your edge means nothing if you can’t stay solvent long enough for that edge to play out.

Chapter 7: Selecting the Scale

In this chapter, Robert F. Wiest gets specific about the heart of his method: how to choose the right scale when setting up trades. The whole system hinges on this decision, because a poorly chosen scale either risks blowing up your bankroll or leaves too much profit potential untapped.

Here are the main ideas from Chapter 7:

The Scale as the Foundation – Every successful trade begins with advance planning of the increments where you’ll add positions. The scale is the framework for the entire system.
Too Wide a Scale – If increments are too far apart, you’ll only hold a few contracts, and much of your capital will sit idle. Profits will be limited when prices eventually rebound.
Too Tight a Scale – If increments are too close together, you’ll accumulate too many contracts too quickly, run out of capital, and risk being unable to hold long enough for recovery.
Striking the Balance – Wiest emphasizes designing scales that anticipate “the worst foreseeable decline” while still leaving room for gains during normal oscillations.
Example with Corn –
- Starting at $2.50 per bushel, adding every $0.10 down to $1.50 produces 11 contracts.
- This leaves adequate reserves to survive the decline and still capitalize on the eventual rebound.
Flexibility is Key – Scale selection must reflect current conditions. A drought year, bumper crop, or unusual supply/demand factor might call for adjusting the spacing.

For me, this lesson is almost identical to how I think about cash-secured puts (CSPs) and covered calls:

When selling CSPs, the “scale” is my strike selection and position sizing. If I sell too aggressively (too many contracts, too close to the current price), I overcommit capital. If I sell too conservatively, I’m leaving potential return on the table.
Once assigned, my covered calls function as the “scale up” — setting strikes where I’m willing to sell and adjusting based on market conditions.
Just like Wiest warns, the danger isn’t the system itself — it’s misusing the scale by failing to plan for worst-case scenarios.

The big takeaway: whether you’re scale trading corn or selling options on stocks, success comes down to designing your entry and exit framework in advance. If you get the scale right, profits become a matter of patience.

Chapter 8: Worth 10,000 Words

In this chapter, Robert F. Wiest presents the scale trading system in a visual chart format to illustrate how the strategy works step by step. He argues that one well-designed chart showing the buy and sell levels of a scale trade is “worth 10,000 words” because it demonstrates the mechanics of the system far more clearly than pages of description.

Here are the main ideas from Chapter 8:

The Power of Visualization – A chart makes the progression of buys (on the way down) and sells (on the way back up) instantly understandable.
Showing the Oscillations – Prices rarely move in a straight line; instead, they fluctuate. A visual scale highlights how profits can be taken on these minor rallies even during a larger downtrend.
Reinforcing Patience – The chart shows that, over time, oscillations generate profits while the trader patiently waits for the larger supply/demand reversal to play out.
Seeing Risk and Reward – By laying out buy levels and capital requirements visually, the trader can immediately see whether their bankroll is adequate for the worst-case decline.
Clarity for New Traders – Wiest stresses that once someone sees the system graphically, they understand that it doesn’t depend on guessing tops or bottoms — just sticking to the scale.

For me, this connects perfectly with how I think about cash-secured puts (CSPs) and covered calls:

With CSPs, I often visualize my trades in a “ladder” of possible outcomes. If the stock falls, I take assignment at a strike I’ve already planned. If it rises, I simply keep the premium. A chart helps me see those outcomes clearly.
With covered calls, a visual payoff diagram shows where I’ll profit, where I’ll cap gains, and where I’ll be forced to adjust.
Just like Wiest’s chart makes scale trading easier to grasp, visualizing options payoff diagrams makes it clear that my CSP + covered call system doesn’t depend on predicting exact moves — it just monetizes the natural oscillations of the stock.

The big takeaway from this chapter: sometimes a picture really is worth 10,000 words. If you can see your system laid out visually, you’ll trade it with more confidence and discipline.

Chapter 9: The MidAmerica Contract

In this chapter, Robert F. Wiest introduces the MidAmerica Commodity Exchange (MidAm), which was designed to make futures trading more accessible by offering smaller-sized contracts. He explains why these “mini” contracts are important for traders who don’t have the deep pockets of large institutions.

Here are the main ideas from Chapter 9:

Smaller Contract Sizes – MidAm contracts were typically one-fifth the size of standard contracts (e.g., 1,000 bushels of corn vs. 5,000 on the Chicago Board of Trade).
Lower Capital Requirement – Because the contracts were smaller, the margin requirements were also smaller, making scale trading feasible for traders with modest bankrolls.
Ideal for Small Traders – Someone with $5,000–$10,000 could realistically participate, test the system, and learn without taking on the enormous risk of full-size contracts.
Flexibility in Scaling – Smaller contracts allow for tighter increments in scale trading. Instead of committing too much capital at once, the trader can spread entries more gradually.
Stepping Stone – Wiest positions MidAm contracts as a way for beginners to build confidence, gain experience, and learn discipline before moving to larger exchanges.

For me, this chapter has a direct parallel to how I think about cash-secured puts (CSPs) and covered calls:

With CSPs, I often size positions smaller by starting with a single contract (100 shares). This is my equivalent of a “mini contract.” It keeps risk manageable while still providing meaningful premiums.
Smaller position sizes give me flexibility in scaling. Instead of selling too many puts at once, I can layer into positions as prices move — exactly like Wiest advocates with MidAm contracts.
Just as MidAm opened the door for smaller traders in commodities, the options market today allows me to scale systematically without needing institutional-level capital.

The big takeaway from this chapter: start small, stay flexible, and use contract size to control risk. Whether in commodities or options, success isn’t about swinging big — it’s about staying in the game and letting your system play out over time.

Chapter 10: Taking a Profit

In this chapter, Robert F. Wiest explains the mechanics of exiting positions profitably within the scale trading system. He emphasizes that profits come not from predicting when the market has peaked, but from systematically selling contracts as prices rebound through pre-set levels.

Here are the main ideas from Chapter 10:

Profits Are Built In – Every buy on the way down has a corresponding sell order on the way back up. The system doesn’t require calling tops — it just requires following the scale.
Small, Repeated Gains – Each $0.10 price rebound in corn (for example) means a $500 profit per contract (5,000 bushels × $0.10). These small wins accumulate steadily.
Patience Pays – Prices rarely move straight up. They oscillate. By having standing sell orders at pre-set increments, the trader locks in profits during these rebounds.
Psychological Advantage – Knowing profits are “baked in” helps the trader avoid panic during declines. Each dip is just setting up future rebounds.
Compounding Effect – Over time, these repeated profits compound, turning minor oscillations into significant returns.

For me, this chapter ties directly into how I use cash-secured puts (CSPs) and covered calls:

With CSPs, I view the premium collected as my “built-in profit.” Even if the stock dips, that credit cushions my entry price and sets up future returns.
Once I own shares, covered calls act like Wiest’s standing sell orders. I place them systematically at strikes I’m comfortable selling. If the stock rises, I lock in profit; if not, I just collect more premium.
Like scale trading, it’s less about predicting highs and lows and more about structuring trades so profits are inevitable over time.

The big takeaway: profits don’t come from being right about direction — they come from planning exits in advance and letting the market’s natural oscillations do the work.

Chapter 11: How Can I Lose?

In this chapter, Robert F. Wiest addresses the natural objection to his bold claim that “you can’t lose.” He lays out the situations where traders think they’ve lost, why those happen, and how scale trading is designed to avoid permanent loss if applied correctly.

Here are the main ideas from Chapter 11:

Paper Losses vs. Real Losses – A scale trader will often see large paper losses during downturns, but these aren’t realized unless contracts are liquidated prematurely.
Impatience Kills – The biggest risk comes from traders who lack the patience to hold until supply/demand forces bring prices back up. Closing out too early locks in what would have been temporary drawdowns.
Underfunding the Scale – Another risk is starting a scale too tight or with too little capital. If the account runs out of margin before recovery, forced liquidation turns a paper loss into a real one.
Emotional Decision-Making – Fear, panic, or boredom can cause traders to deviate from the system. The system works only if it’s followed consistently.
True Loss Requires Quitting – As long as you maintain your positions with adequate bankroll, the system’s logic holds: eventual rebounds allow you to exit profitably.

For me, this is one of the clearest connections between scale trading and cash-secured puts (CSPs) and covered calls:

When I sell CSPs, paper losses can appear if the stock dips. But as long as I have the capital to take assignment, those losses aren’t realized — I simply own shares at a lower cost basis.
With covered calls, I keep generating income while waiting for recovery. As long as I don’t panic and sell at the bottom, time and market cycles usually bail me out.
The biggest way to “lose” in options is the same as in scale trading: overleveraging or quitting too early. If you size responsibly and stay patient, short-term drawdowns don’t equal long-term loss.

The big takeaway: you “lose” only if you break discipline. With the right bankroll and patience, temporary setbacks are just part of the path to eventual profits.

Chapter 12: Taking a Loss

In this chapter, Robert F. Wiest tackles the hardest part of trading — what it means to take a loss. He argues that while scale trading is designed to eventually win, traders often lose because they can’t endure paper losses or they’re forced to liquidate too soon.

Here are the main ideas from Chapter XII:

Forced Liquidation Is the True Loss – Wiest recounts being forced out of positions in gold, cattle, and orange juice because of fund redemptions. In every case, the market later rallied to levels that would have delivered large profits.
Paper Losses Are Normal – Scale trading almost guarantees you’ll see paper losses as you accumulate contracts on the way down. These aren’t failures — they’re part of the system.
Patience vs. Panic – The real danger is losing nerve too soon. Many traders sell out at the bottom, just before the law of supply and demand pushes prices higher.
Partnership Risks – Trading with partners can multiply capital, but also risk forced withdrawals if partners panic. Wiest advises limiting withdrawals to once a year with long notice to avoid disrupting the system.
Stops vs. Staying Power – Brokers often teach traders to use protective stops, but Wiest warns this undermines scale trading. Stops convert paper losses into real losses prematurely.

For me, this chapter mirrors the biggest risk in cash-secured puts (CSPs) and covered calls:

With CSPs, paper losses are inevitable if the stock dips after I sell the put. But unless I panic and buy back the option at a loss, those are unrealized. If I’m willing to take assignment, I still control the outcome.
With covered calls, I can ride out downturns by continuing to sell calls, slowly reducing my cost basis until recovery.
The danger is the same as Wiest describes — panic selling. If I close positions at the worst moment or oversize so badly that I’m forced out, I lock in losses that time and discipline would have erased.

The big takeaway: scale trading — and CSP/covered call trading — requires the ability to endure drawdowns without flinching. The loss isn’t real until you give up your position.

Chapter 13: The Complex Scale

In this chapter, Robert F. Wiest expands on the basic scale trading method by introducing the idea of a complex scale. Instead of using fixed increments for buying contracts, he shows how to tighten the scale as prices decline, allowing the trader to accumulate more contracts near the probable bottom with reduced risk.

Here are the main ideas from Chapter XIII:

Simple vs. Complex Scales – A simple scale uses equal increments (e.g., buy every 10 cents lower). A complex scale adjusts those increments — starting wide and then tightening as prices fallYou Can’t Lose Trading Commodit….
Spring Analogy – Prices behave like a spring: the further they’re depressed, the sharper they snap back. That’s why narrowing the scale near lows can capture more profits with less riskYou Can’t Lose Trading Commodit….
Toe-in-the-Water Approach – If you’re unsure about the starting level, you can begin with a broad scale and then tighten once prices move into a range you’re more confident aboutYou Can’t Lose Trading Commodit….
Extra High-Priced Contracts – Even starting a bit early can pay off if you’re well-capitalized. One or two extra “expensive” contracts may generate multiple small profits as prices oscillateYou Can’t Lose Trading Commodit….
Practical Example – Wiest illustrates with MidAmerica wheat contracts, showing how losses per increment shrink as you tighten the scale from 10 cents to 7.5, 5, or even 3 cents near the bottomYou Can’t Lose Trading Commodit….

For me, this has a strong parallel to cash-secured puts (CSPs) and covered calls:

With CSPs, I sometimes start cautiously — selling puts further out of the money (“wide scale”). If the stock falls, I can sell puts closer to the current price (“tighten the scale”), accumulating positions at increasingly attractive prices.
With covered calls, tightening the strike selection as the stock rises is like the sell side of a complex scale — gradually capturing profits while staying active in the oscillations.
Just like Wiest’s spring analogy, the deeper the dip, the stronger the rebound often is. Tightening my strike choices in CSPs near lows or in covered calls near highs lets me take advantage of that natural “snap back.”

The big takeaway: flexibility creates opportunity. Starting wide and tightening your scale — whether in commodities or options — helps you profit from both early oscillations and the bigger reversal that supply/demand (or time decay, in options) inevitably brings.

Chapter 14: Scaling From the Short Side

In this chapter, Robert F. Wiest explores the idea of scaling from the short side — selling contracts as prices rise rather than buying as they fall. He warns, however, that this approach is inherently more dangerous than scaling long.

Here are the main ideas from Chapter 14:

Temptation to Short – Traders often want to short when a commodity keeps bouncing lower from resistance, like copper oscillating between 62¢ and 72¢. It looks easy to profit by selling each rally.
Unlimited Upside Risk – Unlike long trades (where a price can only fall to zero), there is no upper limit to how high a commodity can rise. Strikes, wars, or inflation shocks can send prices soaring, wiping out short-scale tradersYou Can’t Lose Trading Commodit….
Offsets Reduce Risk – Wiest suggests that if you insist on scaling short, you should balance short positions with at least some longs so you’re never net short — at worst, you’re flat. For example, buy eight contracts in one month and short four in another, keeping yourself net long overallYou Can’t Lose Trading Commodit….
Spread Mechanics – As prices rise, you take profits on long contracts while adding shorts. This gradually narrows your net long position until you’re even, protecting you against runaway ralliesYou Can’t Lose Trading Commodit….
The Danger of Two-Sided Scales – Wiest explains that even balanced “two-sided” scales can become risky because losses accumulate quickly if prices trend strongly in one directionYou Can’t Lose Trading Commodit….
Strong Warning – He concludes bluntly: do not attempt naked short scaling. If you do, eventually a commodity will spike (like soybeans to $20), and you’ll be wiped outYou Can’t Lose Trading Commodit….

For me, this is a direct lesson for cash-secured puts (CSPs) and covered calls:

Selling CSPs keeps me structurally on the “long side” — the safer side, since stocks can fall but not below zero.
Selling naked calls is the equivalent of scaling from the short side. Theoretically, losses are unlimited. That’s why I prefer covered calls — the short option is backed by long stock, just like Wiest’s advice to balance shorts with longs.
The principle is clear: always bias yourself toward trades with limited downside and unlimited patience, not unlimited downside and hope.

The big takeaway: scaling short is a trap. If you’re going to sell, do it with protection — whether that’s offsetting longs in commodities or owning shares when selling calls in the stock market.

Chapter 15: Starting Too High

In this chapter, Robert F. Wiest explains the difficulty of choosing when to begin a scale after markets have surged to unusually high levels. While starting after a big decline is straightforward — just compare to the bottom third of the past 10 years — deciding what’s “normal” after runaway prices is much harder.

Here are the main ideas from Chapter 15:

Runaway Prices Create Uncertainty – After extraordinary rallies, it’s not clear whether prices will return to old levels or settle into a new, higher plateau caused by inflation.
Example: Soybeans – Before 1973, soybeans had never traded above $5. Suddenly, they hit $13. Eventually, $6 became the “new normal” even though that price had never been seen before. If soybeans later surged to $15 and fell back to $8, traders would face the dilemma: is $8 the new plateau, or just a stop on the way down to $6?
Solution: Complex Scales – Wiest advises using a complex buying scale when unsure. For example, buy one contract at $8, then wait until $7.25, $6.75, $6.50, and continue scaling down to $6.00. This way, you’re protected whether $8 becomes the new base or prices return to $6.
Use Expanded Selling Scales – When using a complex buying scale, Wiest suggests widening the selling scale too. Contracts bought higher up should aim for bigger profits (e.g., $0.20), while those lower down can target smaller gains (e.g., $0.15). This balances out risk on the more expensive buys.
Not a Common Problem – Wiest admits that not all commodities trade at extreme highs at once, so this is more of a special-case issue than a daily problem.

For me, this chapter parallels my use of cash-secured puts (CSPs) and covered calls:

With CSPs, sometimes a stock looks “too high” after a big run. I may sell puts at strikes well below the current market, effectively creating my own “complex scale.” If the stock holds its new plateau, I still collect premium. If it drops, I’m buying at gradually more attractive prices.
With covered calls, after a big rally I might sell calls further out of the money (wider scale), locking in larger profits if exercised, while still generating income if the stock drifts lower.
The principle is the same: when in doubt about whether today’s prices are sustainable, plan for both scenarios by structuring entries and exits that protect you either way.

The big takeaway: don’t fear starting “too high” — just adjust your scale and plan so you can survive whether prices settle at a new plateau or return to historical norms.

Chapter 16: The Rollover

In this chapter, Robert F. Wiest explains the mechanics and importance of rolling over contracts in scale trading. Since futures contracts expire, scale traders need a way to maintain positions without being forced into delivery of the physical commodity.

Here are the main ideas from Chapter 16:

Why Rollover Is Necessary – Futures contracts don’t last forever. Without rolling, a trader holding positions into expiration could face delivery obligations. The rollover keeps the trade alive without interruption.
How It Works – You close out the expiring contract and simultaneously open a new one in the next delivery month. The cost is usually just the commission, since gains and losses from the old contract are immediately transferred into the account.
Carrying Charges – Deferred contracts often trade slightly higher because of storage and financing costs. This difference, called the carrying charge, is a normal part of rolling forward.
No Harm to the System – Rolling doesn’t disrupt the scale. If anything, the oscillations between nearby and deferred contracts may even create additional opportunities for profit.
Planning Ahead – The key is to handle rollovers early and systematically, not wait until the last few days of trading when liquidity dries up.

For me, this chapter connects directly to cash-secured puts (CSPs) and covered calls:

With CSPs, I often “roll” my short put if the stock is near the strike at expiration. Closing the old contract and opening a new one further out in time lets me keep collecting premium without taking assignment right away.
With covered calls, rolling is just as common. If the stock is near or above the strike, I can buy back the old call and sell a new one at a different strike or further expiration, managing risk and continuing income.
Just like Wiest’s rollover, option rolling doesn’t break the system. It’s simply the mechanic that keeps the strategy running smoothly over time.

The big takeaway: rolling is a tool for continuity. In commodities, it keeps scale trades alive. In options, it keeps CSP and covered call strategies flexible, letting you adapt without abandoning the system.

Chapter 17: Compensating for Carrying Charges

In this chapter, Robert F. Wiest explains how to deal with carrying charges — the built-in cost of rolling futures contracts forward because deferred delivery months often trade at a premium to nearby contracts. For scale traders, this is an important adjustment to keep the system fair and profitable.

Here are the main ideas from Chapter 17:

What Carrying Charges Are – Futures contracts for delivery further out in time usually cost more. This difference reflects storage, insurance, and financing costs.
Impact on Scales – If you ignore carrying charges, you might set your scale too high and underestimate how much capital is needed. Over time, that erodes profitability.
Adjusting the Scale – Wiest suggests adding the approximate carrying charge to your scale when rolling forward. For example, if corn trades between $2 and $4, and carrying charges equal about 6% annually (or 0.5% monthly), then you would raise the scale slightly for each deferred contract.
Example – If the December contract starts at $2.67, March should start around $2.71, May at $2.74, July at $2.77, and so on. This adjustment keeps the scale consistent and realistic as time moves forward.
The Goal – Carrying charges are not a reason to abandon the system; they’re just a cost of doing business that must be accounted for to keep results accurate.

For me, this concept parallels cash-secured puts (CSPs) and covered calls in a very direct way:

With CSPs, time is the equivalent of carrying charges. The longer-dated the option, the more expensive it is because of time value. Selling longer-dated puts requires recognizing that extra cost.
With covered calls, rolling forward often means buying back a near-term option at a loss and selling a longer-term one for more premium. The “net debit” or “net credit” of that roll is my version of compensating for carrying charges.
Just like Wiest adjusts scales to reflect time costs, I adjust my option strategy to reflect the impact of time decay and volatility over different expirations.

The big takeaway: time has a cost. In commodities, it’s carrying charges. In options, it’s time value. You don’t ignore it — you factor it in and adjust your system accordingly.

Chapter 18: Selecting a Broker

In this chapter, Robert F. Wiest turns from the mechanics of trading to the practical choice of selecting a broker. He emphasizes that the right broker can make or break a trader’s experience, not because they determine profits directly, but because they influence costs, execution, and discipline.

Here are the main ideas from Chapter 18:

Brokers Always Profit – Commissions ensure that brokers make money whether the trader wins or loses. This makes choosing wisely essential.
The Dangers of “Advice Brokers” – Wiest warns against brokers who push hot tips or talk clients into using protective stops. These practices often serve the broker’s interests more than the trader’s system.
Discount vs. Full-Service – The key isn’t necessarily the lowest commission rate, but whether the broker supports your trading style. Scale traders, for example, need reliable order execution more than constant advice.
Execution and Reliability – A broker should execute orders promptly, handle rollovers efficiently, and provide clear records. Sloppy execution or slow fills eat into profits.
Independence of Thought – Ultimately, the trader must run their own system. A broker is a service provider, not a partner in decision-making.

For me, this chapter carries a clear parallel to how I approach cash-secured puts (CSPs) and covered calls in today’s stock options world:

Low-Cost Execution Matters – With commissions now close to zero for most options trades, I don’t worry about costs as much as Wiest’s era traders did. But execution speed, platform stability, and data reliability are crucial.
Ignore the Noise – Just like Wiest warned against brokers giving too much advice, I avoid letting media pundits or analyst chatter push me into trades outside my CSP/covered call system.
Broker as Infrastructure – I view my brokerage the same way Wiest viewed his: a tool for execution, reporting, and risk management. My edge doesn’t come from the broker; it comes from my system.

The big takeaway: your broker is not your strategy. Choose one that makes execution cheap, fast, and reliable — then focus your energy on the system that actually generates profits.

Chapter 19: Selecting a Brokerage House

In this chapter, Robert F. Wiest expands from choosing an individual broker to the bigger decision of selecting a brokerage house. While a broker is the person who takes your orders, the firm behind them determines stability, financial integrity, and the overall trading experience.

Here are the main ideas from Chapter 19:

Financial Strength Matters – A brokerage house must be solid enough to handle clearing, margin calls, and daily settlement. A weak firm exposes traders to risks beyond the market itself.
Reputation and Reliability – The history and reputation of the firm are critical. In commodities especially, shaky or undercapitalized firms have gone under, leaving clients exposed.
Execution and Systems – The brokerage house should have the infrastructure to process trades quickly and accurately. Sloppy back-office systems create errors that eat into profits.
Cost Isn’t Everything – While commissions matter, they should never be the only factor. Reliability and financial integrity far outweigh slightly lower rates.
Service Without Interference – A good firm provides efficient execution and accurate reporting, but doesn’t pressure clients into trades or override their system.

For me, this chapter translates directly into modern cash-secured put (CSP) and covered call trading:

Platform Stability – Just as Wiest emphasized strong infrastructure, I look for brokerages with platforms that don’t crash in volatile markets. Execution quality is more important than saving a few pennies.
Financial Safeguards – In today’s world, I want a firm that’s SIPC/FDIC insured and has a history of managing client funds responsibly. Safety of capital comes first.
Independence of Strategy – My edge comes from CSPs and covered calls, not from a brokerage’s research or “trade ideas.” Like Wiest, I see the brokerage house as infrastructure, not a partner.

The big takeaway: your brokerage house should be boring, stable, and reliable. Let the excitement happen in your trading — not in worrying about whether your firm will still be standing tomorrow.

Chapter 20: Discount Commissions

In this chapter, Robert F. Wiest discusses the role of discount commissions in trading. He acknowledges that while commissions are a cost, discount brokers can make trading far more affordable — but warns that low cost isn’t the only factor to consider.

Here are the main ideas from Chapter 20:

Discount Brokers Reduce Costs – By stripping away advisory services and focusing on order execution, discount firms offer lower commission rates. This benefits systematic traders who don’t rely on broker advice.
Perfect Fit for Scale Traders – Since scale trading is rule-based, it doesn’t require hand-holding from a broker. Lower commissions simply mean more net profit from each oscillation.
Execution Quality Still Matters – Saving money is worthless if the firm doesn’t execute quickly or accurately. The lowest-cost broker isn’t always the best choice.
Volume Advantage – Because scale trading involves many small trades, commission savings add up quickly. Over dozens or hundreds of trades, discount commissions make a noticeable difference.
Beware of False Economies – Wiest cautions against choosing a discount broker solely for price. The balance between cost, reliability, and service is what counts.

For me, this connects directly to cash-secured puts (CSPs) and covered calls in today’s markets:

The Modern Advantage – With most major brokerages now charging zero commissions for stock and very low fees for options contracts, this is an enormous edge compared to Wiest’s time.
Focus on Execution, Not Price – Like Wiest, I don’t chase the absolute lowest cost. For me, platform reliability, execution speed, and margin rules matter more.
Perfect for Systematic Option Selling – Since CSPs and covered calls are systematic trades, I don’t need “advice.” Discount-style execution lets me keep nearly all the option premium I collect.

The big takeaway: low commissions amplify systematic strategies. But the true edge comes from pairing cost savings with reliable execution and disciplined trading.

Chapter 21: The Managed Account

In this chapter, Robert F. Wiest examines the idea of trading through a managed account — turning your money over to a professional or fund manager who makes the trading decisions on your behalf. He’s skeptical of this approach for most traders, especially when it comes to scale trading.

Here are the main ideas from Chapter 21:

The Appeal of Managed Accounts – Many traders like the idea of letting someone else do the work, especially if they lack time or confidence.
The Problem of Discipline – Wiest warns that managers often abandon systems under pressure. Even a good scale strategy can be ruined if the manager quits too early or trades too aggressively.
Conflicting Interests – A manager’s priorities (earning fees, keeping clients happy) may not align perfectly with long-term profitability. Short-term pressures can override sound strategy.
Loss of Control – In a managed account, the investor gives up direct oversight. If positions are liquidated at the wrong time, the damage is irreversible, even if the market would have turned.
The Better Alternative – Wiest argues that with a simple, rule-based system like scale trading, traders are better off learning it themselves rather than outsourcing to a manager.

For me, this ties directly to how I think about cash-secured puts (CSPs) and covered calls:

I Wouldn’t Hand It Off – My CSP and covered call system is straightforward and rule-based. There’s no reason to outsource it to someone who might abandon discipline under stress.
Alignment of Incentives – No manager cares about my account as much as I do. Running the system myself ensures the incentives are aligned.
Confidence in the System – Like scale trading, CSPs and covered calls don’t require special “genius.” They require patience, consistency, and proper capital planning. That’s better handled directly than delegated.

The big takeaway: don’t outsource discipline. If your system is simple and proven, you’re better off running it yourself than trusting a manager who may not stick with the plan when it matters most.

Chapter 22: Accounting and Tax Considerations

In this chapter, Robert F. Wiest turns practical, emphasizing the importance of accounting and tax awareness for traders. He explains that even the best trading system can fall apart if profits aren’t tracked properly or if taxes aren’t planned for responsibly.

Here are the main ideas from Chapter 22:

Trading as a Business – Treat trading like any other business. Keep proper records of entries, exits, commissions, and rollovers. Sloppy bookkeeping can hide whether you’re truly profitable.
Tax Realities – Profits are taxable. Don’t ignore them, and don’t make trades just to avoid taxes. Taxes are simply part of the cost of doing business.
Netting Effects – Losses offset gains, reducing taxable income. Because scale trading produces many small gains and occasional paper losses, net results may be more favorable than traders expect.
Professional Help – Wiest encourages traders to use accountants who understand commodities. The complexity of multiple trades, rollovers, and carry adjustments can overwhelm amateurs.
Discipline Beyond Trading – Careful accounting and tax planning reinforce the overall discipline required for success in trading.

For me, this carries over directly to cash-secured puts (CSPs) and covered calls:

I Track Everything – I keep detailed logs of CSP and covered call trades — premiums collected, expirations, rolls, and final outcomes. Without this, it’s too easy to fool yourself about results.
Options Are Taxable Income – Every premium I collect is taxable. Like Wiest says, paying taxes is a good problem to have — it means the system works.
Use Professionals – Options taxes can be complex (especially with index options and Section 1256 contracts). Just as Wiest suggested for commodities, I lean on professionals for accuracy.
System Mindset – Just as in trading discipline, accounting discipline ensures I approach options systematically, not emotionally.

The big takeaway: track your results and respect taxes. If you don’t measure it, you can’t manage it — and if you ignore taxes, you’re setting yourself up for surprises that can undo all your hard work.

Chapter 23: Partnerships

In this chapter, Robert F. Wiest explores the idea of trading partnerships — pooling capital with others to trade on a larger scale. While partnerships can provide more resources, he warns they often introduce new risks that can undermine even the best trading system.

Here are the main ideas from Chapter 23:

Why Traders Form Partnerships – The main appeal is more capital. With a bigger bankroll, traders can run wider scales, handle deeper drawdowns, and potentially capture larger profits.
The Problem of Withdrawals – Partners can panic when trades go against them. Demands for redemption force premature liquidation, locking in paper losses that would have turned into profits if held.
Stories From Experience – Wiest describes having to liquidate promising positions early because partners wanted their money back — only to see the market later soar.
Control and Discipline Issues – A system that depends on patience can collapse if even one partner loses nerve. A single weak link can ruin the whole operation.
Structuring Partnerships Safely – If you must form one, Wiest advises restricting withdrawals (e.g., once a year, with advance notice) to protect the integrity of the trading system.

For me, this directly parallels how I think about cash-secured puts (CSPs) and covered calls:

Trading With Only My Capital – I prefer trading CSPs and covered calls with my own funds. That way, I never face a “partner” demanding to exit at the worst possible time.
Forced Exits Are Deadly – Just like Wiest’s partners pushed him out of good trades too early, option sellers who close positions under pressure often lock in losses unnecessarily.
Discipline Is Personal – My system works because I stick to it. Partnerships add extra layers of emotion and conflict that can sabotage consistency.

The big takeaway: partnerships multiply capital, but they also multiply risk — not market risk, but human risk. In systematic trading, discipline is everything, and it’s hard enough to maintain on your own without adding partners into the mix.

Chapter 24: Trend-Following Systems

In this chapter, Robert F. Wiest examines trend-following systems — strategies that attempt to ride momentum by buying when prices rise and selling when they fall. While popular, he argues these systems are inherently flawed compared to scale trading.

Here are the main ideas from Chapter 24:

The Appeal of Trend-Following – Many traders are drawn to momentum strategies because they seem simple: “the trend is your friend.”
Why They Fail – Prices rarely move in smooth, uninterrupted trends. They oscillate, reverse suddenly, or get whipsawed by news. Trend-followers often enter too late and exit too soon.
Mathematical Disadvantage – Every false signal costs commissions and slippage. Even when catching part of a trend, the math usually doesn’t work out long-term.
False Security of Rules – Trend systems can look disciplined, but their discipline is built on chasing effects (price moves) rather than causes (supply and demand).
Scale Trading Contrast – Scale trading doesn’t depend on predicting or chasing trends. It profits from the oscillations that frustrate trend-followers.

For me, this ties directly to how I view cash-secured puts (CSPs) and covered calls:

Options Traders Fall Into the Same Trap – Many option sellers try to chase momentum with aggressive short-term trades, hoping to ride trends. This often ends in whipsaws and losses.
CSPs and Covered Calls Aren’t Trend Plays – My system doesn’t rely on guessing the next move. Selling puts gives me income while waiting to buy shares I already want. Covered calls give me income while I wait for recovery. Neither requires trend prediction.
Profiting From Oscillations – Just as Wiest’s scale trading thrives on market swings, CSPs and covered calls generate income precisely because markets chop around. Time decay and volatility are my “oscillations.”

The big takeaway: trend-following looks good on paper, but rarely works in practice. Systematic approaches built on structural forces — supply and demand in commodities, or time decay in options — give traders a much more reliable edge.

Chapter 25: Why Doesn’t Everyone Scale Trade?

In this chapter, Robert F. Wiest tackles the obvious question: if scale trading works so well, why doesn’t every trader use it? His answer highlights the human and psychological obstacles that stop most people from sticking with a winning system.

Here are the main ideas from Chapter 25:

Patience Is Rare – Scale trading often requires enduring large paper losses before recovery. Most traders can’t stomach watching red ink for months at a time.
Discipline Is Hard – The system demands strict adherence to scales and bankroll management. Many people abandon the plan as soon as emotions take over.
Illusion of Quick Riches – Most traders chase hot tips, chart patterns, or “fast money” systems. Scale trading looks boring by comparison, even though it’s safer and more reliable.
Broker Influence – Brokers often discourage scale trading because it generates fewer commissions than active, trend-chasing trading.
Misunderstanding the Edge – Many people can’t accept that the edge comes not from prediction, but from patience, capital, and the law of supply and demand.

For me, this lesson maps directly onto cash-secured puts (CSPs) and covered calls:

Why Doesn’t Everyone Trade CSPs and Covered Calls? – For the same reasons. They’re not flashy. They don’t promise overnight riches. They require patience, discipline, and acceptance of steady, smaller gains.
Most Traders Want Excitement – They chase meme stocks, speculative options, or complex spreads, while ignoring systematic, boring-but-powerful strategies.
The Edge Is in Boring – Like scale trading, CSPs and covered calls work because they’re tied to structural forces — time decay, volatility, and willingness to own shares. But most traders would rather gamble than grind out steady income.

The big takeaway: the reason everyone doesn’t scale trade — or sell CSPs and covered calls — is psychology, not logic. The system works, but few people can stick to something that looks too slow and too boring compared to the lure of “fast money.”

Chapter 26: Some Useful Guidelines

In this chapter, Robert F. Wiest shares a set of practical rules of thumb for applying scale trading. He stresses that there can’t be rigid, one-size-fits-all rules — bankroll, market conditions, and trader judgment all vary. Still, his personal guidelines provide a framework for safer, more effective trading.

Here are the main ideas from Chapter 26:

Is It Fundamentally Attractive? – Don’t buy a commodity just because it has fallen recently. The price should make sense in light of current supply and demand. A further decline should be likely to reduce production and increase consumption.
Lowest Third of the 10-Year Range – Only initiate scales when prices are in the lowest third of their range over the last ten years. This margin of safety ensures you’re buying in areas where recovery is most likely. Ignore extreme, one-off spikes caused by unusual events when calculating this range.
Adjust for Carrying Charges – When rolling into deferred contracts, add carrying costs (storage, financing, insurance) to keep scale levels realistic. For example, a scale starting at $2.67 in December might start slightly higher in March, May, or July to account for those costs.
Check the 20-Day Moving Average – Avoid starting scales in commodities trading above their 20-day moving average. This safeguard helps prevent chasing runaway prices and beginning too high.

For me, these guidelines have direct parallels in cash-secured puts (CSPs) and covered calls:

With CSPs, I only sell puts on fundamentally solid companies — stocks I’d actually want to own if assigned.
I use a version of the “lowest third” rule as well.
And I consider technical checks like moving averages to avoid selling puts on stocks that are stretched to unsustainable highs.

The big takeaway: Wiest’s rules are simple safeguards that filter out bad trades and stack the odds in your favor. Whether in commodities or options, a few clear guidelines can prevent costly mistakes and keep your system on solid ground.

Chapter 27: Patience is a Virtue

In this chapter, Robert F. Wiest emphasizes that the most important qualities of a successful scale trader are dedication, discipline, and above all, patience. The temptation to abandon the system is constant, especially when other traders appear to be making fast fortunes in trendy markets.

Here are the main ideas from Chapter 27:

Temptations Everywhere – Scale traders may feel pressure to throw out their plan and chase “hot” markets like gold or silver, or to hold for big moves instead of taking steady, pre-planned profits.
Peer Pressure and Ridicule – Friends or fellow traders might brag about massive gains in sugar, interest rate futures, or other hot trades. The disciplined trader must resist both the taunts and the urge to imitate them.
The Cronkite Index – Wiest humorously notes that media hype itself is often a contrary indicator. When evening news shows broadcast wild excitement about stock market profits, it’s usually near the top. When they show despair and gloom during market crashes, it’s usually near the bottom.
Examples of Frenzies – He recalls the gold boom of 1980, when nonstop media coverage and retail speculation marked the peak. Within weeks, gold dropped sharply, wiping out latecomers.
Patience During Dull Periods – Even when nothing looks attractive, the solution isn’t to force trades. Instead, Wiest recommends sitting in safe instruments like Treasury bills or money market funds until opportunities return.
Timeless Lesson – Markets always cycle back. Those who wait for disciplined entries will eventually be rewarded.

For me, this lesson is just as important in cash-secured puts (CSPs) and covered calls:

The Temptation to Chase – It’s easy to want to jump into speculative trades when others are boasting of quick wins. But my edge comes from following a disciplined system, not chasing hype.
Patience Pays – Sometimes the best trade is no trade. Waiting for the right CSP or covered call setup — with a fundamentally sound stock, a safe strike, and sufficient premium — always beats forcing action.
Ignore the Noise – Just as Wiest ignored media frenzy, I avoid being pushed into bad trades by analyst chatter, social media, or headline hype.

The big takeaway: patience is not optional — it’s the edge. In both commodities and options, the disciplined trader who waits for the right opportunity will outlast and outperform the speculators who chase excitement.

Chapter 28: Track Records

In this chapter, Robert F. Wiest discusses the importance — and the limits — of track records in evaluating trading performance. While they can be useful, he warns that track records are often misleading and should not be trusted blindly.

Here are the main ideas from Chapter 28:

Track Records Can Deceive – Many published track records are designed to impress, but they don’t tell the full story. They may emphasize winners while downplaying or ignoring losses.
Selective Memory – Traders often remember their best trades and quietly forget the losers, creating an inflated sense of success.
Marketing vs. Reality – Commodity pools and managed accounts often promote stellar track records to attract clients, but those results may come from luck, favorable conditions, or cherry-picked examples.
Short-Term Records Are Useless – A few months or even a year of good results don’t prove a system works. Long-term, disciplined results are what matter.
The Scale Trading Difference – Wiest argues that his system doesn’t rely on a flashy track record to convince people. The logic of supply and demand, bankroll planning, and patience are the foundation — not a handful of lucky trades.

For me, this lesson applies directly to cash-secured puts (CSPs) and covered calls:

Ignore the Hype – It’s easy to find traders online showing screenshots of huge monthly returns from speculative options trades. Without context, those “track records” are meaningless.
Focus on Repeatability – My CSP and covered call system isn’t about one-off wins. It’s about steady, repeatable income built on time decay, volatility, and disciplined position sizing.
Long-Term Matters – Just like Wiest said, a year of results proves little. What matters is a track record over many years, across bull and bear markets, showing the system survives and thrives.

The big takeaway: don’t be dazzled by track records. In both commodities and options, what matters isn’t a flashy history of wins but a system with sound logic, discipline, and the ability to last over the long haul.

Chapter 29: Interest Rates and the Federal Reserve

In this chapter, Robert F. Wiest highlights the powerful influence of interest rates and the Federal Reserve on commodity markets. He explains that while supply and demand set the long-term foundation for prices, the cost of money itself can dramatically affect both producers and consumers in the short and medium term.

Here are the main ideas from Chapter 29:

Cost of Carry – Interest rates affect carrying charges in commodities. Higher rates increase the cost of holding inventories, which influences futures prices and rollovers.
Impact on Producers – Farmers, miners, and other producers often borrow to finance production. Rising rates increase their costs, forcing changes in supply.
Impact on Consumers – Higher borrowing costs dampen demand. For example, if financing is expensive, fewer people buy houses, cars, or even durable goods tied to commodities.
The Federal Reserve’s Power – By raising or lowering rates, the Fed indirectly controls commodity demand and prices. Sudden policy changes can cause abrupt market shifts.
Practical Lesson for Scale Traders – While the system doesn’t depend on predicting interest rates, traders should be aware of them as a background factor that can extend declines or accelerate rallies.

For me, this lesson connects directly to cash-secured puts (CSPs) and covered calls:

Interest Rates Affect Option Pricing – Higher rates generally increase option premiums (since carrying stock becomes more expensive relative to holding options). This can boost income for CSP and covered call sellers.
Market Sensitivity – Just like commodities, stocks are heavily influenced by Fed decisions. Rate hikes pressure equities, and CSP sellers must be prepared for assignment during downturns.
Patience Through Policy Cycles – My system doesn’t depend on guessing Fed moves. I simply structure trades conservatively and let time decay work, knowing that cycles of tightening and easing will always come and go.

The big takeaway: interest rates set the rhythm of the market. In commodities or options, you don’t need to predict every move — but you must respect the Fed’s influence and plan your system to survive the cycles.

Chapter 30: The Stock Market — Look Out Below!

In this chapter, Robert F. Wiest turns his attention to the stock market, offering a blunt warning: stocks are far riskier than commodities for the average trader. His message is that while commodities are grounded in supply and demand, stocks are driven largely by speculation, manipulation, and psychology.

Here are the main ideas from Chapter 30:

Stocks Can Go to Zero – A company can fail, and its stock can become worthless. By contrast, commodities never go to zero — corn, wheat, or gold always have intrinsic value.
Speculation vs. Fundamentals – Stock prices often swing on fear, greed, or insider manipulation, rather than natural supply/demand cycles.
Media and Hype – Stocks are subject to relentless promotion, hype, and “get rich quick” stories. This lures in the public at tops and drives them out in despair at bottoms.
No Natural Safety Net – Unlike commodities, which eventually balance supply and demand, stocks don’t have an equivalent force ensuring recovery. Entire industries can vanish.
Better Odds in Commodities – Wiest concludes that scale trading in commodities offers a safer, more logical approach than speculating in stocks.

For me, this is where I diverge from Wiest — because I do trade stocks, but I approach them using cash-secured puts (CSPs) and covered calls to neutralize the problems he describes:

Stocks Can Go to Zero — But I Choose Carefully – I sell CSPs only on companies I’m willing to own long-term. I don’t speculate on weak firms.
Structural Edge – Where Wiest leaned on supply and demand, I lean on option pricing: time decay, volatility premiums, and disciplined position sizing.
Ignore the Hype – Like Wiest warned, I don’t let hype or media excitement push me into trades. My system is systematic, not emotional.
My Safety Net – CSPs and covered calls provide income whether stocks drift, drop moderately, or rise. I don’t need to predict the next headline or market mood.

The big takeaway: Wiest distrusted the stock market because most people speculated blindly. I’ve built a system that makes stocks tradable on the same kind of structural foundation he admired in commodities.

Chapter 31: General Questions

In this chapter, Robert F. Wiest addresses a variety of common questions he received about scale trading. It serves as a kind of FAQ, clearing up misunderstandings and reinforcing the discipline required to follow the system.

Here are the main ideas from Chapter 31:

“How Much Capital Do I Need?” – Enough to handle a full scale, including potential deep declines, without running out of funds. Starting undercapitalized is the surest path to failure.
“Can I Use Stops to Limit Losses?” – No. Stops turn temporary paper losses into permanent ones. The whole point of scale trading is holding patiently until supply and demand reverse.
“Do I Need to Trade Every Commodity?” – No. Only trade those in the bottom third of their 10-year range with sound fundamentals. Quality of opportunity matters more than quantity.
“What About Commissions and Taxes?” – They’re just costs of doing business. They don’t ruin the system when managed properly.
“Can I Scale Short Instead of Long?” – Technically yes, but it’s much riskier. There’s no limit to how high prices can go, while the downside in commodities is naturally limited.
“Isn’t This Too Slow?” – Yes, scale trading is not a get-rich-quick scheme. It’s designed for steady, reliable profits over time, not thrills.

For me, these Q&As echo directly in the world of cash-secured puts (CSPs) and covered calls:

Capital Requirements – I only sell CSPs when I have the cash to take assignment comfortably. Like Wiest’s traders, the system collapses if you oversize.
Stops vs. Patience – I don’t panic-close positions at temporary losses. I size for assignment, then use covered calls to work my way back.
Selectivity Matters – Just as Wiest only traded fundamentally sound commodities at lows, I only trade options on companies I’d actually want to own.
Costs Are Manageable – Commissions and taxes exist, but they don’t negate the edge if the system is sound.
Not a Fast Game – CSPs and covered calls aren’t flashy. They generate steady returns, which is exactly why they work.

The big takeaway: most questions about scale trading — or CSPs and covered calls — come back to the same truth: have enough capital, stick to the plan, and accept that success comes slowly but surely.

Chapter 32: Make Inflation Work for You

In this chapter, Robert F. Wiest explains how inflation, while often seen as a negative force, can actually be an ally for the scale trader. Rising prices across the economy naturally lift commodity prices over time, providing a built-in tailwind for the system.

Here are the main ideas from Chapter 32:

Inflation Is Inevitable – Over time, governments expand money supply, which erodes currency value and raises the nominal prices of goods. Commodities — being tangible necessities — are among the first to reflect this.
A Tailwind for Scale Traders – Because scale trading focuses on buying commodities near historical lows, inflation increases the likelihood that even those “low” prices will eventually rise above past averages.
Examples in Practice – Commodities like corn, wheat, and soybeans tend to establish new “normal” price floors after inflationary periods. What once was a high can later become the low end of a new trading range.
Built-In Margin of Safety – Inflation means that a scale trader who survives downturns is even more likely to see prices recover — not just to prior levels, but often to higher ones.
Patience Rewarded – The longer the time horizon, the more inflation magnifies the advantage of holding through temporary declines.

For me, this chapter ties directly to cash-secured puts (CSPs) and covered calls in the stock market:

Inflation and Stocks – Inflation often pushes nominal stock prices higher over long horizons, much like commodities. That makes CSPs safer over decades, since assigned shares tend to recover to new highs eventually.
Option Premiums Rise With Inflation – Inflation often brings higher interest rates and volatility, which boost option premiums. For CSP and covered call sellers, that means more income per trade.
A Natural Edge Over Time – Just like Wiest’s scale traders, my edge compounds over years of patience. Inflation ensures that the “normal” price level for quality stocks trends upward, helping CSPs and covered calls pay off.

The big takeaway: inflation, rather than being a threat, can be a built-in advantage. For commodities or options, as long as you trade with discipline and patience, rising prices across the economy tilt the long game in your favor.

Chapter 33: The Psychology of Commodities Trading

In this chapter, Robert F. Wiest emphasizes that the greatest challenge in trading isn’t the market itself, but the psychology of the trader. Scale trading works on logic and discipline, yet most people fail because they let fear, greed, and impatience override their system.

Here are the main ideas from Chapter 33:

Fear of Losses – Traders panic when they see large paper losses, forgetting that the system is built to hold through downturns until supply and demand force recovery.
Greed for Quick Gains – Many abandon the system in search of fast profits, chasing hot tips or speculative runs instead of collecting steady, systematic gains.
Impatience – Scale trading can be slow, sometimes requiring months of waiting. Most traders can’t stand inactivity and end up forcing bad trades.
The Confidence Gap – Even when shown a logical system, traders often don’t believe in it enough to stick with it during tough stretches. Discipline collapses when conviction is weak.
Emotional Control as the Edge – Wiest insists that mastering psychology is more important than mastering charts or fundamentals. A trader who keeps calm and sticks to the plan will outlast the market’s emotional storms.

For me, this lesson is identical in cash-secured puts (CSPs) and covered calls:

Paper Losses in CSPs – Selling puts means seeing red when stocks drop, but as long as I have cash for assignment, those aren’t realized losses. The discipline is to hold steady.
Greed in Covered Calls – The temptation to “double down” or chase speculative calls is strong, but sticking to a consistent covered call plan outperforms over time.
Patience in Options – Just like commodities, CSPs and covered calls require waiting. Sometimes the best trade is no trade until the setup aligns with the system.
Discipline Wins – The real edge isn’t the math — it’s the ability to follow the math without letting psychology sabotage it.

The big takeaway: the hardest part of trading is yourself. Whether in commodities or options, success belongs to the trader who conquers fear, resists greed, and has the patience to let a sound system do its work.

Chapter 34: Specific Recommendations

In this chapter, Robert F. Wiest closes the book with a set of concrete recommendations for traders who want to apply scale trading successfully. Unlike earlier chapters that focus on principles, this one lays out direct, actionable advice.

Here are the main ideas from Chapter 34:

Stick to Commodities, Not Stocks – Wiest stresses again that commodities are safer because they can’t go to zero, while stocks can. He warns readers to avoid confusing the two.
Focus on Fundamentals – Only scale into commodities where supply and demand suggest strong long-term value. Avoid markets that are overpriced or dominated by speculative frenzy.
Use Wide Enough Scales – Don’t set scales so tight that you run out of capital during declines. Wide, patient scales with plenty of reserve capital are essential.
Respect Carrying Charges – Always adjust scales when rolling into deferred contracts so you don’t underestimate future costs.
Avoid Leverage Traps – Margin should be treated as a tool, not a shortcut. Overleveraging is the fastest way to ruin a scale.
Patience and Persistence – Above all, Wiest reminds readers that success comes from sticking to the plan through long stretches of drawdowns and dull markets. The payoff belongs to those who endure.

For me, these recommendations echo directly into cash-secured puts (CSPs) and covered calls:

Stick to Quality – I only sell CSPs on companies I want to own. That’s my version of Wiest’s “stick to sound commodities.”
Plan the Scale – My strike selection and position sizing are planned, ensuring I never overcommit and always have cash reserves.
Respect Time and Costs – Just as carrying charges affect futures, time value and volatility affect option rolls. I account for these in every trade.
Avoid Leverage – I don’t sell naked calls or use excessive margin. CSPs and covered calls are safest when fully cash-secured.
Play the Long Game – Like Wiest’s traders, I don’t chase quick profits. My edge compounds slowly, through patience and consistency.

The big takeaway: Wiest ends with a blueprint for disciplined, systematic trading. While his system was built for commodities, the lessons — plan ahead, manage capital, avoid leverage, and above all, stay patient — are exactly the same foundations I use in my CSP and covered call strategy today.

Conclusion

Robert F. Wiest closes You Can’t Lose Trading Commodities with a set of specific recommendations — practical, disciplined advice meant to keep traders from straying off course. But the book doesn’t end there. He also includes an addendum and a glossary, which serve as useful wrap-ups for the material.

The addendum reinforces key ideas with clarifications and updates, making sure readers fully understand how to apply the scale trading system in practice. The glossary provides clear definitions of trading terms, ensuring beginners can follow along and leaving no excuse for misunderstanding the basics.

Taken together, the chapters, addendum, and glossary form a complete package: a logical system, real-world guidelines, and the tools to understand and apply it.

For me, this book was more than just a manual on commodities — it was a mindset shift. It taught me the value of patience, discipline, bankroll management, and the power of building a system that doesn’t rely on prediction. While I trade cash-secured puts and covered calls today instead of corn or soybeans, the foundations I rely on trace directly back to what Wiest taught in these pages.

The big lesson that carries across markets: success isn’t about guessing right — it’s about having a system, managing risk, and staying patient long enough for your edge to play out.