5 Commodity Trading Books Everyone Must Read: Books are a great source of learning. Most people do not understand it and underestimate their value. But, honestly speaking, books are the shortest summaries of one’s life experiences and the best pieces of advice. Now, imagine getting one person’s life learning in only a few days!!!.
Now, commodity trading is another underestimated market. Most people are over-obsessed with stocks, forex, and bonds. But, there’s a lot of potential in product trading too. If one has the skills and knowledge, he can make the right amount from it.
Now again, books play here a significant role. Before starting anything new, we must read about it, as much as we can. So, below is an astounding list of five books that every potential and existing commodity trader must read!!!
Please have a look at them!
5 Best Commodity Trading Books for Beginners
A Trader’s First Book on Commodities: This first book on our list, by Carley Garner, should be the first choice for anyone thinking of entering in the commodities market. This essential book about commodities understands and answers the most common problems and queries, most traders go through.
Garner herself was an expert in the commodities market for years and has worked with people of every type. Thus, it became easy for her to share some invaluable experiences about the trading market.
The book emphasizes that before entering the market, everyone should be crystal clear about the fundamentals. It answers some fundamental questions like what is the commodities market, its history, mechanism, what are margins, stop-loss, how do all these work? Further, it gradually moves into your nerves and tells you why one should invest, how to book profits, what are the excellent trading platforms?
Moreover, you will also learn from the different case studies, evaluation methods, signals, tools & techniques described in this book.
No doubt why it secured the first position here too!!!
If you are done with the basics and need the inspiration to get into the trading market, then consider Hot Commodities, by Jim Rogers. Jim himself is one of the most exceptional investors of all time and co-founder of the Quantum Fund. His commodity index fund has seen a commendable 165% gain and is the best index of all time in his market. It would effortlessly make you understand how anyone can profit from the commodities market. He also believed it to be the world’s best market.
The book could give you a butterfly in your stomach like feel. The author also scrapped the several myths which people are generally scared of, including that the commodity market is not perfect for long term gains and is very unreliable. He also emphasized that people do not know the enormous potential of this place and are losing opportunities by themselves.
Higher Probability Commodity Trading
Another masterpiece by Carley Garner, this book is for mediocre level traders. It emphasizes significantly on the research and analysis part and is a useful guide for the same. It would help you develop trading styles, manage risks, and shall teach you how you can turn your odds in your favor.
If you are good with the foundation part and looking to gain more money and reduce risk, then you can consider it. It would introduce you to several mathematical strategies and would explain to you the importance of ‘future and options’ in the commodities market. We are pretty sure that after completing it, you would be better at predicting the market movements.
The New Case for Gold: If you are not a fan of gold investing, then we recommend you to be away from this legend. This master book, by James Rickards, on the importance of gold as a wealth-creating asset, can hamper the distrusts on gold.
It includes several case studies, monetary theories, and real-life examples to prove gold as an excellent investment.
The USP of this book is their logical, factual, and brief explanation. All the points explain concerning economic principles. Lastly, it would also cite to you a great scene of the 2008 recession, when every market crashed but gold shined!!!
Commodities for Dummies
This book would help you understand and examine the obstacles of commodity trading. Moreover, it would assist you greatly in setting your style and trading strategies. In other words, the traders whose only way is the market index funds can make their portfolio with the help of this book.
Some other contents of this fantastic book are the risks associated with trading and how to deal with them. It would also help traders on how to adequately diversify their holdings, and in what sense the commodities market is different from other trading markets.
One would also get an insight into the worlds of energy and metals and their scope. We would consider it a must-read for commodity traders.
So, these were the best books for every commodity trader out there. If you are someone who is thinking about getting into commodities, then you must start by reading the original books like above. You would get great help and prevent falling into the common pitfalls which might cost you bucks.
The Bottom Line – Commodity Trading Books
People have a misconception about the commodity market being complicated, but the reality is, it is like any other trading market. It can be amazingly profitable for people willing to dedicate some time with persistence. The ideology is simple here; as you trade company shares in the stock market, you trade products here.
A better way to start would be by starting with these books, or any other you like. But, unless you will not familiarize yourself with it, how are you supposed to go with it? And, if you think commodity trading is small, then my friend, you make mistakes here. It is a multi-billion dollar industry. Surprised???
Some ubiquitous traded commodities are oil, gas, metals, and edible & eatables.
Start with a book now!!!