Everyone Must Read: Books are a great source of learning. Most people do not understand it and underestimate its 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 commodities 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!
10 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 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 margin calls, stop-loss, what are commodity prices and 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 excellent trading platforms?
Moreover, you will also learn from the different case studies, evaluation methods, market theory, signals, tools & techniques described in this book.
No doubt why this book secured the first position in our list of best commodity trading books!!!
If you are done with the basics and need the inspiration to get into the trading commodities markets, 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 commodity markets.
It would effortlessly make you understand how anyone can profit from the commodities trading 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 Books:
Another masterpiece by Carley Garner, this book is for mediocre level traders. It emphasizes significantly 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 favour. 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 options and commodity futures markets. 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 of gold.
It includes several case studies, monetary theories, and real-life examples to prove precious metals such as gold as an excellent investment.
The USP of this book is its 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 fully understanding market mechanics.
In other words, the traders whose only way is the market index funds can make their portfolio with the help of this book. This book can help you in understanding commodity trade in futures and options markets.
Some other contents of this fantastic book are the risks associated with commodities 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 trading market is different from other trading markets. It also help traders in understanding the market data fees.
One would also get an insight into the worlds of energy markets and precious metals market and their scope. We would consider it a must-read for commodity traders.
So, these were the best commodities books for every trader out there. If you are someone who is thinking about getting into trading 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.
Gold Is A Better Way:
Investing in commodities is different from other markets in only one way: You can touch or hold what you’re buying.
For instance, when you invest in precious metals. you can store gold bullion in your safe. But you can’t store stocks or crypto as they’re virtual assets.
In the same way, this book explains the benefits of investing in gold. It also tells beginner traders how does this market work? And what are the ins and outs of this financial market.
The Little Book That Still Beats The Market:
On the 7th place of our list of best commodity trading books is The Little Book That Still Beats The Market. This finance book on commodities trading comes with a plenty of advices. The author of the book Joel GreenBlatt explains all the time-tested philosophies of investing in commodities market.
The book offers a comprehensive knowledge and help traders in putting together a long-term investment strategy to face the ups and downs of the markets.
Trading Commodities and Financial Futures:
The book help traders in understanding the evolution of the commodity derivatives market in the past few years. It also help reasers in understanding the market volatility.
It might not be quite beneficial to experienced traders, but can help a lot to the beginner. They can easily learn the basics of the commodity derivative markets with this book.
Generally, people investing stock market may fear opting commodity investing because of market unpredictable nature, but this book help them overcome these fears.
The book has several investing strategies for beginner traders to help them become succesful in the multi commodity markets.
This one of the best commodity trading books help traders in understanding how hedging can be a great strategy for commodity markets. As we all are aware that hedging is quite a complex tool, using it may become easy by reading this book.
Hedging strategies can be complex, but practising makes it a good tool for risk management. The main reasons why it is considered a complex tool is the lack of knowledge and awareness about it. This book fills this gap.
The interactive diagrams, examples and case studies in the book explains the uses of this strategy with great ease. Overall, this book is a great source of learning for both professional and beginner trader.
Understanding Oil Prices:
This best-selling book answers some of the most basic questions about the oil industry and how it works. This is considered one of the best commodity trading books.
The author casts doubt on frequently held beliefs about how oil prices grow and fall, citing the 2008 crisis as an example of how popularly held beliefs fell flat on their faces, failing to explain how oil prices collapsed from $144 to $37 per barrel.
He claims that the oil sector is governed and formed by a variety of elements that are often overlooked by investors.
He explains how, in 2000, the oil futures market separated from the crude market, resulting in unprecedented levels of speculative investment in the industry.
Overall, it is a fantastic book on how the oil sector works and how to examine important economic and geopolitical issues driving the industry for over four decades, which will be extremely useful to professional investors.
The book explain the intricacies of the oil sector and help both novice and professional traders in understanding how the changes in oil prices takes place in the world.
The author has also discarded all the old beliefs cited by the industry for the sudden fall and increase in the oil prices globally.
Overall, this book is a great work for both professional commodity traders, investors and policy makers.
The Bottom Line – Commodity Trading Books
People have a misconception about the commodity markets being complicated, but the reality is, it is like any other trading market such as stock 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 commodity trading 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 commonly traded commodities are crude oil, gas, precious metals, natural gas, edible & eatables, commodity ETFs and agricultural commodities.
After understanding the basics of the commodities trading through these commodity trading books, if you’re planning to enter the financial markets, you can start with InvestBy.
The broker offers an enhanced trading environment and proper trading platform with industry-best research tools for commodity market analysis. You can start trading commodities profitably by developing successful strategies.