• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Daniels Trading

Independent. Objective. Reliable.

Top Navigation

  • Open a Futures Account
  • Sign Up
  • Log in
  • 1.800.800.3840

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Careers
    • Risk Disclosure
    • COVID-19
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
    • Request Pricing
  • Hedge
    • DanielsAg Mobile App
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Hedging Videos
    • Request Pricing
  • Invest
    • Automated Strategies
    • Managed Futures
    • Request Pricing
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • The Cullen Outlook
      • Data Feed Trade
      • Jarboe Trading Journal
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • The Swine Times
      • Technical Ag Knowledge
      • This Week in Grain
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • Small Exchange Resources
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
    • Webinars
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • GAIN Capital Futures
    • StoneX
  • Contact
 

How to Learn Commodity Trading

October 5, 2020 by Daniels Trading| Futures 101

Commodity futures offer market participants a variety of deep, volatile markets. Whether you’re trading metal, energy, or agricultural contracts, each day brings the promise of opportunity. If you’re an active trader searching for new frontiers, don’t miss out on the potential of the commodity futures markets.

Want to Learn Commodity Trading? Check Out These Three Resources.

Before you can trade anything successfully, it’s essential to understand the basics. Fortunately, you’ll find many different tools designed to acquaint market newbies with the idiosyncrasies of commodities.

In the contemporary marketplace, individuals commonly use three types of resources to learn commodity trading: formal training, online educational materials, and working with a broker. Read on to learn how these resources can help you get up to speed quickly without relying on other information sources.

1. Formal Training

Formal training is one way to learn commodity trading. Here are three popular training methods for aspiring commodities traders:

  • Seminars: In-person and online seminars provide insights into entrepreneurship, real estate, and even futures trading. Futures seminars are available periodically, in an online, local, or regional capacity.
  • One-on-one instruction: Much like taking guitar lessons from a musician, you can take advantage of the services of a dedicated futures trading instructor. Although this mode of learning may be the most efficient, it’s not the cheapest option.
  • Proprietary firms: Joining a proprietary trading firm is a tried-and-true approach to becoming a professional commodities futures trader. Prop firms teach traders their customized approach to the markets before looking to the trader to generate consistent returns. Joining a prop firm may require an initial deposit and is largely a sink-or-swim proposition.

These three types of formal training are effective ways of learning to become a commodities trader. Each offers person-to-person interaction, an opportunity to trade, and third-party evaluation. However, formal training can be expensive and require substantial up-front capital to get started.

2. Online Educational Materials

If you’re not up to paying the freight on formal training or joining a prop firm, then self-educating is a viable option. In the online space, thousands of resources are available to help you learn commodity trading. Here are a few that can be especially useful:

  • Expert blogs
  • Professional webinars
  • In-depth tutorials
  • Comprehensive trading guides

Motivated individuals will be able to find an affordable, rock-solid commodity trading curriculum exclusively online. For example, Daniels Trading offers a robust educational suite, as does the Chicago Mercantile Exchange’s CME Institute. These two portals are great places to become fluent in commodity futures trading.
Looking for detailed trading information to help you stay informed? Our guide, filled with key influential factors, history, and background information, will help you stay ahead of the uncertainty in commodity markets! Get this guide today.

3. Work with a Broker

Perhaps the best way to learn commodity trading is by commissioning the services of a competent broker. A good broker has the experience, expertise, and professionalism to enhance your education in a timely fashion. In addition, there are several things that only your broker can provide:

  • Dialogue: Establishing a two-way dialogue with a commodity futures broker can be extremely beneficial. Trade ideas, ongoing market analysis, and regular insights—plus the standard client-broker Q&As—are great for learning all about the commodities markets.
  • Trade simulator: Your broker can give you access to a trading simulator and a practice account. Simulators are used to observe the commodity markets in real time, place orders on the market, and manage positions―all risk-free. In reality, working on a simulator may be the best way to learn commodity trading.

Talking with a true market professional and practicing on a simulator are excellent ways of learning how to trade commodities. If you’re just starting out, don’t forget to consult your most valuable resource: your broker!

Want to Learn More About Commodity Trading?

The global commodities markets are dynamic, complex atmospheres. To succeed in trading raw materials, such as crude oil, gold, beef, or wheat, your education needs to be comprehensive and ever-evolving.

An indispensable commodity market educational tool is Don DeBartolo’s Market Spotlight e-book. Available at Daniels Trading, Market Spotlight is a complete look at 40+ commodity markets, their history, key influences, and much more. Download Market Spotlight and get three months of Trade Spotlight absolutely free!

Market Spotlight Ebook Daniels Trading

Filed Under: Futures 101

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

Subscribe To The Blog

Footer

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Contact Us

Daniels Trading
100 South Wacker Drive, Suite 1225
Chicago, IL 60606
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Trustpilot

Copyright © 2021 · Daniels Trading. All rights reserved.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

  • Risk Disclosure
  • Privacy Policy
  • California Residents Privacy Notice
  • Terms of Use
  • Back to top