Commodity Market Trading and Investment offers practical knowledge, analysis, trading techniques and methodologies required for the management of key international commodities. The author explores each aspect of commodity trading in detail and helps the reader to implement effective techniques to build a strong portfolio. Early chapters set the current scene of commodity trading markets before going on to discuss the fundamental instruments and tools used in navigating commodity markets.
Commodities are the world’s raw materials. As natural resources, they are used in the production process of all manufactured goods, putting them at the heart of the economic cycle. The vital role in the world’s economy, combined with the specific characteristics of commodity markets, make this an asset class that can add real value to your investment portfolio. Commodities are materials in every product we use: the grains in our food, the wooden table on which that food is served, the steel in the car outside the restaurant. There are many different commodities and many different commodity classifications. From non-perishable or “hard” commodities, such as metals like copper, lead, and tin, to perishable “soft” commodities, such as agricultural products, coffee, cocoa, and sugar.
Increased competition for natural resources is one of the inevitable consequences of globalization. Previously, this has manifested itself mainly in terms of energy security, though in recent years a succession of poor harvests among key producers has even brought volatility and higher underlying prices to global food markets as well.
The problems inherent in tight supply markets have on occasion been exaggerated further by government actions intended to protect their own national resource security. What is different about resource competition in the twenty-first century is its global nature and the speed with which it is intensifying. Price volatility has become the new “normal” situation across energy and other commodity markets. This volatility presents challenges for the markets and opportunities for investors and traders. These opportunities and challenges encouraged me as a commodity market professional to author this book to help investors explore the world of commodity market investment and trading.
- Setting the Scene
- Investment and Trading in Commodity Markets
- The Financial Commodity Markets
- Trading Versus Investment in Commodities
- Hedge Funds and Alternative Investments in Commodities
- Understanding the Fundamentals of the Commodity Markets
- Applied Technical Analysis for Commodities
- Building a Disciplined Trading Approach
- Trade Like a Professional
- Trading Psychology
- Commodity Market Risk Management