How to become a commodity trader

I see a lot of posts asking about how to break into commodities so I will share my experience. I work as a trader in agriculture markets, but I would bet this translates to other commodities.

Step 1: Move to the middle of nowhere and take an entry level job. I had to move far from home and take a job as a merchandiser to get started. To get your foot in the door you have to do what others dont want to do, and often live where a lot of people don’t want to live.

Step 2: Work entry level jobs for a few years. You can’t just become a trader, you have to learn the nitty gritty details of the business first. You won’t become a successful commodities trader without knowing how the supply chain works.

Step 3: Move a couple more times, and learn more about the business. Rotating through a few roles seems common in commodities. Knowing different areas of the business gives you a strong foundation.

Step 4: If you make it this far and are still in the business, eventually you will come across an opening on a trading desk. Take it, and provide value to the guy in charge. Once he trusts you, you will get more and more responsibility in the trading decisions of the company.

I don’t think commodities trading is as glamorous as people think. It’s a competitive business and the only way to learn is from the ground up. It doesn’t really matter what you studied in college, what matters is the willingness to do what others won’t. It is an interesting career path with lots of opportunity, but it’s not a get rich quick career.

This is just one man’s experience, I am sure there are other ways.

Good luck, CB