Commodity Markets Made Easy: Commodity Trading Course

You may fear entering commodity markets thinking about the risk it involves. You may also have heard that traders face huge losses in commodity trading.

Well, any form of trade in any kind of securities involves risk, whether it is equity, commodity or forex. While the risk is common, you must also know that the returns from each form of investment vary.

What is most important for you is to learn commodity trading rather than taking tips here and there and taking up trades.

You need to be very clear about the fundamentals of commodity markets, the exchanges on which they trade, understanding the global markets, the impact on the prices of various commodities, understanding the overall market movements, etc.

Now, all of this requires the right mentoring & so we have curated a commodity trading course, which is a step-by-step recorded program to give you a hands-on understanding of the basics and touch upon the practicals of commodity trading. 

Please find below the topics covered in this commodity trading for beginners course:

Topic 1: Basics of Commodities

• You will gain an in-depth understanding of commodity markets and their classification based on metal, energy and agriculture. 
• Understand the physical market and its value chain. 
• Learn about the regulations of the physical market and the electronic spot exchange. 
• Get insights into the factors affecting the prices of commodities and various markets, including forwards, futures, and exchange-traded forwards.

Topic 2: Role of Derivatives

• You will understand the derivatives contract and the participants of the derivatives market.
• Learn about OTC &exchange-traded derivatives.
• Gain an introduction to Futures and Options.
• Explore derivatives on weather, credit, insurance, energy, interest rates, currency, etc.
• Study the payoff of long, short, etc., in futures and Options.
• Understand the role of multiple market participants.
• Understand different types of traders and styles of trading.

Topic 3: Get Exposure to Global Exchanges

• Here, you will explore global exchanges, the evolution of Indian exchanges, especially NCDEX, functions, and roles of exchanges. 
• Dive into the pricing and the role of speculators and arbitrageurs in price discovery.
• Look at clearing, settlement, and market surveillance aspects.

Topic 4: Pricing of Derivatives

• You will now explore the determinants of forward and futures prices.
• Gain an introduction to investment and consumption assets, convenience yield, cost of carry and its impact.
• Learn the concepts of convergence, backwardation & contango. 
• Learn hedging principles, price risk management, long and short hedges, and basis risk.

Topic 5: The Philosophy and Rationale Behind Trading

• Here, you will gain a comprehensive understanding of technical analysis and how supply and demand work to determine the price of the stock.
• Explore the philosophy of technical analysis and various chart patterns, such as line charts and candlesticks.
• Learn how to identify the different trends of the market, i.e., uptrend, downtrend and sideways. 
• Understand the concept of price over time, volume and open interest.

Topic 6: Explore the different Chart Types

• You will learn various types of charts, including line charts, bar charts and Candlestick charts. 
• Gain insights into reading and interpreting these chart patterns effectively.

Topic 7: Drawing and Interpreting Trendlines

• You will understand how to draw trendlines for both uptrends and downtrends.
• Learn how to identify and interpret the trendlines in the context of price movements. 
• Learn how to spot support and resistance by using trendlines.

Topic 8: The Role of Volume & Dow Theory

• You will understand how volume analysis can confirm trends, signal potential reversals, and validate breakout patterns.
• Get in-depth knowledge of dow theory and how it works. 
• Learn the six principles of dow theory. 

Topic 9: Classical Chart Patterns: 

• You will understand the significance of reversal patterns and learn to identify them, including head and shoulders, double tops and double bottoms.
• Deep dive into the various continuation patterns like Symmetric, Ascending, and Descending Triangles, Wedges, Flags, and Pennants, along with their implications.

Topic 10: Candlestick Anatomy and Patterns

• You will now look at candlestick patterns, which give valuable insights into price movements.
• Understand the anatomy of a candlestick and explore patterns like the Hammer, Hanging Man, Bullish Engulfing, Bearish Engulfing, Morning Star, and Evening Star.

Topic 11: Technical Indicators

• You will delve into Moving Averages, Relative Strength Index (RSI), Stochastics, and Bollinger Bands and understand how you can use them in your trading strategies.

Topic 12: Application in Commodity Trading

• Here, you will learn commodity trading strategies.
• Learn how to combine different elements of technical analysis to make informed decisions and manage risk effectively.

Topic 13: Fundamentals of Commodity Markets

• You will now gain insights into the essential principles of the commodity markets. 
• Understand the concept of commodities as raw materials or primary agricultural products that are traded on exchanges. 
• Learn about the factors influencing commodity prices, including supply and demand dynamics, geopolitical events, weather conditions, and economic indicators.

Topic 14: Classification of Commodities

• You will explore the three primary categories of commodities, i.e., energy, metals, and agriculture and their subcategories. 
• Understand the various factors that impact their prices. 

Topic 15: Examine a specific scenario, the "Gold Market Shake Off"

• You will understand how external events can impact commodity prices. 
• Explore a significant economic crisis that led to a sudden decline in gold prices.