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We gathered the best commodity training books – the top 11 books. Whether you’re a beginner, an average trader, or a prospect, we included every book for every kind of trader.
Trading physical assets on the commodities market, more known as commodities training, is a great way to diversify your portfolio. Aside from crude oil, gold, copper, iron, and livestock, you can also invest in exchange-traded funds (ETFs) and futures contracts.
Trading commodities may seem ancient, but it is risky. Its prices fluctuate according to supply and demand. Unexpected events like natural disasters and pandemics significantly impact the latter.
Best Commodity Trading Books – Top 11 Books
1. Hot Commodities – Jim Rogers
One great book on commodities trading for beginners is Hot Commodities by Jim Rogers. The author is one of the most successful investors in trading history, which is one good reason to pick up this book. Not to mention, he’s also the co-founder of the Quantum Fund.
If you have considered commodity trading before but are skeptical, this book will convince you it is worth the risk. In the book, Jim tells how the late 90s was the golden age of commodities trading. He also explains why that time will be a hot place to invest for the coming decades.
Additionally, you’ll learn that his commodity index fund has seen a 165% gain. This gain makes it the single best index fund in the entire market.
Most investors stick to traditional stocks and bonds. However, they need to catch up on the security of the commodity market and the income potential.
Instead of investing lots of money, you only need patience and a great coach like Rogers. This book teaches you that you only need to learn about supply and demand, which significantly affect commodity prices. It also teaches how to utilize market fluctuation in your favor.
2. Commodities for Dummies – Amine Bouchentouf
Did you know that you can only invest in commodities if you fully understand how the market works? Commodities for Dummies is an excellent book for beginners who want to understand it comprehensively and how it works.
Moreover, it will teach you how to create your investment strategy. Once you learn this, you will no longer have to depend on opaque index funds and costly investment funds.
Aside from successful strategies, it also discusses common investment hitches in commodities trading. Here, you’ll learn how to diversify an existing portfolio to include commodities and invest in the most popular things, like precious metals.
So, if you need advice on managing the rewards and risks of commodities, we recommend this book. It will answer all the most common questions in commodity trading.
3. Gold Is A Better Way – Adam Baratta
If you’re a prospector looking for commodities trading books that will inform and entertain you, this book is a great choice.
Investing in the traditional stock market may work for some people. But for some, the fact that they cannot hold what they are buying seems skeptical. Even if it’s not gold bullion they’re carrying, there is security and peace of mind when you know you’re money is kept in a safe place.
Fortunately, Gold Is a Better Way suggests that regular investors should consider these traditional assets. It also describes the ins, outs, and reasons behind that advice.
Another great thing about this book is how it is written like a novel, despite being a comprehensive investment guide. It also includes visual cues, which makes it more fun to read. Lastly, this book will teach you about gold and how all markets operate.
4. The Little Book of Commodity Investing – John R. Stephenson
Next on our list of the best commodities trading books is The Little Book of Commodity Investing. This book is a concise yet complete guide to commodity trading and investing: two practicable alternatives to preferred choices of stocks and bonds and real estate as one of the fastest growing markets.
John Stephenson, the author, debates how commodities shape financial markets. He also argues how energy, metals, and agricultural commodities acquire a whole new significance in large developing economies. However, these still need to be understood carefully.
Additionally, it discusses the basic concepts related to commonly traded commodities. It builds on some fundamental concepts while explaining the unexplored potential of this vast market.
Above all, it serves as a specified guide to comprehend better why commodities are the next big thing and how to invest in them correctly.
5. Higher Probability Commodity Trading – Carley Garner
Another excellent book about commodities trading is this work by Carley Garner. Higher Probability Commodity Trading is a comprehensive guide to commodity market analysis, strategy development, and risk management techniques. These are all aimed at mediocre-level traders to favorably shift the odds of success.
Garner discusses some investment approaches and advanced strategies for commodities in this book.
Some investors believe that futures and options have greater relevance while dealing with debt instruments and equity. Regardless, Garner explains the practical techniques and tools for efficiently trading them.
One thing that separates the book from other commodities trading books is its rare synergistic approach of combining different kinds of analysis: technical, fundamental, sentimental, and seasonal. These all anticipate market price changes with greater accuracy.
6. A Trader’s First Book on Commodities – Carley Garner
Another book on commodities by Carley Garner that made it to this list is A Trader’s First Book on Commodities.
Garner, an expert on commodity trading, writes an eye-opening revelation on the commodity market. It does not only focus on commodity market analysis. Instead, she explains how an average investor can trade in commodities without mistakes, similar to a beginner.
Furthermore, this book introduces readers to a broad scope of tools, techniques, and notions that one can apply to trade in commodities successfully. However, this also depends on their exposure to specific types of entities, level of experience, and risk capital.
Another aspect the author discusses in the book is the risks involved with the failure of MF Global and PFGBest and what it means for investors.
Lastly, the book provides the latest info on advanced techniques and technological changes for commodity trading. You’ll also learn how traders can equip the correct tools to manage risk efficiently and make the right trading decisions.
7. Commodity Options – Carley Garner & Paul Brittain
The next book on our list is Commodity Options by – you guessed it, Carley Garner. This work is suitable for average investors as it simplifies commodity options to manage risk better.
In this book, traders will learn how to set it off to an extent, despite the market volatility’s high level. This includes detailed strategies and options developed to change the odds in one’s favor.
Moreover, readers will discover how commodity options fundamentally vary from stock options in this book. This is why traditional options strategies targeted at equities often fail when dealing with commodity options.
Therefore, learning about complete work on commodity options trading will further grow readers’ understanding.
8. Technical Analysis of the Financial Markets – John J. Murphy
This commodity book is not for beginners or average trades but for quants. Being able to track and analyze the commodity market is a priceless skill. Fortunately, Technical Analysis of the Financial Markets also teaches you how to apply computer and math skills to become an asset to any investment firm.
John Murphy discusses all the skills you need to master the markets. These skills range from advanced technical application and skills to graphical interpretations and various charting methods.
It also includes real-life examples to understand better and apply the skills.
9. Buy Gold and Silver Safely – Doug Eberhardt
Another great book on commodities trading is this work by Doug Eberhardt. It is a must-read for every investor who desires to make the most of long-term growth opportunities in the market.
It not only presents the average investor with the how and why of investing in gold and silver. It also discusses successful trading strategies.
To efficiently manage risk, learning about gold and silver is essential. Learning about it will also help you grab great opportunities and diversify your portfolio.
In the book, the author elaborates on some basic rules for investors to navigate the risk and opportunities ahead of them successfully. He does this so in trading in the precious metals market.
Additionally, it discusses a basic understanding of the commodity market. It explains how it is as a whole and how an investor should use reliable commodities to diversify his portfolio.
10. Trading Commodities and Financial Futures – George Kleinman
If you’re looking for a book to introduce you to commodity futures, give Trading Commodities and Financial Futures a read. This work gives you a better understanding of the rise of the commodities markets in recent years. It also explains how it functions and why it’s good to invest in it.
Seemingly, experts in commodities are no longer the realm. Instead, average traders and investors can also obtain knowledge of the basics and trade profitably within a short span.
This book offers several advanced trading strategies for traders and ways to personalize them successfully, making it perfect for beginners who want to trade commodities.
11. Market Wizards – Jack D. Schwager
Our last pick for our list of the best trading commodity books you should read is Market Wizards if you’re wondering why the best investors are so successful. Jack D. Schwager, the author of this piece, explains that their success is not by some formula, luck, or inheritance. Instead, it’s a combination of all.
However, this book also points out that all big-time investors also have a stable footing of theory and knowledge. They also possess a great attitude and grasp of investment strategy.
Once you pick up this book, you will also learn from the investors and apply what you’ve learned to be a millionaire like them.
Instead of writing it as an ordinary, step-by-step book, Mark Wizards writes it to inspire readers. He also covers everything in categories, from equities, futures and economy-wide trends.
Final Words
Trading on the commodity markets does not only include stocks and bonds. It also includes metals, natural gas, and livestock. The market will allow you to explore and grow, and the best commodity trading books mentioned above will help you achieve that.
