Why are more people considering a commodity training course? The answer is pretty straightforward. Many investors are seeking to gain an edge on the competition and for many this means learning how to invest and trade commodities. Commodity trading is very different from traditional stock trading and requires a whole new set of skills. There are people that can learn from forums or just reading books and articles, but for others a comprehensive commodity training course is the only real solution. Finding a quality course is possible, but the search can be lengthy. It is important to find out what the course teaches, who the teacher is and what hidden profit motives exist.
A proper education in commodities requires a real grasp of the market. Most investors have a passing knowledge that a commodity is something fairly uniform in quality from producer to producer and is generally a raw material of some kind. Beef, oil, natural gas and precious metals are all common commodities, but increasingly things like foreign currencies are also commonly found on the commodities market. A proper background course in commodities will teach about the various kinds of assets and how they are treated with regards to futures and spot commodity purchases.
A good commodity training course will discuss strategy is both an up and down market and will provide and understanding of buying gold or other materials when the spot price is above or below the futures market. It will also provide a trader with a background picture about global trading, federal regulations, and potential hazards of dealing in commodities. Be prepared for some serious studying and background work. This subject is very deep and requires serious thought and effort to master.
The best teachers of a commodity training course will be someone that is a working commodity broker. Experience and real-life examples are crucial to understanding and only a licensed commodity broker can provide all the gritty details to gain an understanding of life in the trading trenches. Try to find an instructor who has passed the Series 3 National Commodity Futures Examination given by the Financial Industry Regulatory Authority (FINRA). An instructor should ideally be registered with the Commodity Futures Trading Commission (CFTC), and hold membership with the National Futures Association (NFA). This will let any student know that the teacher is imminently qualified to over sound advice and instruction regarding commodities. This can be thought of as similar to having a CPA teach an accounting class.
Lastly, any good commodity training course is best as a stand alone entity. Many online companies offer courses and larger urban areas may boast local classes. All too often, though, the course is offered through a brokerage firm with the understanding that the students will open accounts. Do not be pressured to give business to anyone. Try to locate a class that operates independently. This is the only way to assure that you are getting unbiased commodity advice.
Remember, investing in commodities is very risky. It is a great way to diversify and as a hedging tool, but only if the risks are understood. A commodity training course should only be the first step in preparing for trading in this way. Find an online resource that offers a dummy account that you can practice strategy on before committing real dollars.