How to Learn Commodity Trading from Scratch: A Beginner’s Guide

Commodity trading can be a profitable venture—but only if you understand the basics and approach the market with the right tools and knowledge. For beginners, the idea of trading oil, gold, wheat, or natural gas may sound complex or even intimidating. However, with the right approach, anyone can learn commodity trading and confidently enter this dynamic market. This beginner’s guide will walk you through what commodities are, how commodity markets work, and how you can begin your journey from scratch—whether you're a student, a working professional, or simply someone curious about alternative investments. What is Commodity Trading? Commodity trading refers to the buying and selling of raw materials or primary agricultural products. These are standardized and traded on regulated exchanges. Commodities are generally divided into two broad categories: Hard commodities : Natural resources like oil, gold, silver, and metals. Soft commodities : Agricultural products like wheat, coffee, s...