Good Books/Websites for Commodity Trading?

Hey everyone

I am sophomore and I want to learn more about trading commodities and commodities itself. Could you guys refer me to some great books and (preferably) websites to get started on commodity trading at a beginner's level?

Thanks

 

"Oil 101" is a must read. It's perfect for people entering commodities with preference to oil. I also find that "money week" post some pretty informative videos on youtube, they have commodity content on there. There are also some informative videos on "khan Academy". It largely depends on whether you want to trade physical or paper. If you don't know what I mean by that, then that's a good place to start!

 

Stefan,

I see that you are the author of "Oil Trader Words" and have a pretty solid background in the oil biz. What exactly do you cover in your book? I'm sure WSO monkeys would be curious to know as well

 

Good question Mr. Blender :) I just created a blog about the book. But here in short: The book is a 560 pages word-book or dictionary. A collection of all definitions and jargon I heard over the last 25 years in the oil business. It describes the meaning of the oil words as we use them in practice. I made the book because I think the oil market needed it. I see too many people forwarding messages with knowing what some words mean. They hear a traders talking about the forward market, the curve, the structure, backwardation or contango and when you ask someone to explain what is then they do not know or to try to look it up on Wikipedia. Well Wikipedia is good but each explanation consist of again lots of definitions. My book is an easy read and meant to make things fast to understand and to find. All words gathered in one book. It concerns physical trading of oil, moving the molecules. related to trading, logistics, refining, risk management, paper trading, oil qualities, HSE, documentation etc. When I started 25 years ago in the oil business is wished such book did exist, but after many years it was still not there. I hope my book serves the market. I call it often "my contribution to the oil market". So far good response only, hope to keep up to good work.

Stefan van Woenzel
 

Davis W. Edwards - Energy Trading and Investing

I've read alot of texts on the subject but this book is by far the most comprehensive/easiest to read without being trivial.

‎"Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to become the means by which men deal with one another, then men become the tools of other men. Blood, whips and guns or dollars."
 

Also...

George Kleinman - Trading Commodities and financial futures

... it covers metals and softs which the energy book doesnt

and of course... the Bible of Commodities...

Chicago Board of Trade - Commodity Trading Manual

‎"Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to become the means by which men deal with one another, then men become the tools of other men. Blood, whips and guns or dollars."
 
Best Response

These are just a couple off the top of my head:

The Candlestick Course

The New Commodity Trading Guide: Breakthrough Strategies for Capturing Market Profits - Not released yet but will be worth every penny because Kleinman is the man.

Hot Commodities : How Anyone Can Invest Profitably in the World's Best Market

Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, from Wall Street to Dubai - More of narrative non-fiction but provides good insights into oil trading.

Finally, there is a book entitled How To Sell Futures that was written by the CBOT many, many moons ago. It was worth it's weight in gold, and was therefore banned. It's not a trading guide per se, but it was the most cogent guidebook on the world of commodities probably ever written. Old timers like me all have copies, and they may occasionally find their way to eBay, so be on the lookout.

If I think of any others, I'll post them.

 

there are quite a few books out there about energy risk management. a few of them are actually pretty shitty (especially as they try to dumb down the more quantitative material), but all of them should give you at least some grounding in how the markets operate. Wiley has a good selection of books that you can check out.

 

Disclaimer: I am not a working professional.

I read the Rogers book and I found that it is a good book if you have had no exposure to the commodities market. It covers several different commodities such as softs, crude and gold. That being said, it is a very elementary book and covers mostly fundamentals. Rogers spends a lot of time selling you the fact that the commodities marketing is booming and you need to buy into his index. All in all, it's a good intro and a short read.

 

check out Jim Sinclair's www.jsmineset.com

i've learned so much from that website in the last 4 years, but it requires daily reading. much of the focus, but certainly not all, is on precious metals, so if that's your thing, you might find some good value in his daily commentary.

 

Oil 101 is an excellent read about the oil market. Natural Gas Trading is another good book for Natural Gas. You don't really need a more advanced book than the one you have. If you want to get more advanced you should read up on Options trading. Natenberg is a decent starting point, although I also like Exotic Options Trading by De Weert.

There are also a book called commodities trading but I am not sure how good it is.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

Power books I like:

Easy read: energy trading and Investing: Trading, Risk Management and Structuring Deals in the Energy Market by Davis Edwards

Medium/advanced: Electricity Markets: Pricing, Structures and Economics by Chris Harris

Hardcore: The Handbook of energy trading by Stefano Fiorenzani

I consider the last one hard to read because it deals with models and is rather maths intensive. All the previously mentioned books by the other WSO users are rather good as well ! Oil 101 is a must read if you ask me.

 
16rl:

Power books I like:

Easy read: energy trading and Investing: Trading, Risk Management and Structuring Deals in the Energy Market by Davis Edwards

Medium/advanced: Electricity Markets: Pricing, Structures and Economics by Chris Harris

Hardcore: The Handbook of energy trading by Stefano Fiorenzani

I consider the last one hard to read because it deals with models and is rather maths intensive. All the previously mentioned books by the other WSO users are rather good as well ! Oil 101 is a must read if you ask me.

Medium/advanced: Electricity Markets: Pricing, Structures and Economics by Chris Harris GREAT READ!!!

 
16rl:

Power books I like:

Easy read: energy trading and Investing: Trading, Risk Management and Structuring Deals in the Energy Market by Davis Edwards

Medium/advanced: Electricity Markets: Pricing, Structures and Economics by Chris Harris

Hardcore: The Handbook of energy trading by Stefano Fiorenzani

I consider the last one hard to read because it deals with models and is rather maths intensive. All the previously mentioned books by the other WSO users are rather good as well ! Oil 101 is a must read if you ask me.

Where is my banana lol
 

Most universities with good agricultural programs release studies and reports about the different crops in their respective areas. If you are willing to do some digging there is a wealth of information that you can get access to and leverage for free. That information won't help you with trade structure but it should help with the research aspect.

 

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