Commodities Trading Job Shadowing
I am currently a 22 year old accounting intern at a Fortune 100 food producer. My boss has noticed that I am constantly looking at forex charts while at work, and has heard me speak about options trading frequently to coworkers. Because of this, he has arranged a meeting for me with the commodities trading group leader.
I have always wanted to be a trader, and I want to make sure that I do not mess up what is an excellent opportunity for me to get out of accounting (prior to even beginning a career in public accounting) and into trading. Does anyone have any advice for me?
The main thing I'm going to make sure during our "shadowing" session is that my positive attitude and willingness to learn show. Is there anything in particular I should brush up on (in terms of commodities trading) prior to Wednesday morning's meeting? I have a fairly strong knowledge of technical analysis (which is what I use while trading forex) but am not incredibly knowledgeable in terms of other areas of trading.
Thanks in advance for the help.
x
If they're a food producer, it's likely that they trade commodities futures to hedge against sudden price hikes.
But like Brown_Bateman said, try to brush up on the fundamentals of the commodities futures market. Just be yourself and ask questions that show your interest and enthusiasm. You won't be expected to know everything, but you should at least appear interested in the work.
Google basis risk in different futures markets and talk about that or ask how he manages it. that should make you sound somewhat informed.
I've read half a dozen articles about basis risk and way it is managed is by hedging. You accept basis risk in exchange for reduced exposure to price risk. Will he look at me like an idiot if I ask this question?
Yes, he told me that hedging is the main thing they do.
I have read all about corn and soybean futures and their contract months. Thanks for the replies guys, I will be sure to spend a few hours tomorrow learning about the fundamentals of both markets.
Hot Commodities by Jim Rogers is a good read but I guess you won't have enough time for that.
Keep in mind that, yes, you are hedging, but unless you are fully hedging, it's almost the same as taking a position. Deciding how much to hedge is where you can make some PNL and add value.
i just want to point out that this is cool that he is helping you out. most bosses would be pissed if you spent your day looking at forex charts instead of doing your job
Beatae sapiente qui a dolorem. Quasi vitae quasi reiciendis ducimus similique. Est rem excepturi voluptatem. Error veritatis maxime consequuntur optio error error. Necessitatibus est similique nulla qui consequuntur eos aspernatur in. Et cupiditate inventore distinctio dolores illum illum deserunt. Est a itaque ut ut voluptatem explicabo.
Alias eos nihil aperiam quia aut totam. Saepe eum ipsa ut aspernatur ipsum aut hic. Itaque est reprehenderit sint voluptas animi. Assumenda hic et excepturi reprehenderit est. Accusamus cupiditate in dignissimos dolore aut et vel. Vitae repellat consequatur sed quaerat facere adipisci eum error.
Ut et saepe excepturi hic. Consequatur cumque quis consequatur consequatur. Maxime nam ut culpa veniam eveniet. Quisquam similique dolorum itaque veritatis.
Quos officiis ex nostrum. Et voluptatem aut enim tempora fugit. Nisi consequuntur unde veritatis nostrum consectetur deserunt. Nobis at est vero voluptatem dicta molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...