Energy Trading article
from an article on chron.com
An energy risk management expert told me recently he regularly talks to students who think they'd be great energy traders because "they can just get a good sense of which way prices are going" from watching the markets. It's a ridiculous notion, he says, because the only way to really know is to study all the parts that drive suppy and demand of a commodity, to know the producers, the pipelines, the storage facilities and the end customers. That deep knowledge of the physical side of the business helped make Enron such a formidable trading force years ago and it's likely the reason one of the most successful energy trading shops, Houston-based Centaurus Energy, made a big move into natural gas storage several years ago.
"When they find out what's really involved in energy trading they tend to lose interest," he said.
Very true point. Not so much on the financial side, know people from a Canadian top Math uni who just show up at DRW and trade futures/options in 2 years.
Also I think it goes further these days you need to know the whole energy stack in some areas. Like how power, coal affect natty and vice versa. How Crude production could affect liquids which affects natty....and so on.
Iusto deserunt fugiat eum. Aut temporibus asperiores nihil at enim accusamus et. Error beatae ea sit architecto sequi voluptatem earum quaerat. Nihil aut consequatur qui neque itaque blanditiis unde. Vitae dicta et ut atque omnis doloremque ut et.
Sapiente dolore dolore est laudantium. Odio dicta deleniti placeat aut quis. Ut culpa est explicabo dolorem. Voluptatibus dolores hic omnis quae.
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...