When Eddie Murphy and Dan Akroyd made the movie, “Trading Places,” little did they know how much of an impact it was going to have on the American psyche, in particular how the average American understood the concept of commodity trading. Once that movie had made itself a success and secured a place in American classic comedy for perpetual replay, a funny thing happened. One, people all over the U.S. began to associate pork bellies with the stock market without really knowing why, and everyone believed that commodity trading involved a bunch of crazy people in suits screaming and waving bits of paper at each other.
A Bit Less Exciting Than the Big Screen
Real commodity trading like the financial insights taught by LTG Trading LLC isn’t anything like what Hollywood made it out to be in the 1980s with the above actors. Today, modern commodity trading is very much a computer analysis practice. Folks from individual traders to corporate brokerage trading houses work over computer screens day and night, revolving between different markets internationally, to take advantage of supply and demand differences from one hour to the next and from one market to another. Those differentials end up becoming the fertile ground for making profits buying and selling commodities, as well as the risk of losing considerable money as well. It can be a bit complicated, which is where LTG Trading LLC comes into play as an educator.
Econ 101, Eat Your Heart Out
As LTG Trading LLC guidance points out, a key factor in commodity trading is really the heart and soul of an economist and similar, believe it or not. Understanding where a market has been, what is changing at the macro level, and then how it will move pricing at the micro-level between industry players is key. That in turn means wading through a lot of mundane forecast reports and expectations analyses when not watching the volume movements during trading hours. LTG Trading LLC frequently points out that report subscriptions alone are a mainstay of information acquisition.
Experience Matters the Most
While a good amount of the technical mechanics, terminology, and jargon can be learned from books, videos, and webinars, the feel of the commodities markets takes time and experience. That simply can’t be substituted by other means. And it’s oftentimes the difference in magnitude of profits versus the rookie mistakes of a beginner trying to apply generic model strategies. In some respects, commodity markets are like war; one general noted the best plans go to hell in a basket within the first minute of combat.
Seeing the Big Picture Consistently
For the most part, however, commodities trading like that taught by LTG Trading LLC and similar tends to be fairly dry stuff. When the economy is doing well, more durable goods and similarly-related materials tend to be in demand. When the economy is running poor, demand spikes for basic necessities in terms of fuel and food. This doesn’t take a degree in rocket science to understand. The real question is, how good is someone at taking that information and applying it with investment decision-making going forward. That then becomes the skill folks want to have in commodities trading over time.