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How Long Does It Take To Learn How To Trade Commodities?


I often get asked - how long does it take to learn how to trade commodities? That is a tough question to answer. The short answer is that a diligent person can learn the basics of trading commodities in a couple months. The long answer is that it can take a lifetime to master.

Since most people just want to make a consistent profit from trading commodities, we will concentrate on the timeframe for achieving that.

The One-Year Mark

The one-year timeframe is the most critical for trading commodity futures. Most new commodity traders like to make huge sums of money right out of the gate. That usually gets them into trouble and almost guarantees them an inclusion into the 80 - 90 percent of people who lose money from trading commodities.

The first year of trading commodities is all about learning how to trade. Achieving breakeven at the end of year one is a victory. Most commodities traders who can at least breakeven after one year of trading commodities will often become profitable traders.

Consistently Profitable Commodity Traders

It will normally take about three years of trading before someone can become a consistently profitable commodity trader. It takes a good deal of research and experience before you can reach this level. If you cannot put in the time, effort and discipline, it is a good chance that you may never become a profitable commodity trader.

I highly recommend that new traders try to learn to trade from someone who is already a successful commodity trader. This will substantially speed up the learning curve and some good trading techniques will be learned. If might be difficult to find a trading mentor, but it will help immensely if you can find one. There are also some good trading schools and courses that can help, but choose carefully.

The best thing you can for learning how to trade commodities is take your trading slowly, but spend a lot of time on research. Read as many commodity trading books as possible. Expect many setbacks in the first year as it should be considered a learning year. You should become a successful trader after three years or you are likely not exercising the proper discipline. Also, you may not be putting in the proper amount of time is takes to learn how to trade commodities.

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