How to become a commodity trader (by a former commodity trader)

Introduction

This tutorial will guide you through three distinct paths to becoming a commodity trader, as outlined by former trader Damien Würsten. Each path offers unique challenges and opportunities, allowing you to choose the one that best suits your background and aspirations. Whether you're just starting or looking to transition into this field, this guide will provide actionable steps to help you navigate your journey.

Step 1: Explore the Unfair Path

The unfair path involves leveraging personal connections and networking to break into the industry.

• Build Relationships: Connect with professionals in the commodity trading sector. Use platforms like LinkedIn to reach out to traders and industry experts.
• Seek Mentorship: Find a mentor who can provide insights and guidance. This could be someone you know or a connection through networking events.
• Utilize Connections: If you know someone in the industry, ask for introductions or recommendations to get your foot in the door.

Practical Tip: Attend industry conferences or seminars to meet potential contacts and expand your network.

Step 2: Pursue the Golden Path

The golden path typically involves formal education and internships.

• Educational Background: Consider pursuing a degree in finance, economics, or a related field. This foundational knowledge is crucial for understanding market dynamics.
• Internships: Apply for internships at trading firms or financial institutions to gain practical experience. This exposure can significantly enhance your resume.
• Certifications: Look into certifications related to trading or commodities, such as Chartered Financial Analyst (CFA) or similar qualifications.

Common Pitfall: Avoid neglecting your studies in favor of networking; a solid educational background is essential.

Step 3: Navigate the Path of Hard Knocks

This path is characterized by learning through experience, often involving entry-level positions.

• Entry-Level Roles: Start with positions such as an analyst or assistant in trading firms. These roles may not be glamorous but are crucial for gaining industry insights.
• Hands-On Learning: Use every opportunity to learn from seasoned traders. Observe their strategies and ask questions to deepen your understanding.
• Resilience: Be prepared for setbacks. The journey can be tough, but persistence is key to overcoming challenges.

Real-World Application: Many successful traders began their careers in low-level positions, gradually moving up the ranks through hard work and dedication.

Conclusion

Becoming a commodity trader can be achieved through various paths, each with its own set of challenges and rewards. Whether you choose the unfair path through networking, the golden path through education and internships, or the path of hard knocks through hands-on experience, each route offers valuable lessons.

As a next step, consider which path aligns with your current situation and start taking actionable steps today. Utilize available resources such as networking events, educational programs, and industry insights to build your career in commodity trading.