Must-Read Commodity Trading Books

These 4 books offer indispensable knowledge

Whether you're just starting out in the world of trading commodities or you've been trading for years, there are a number of books out there that every trader or investor should read. Or maybe you're just thinking about trading and want to learn more before you jump in. Anyone interested in the commodity and futures markets should find these books extremely beneficial.

Even if you consider yourself an ace and you're comfortable with your abilities, it's always helpful to expand your horizons by incorporating the knowledge and experience of others into your own mental database. 

Reminiscences of a Stock Operator by Edwin Lefevre

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Reminiscences of a Stock Operator is an all-time classic on trading.  The original version came out in the 1920s and it highlights the legendary trader Jesse Livermore. The basic principles of trading haven't changed much over the years. Jesse Livermore made and lost several massive fortunes in stocks and commodities. This book is entertaining and anecdotal and remains one of the best books ever written on the subject of trading. It's also available in an e-book version. 

Trading by the Book by Joe Ross

Trading by the Book is the complete publication on trading. It's the kind of book you'll go back to again and again when questions pop up.

Joe Ross has been a trader and an educator for decades, and he conveys his trading methodology and approach to markets in a clear and concise fashion. A down to earth approach to teaching about the markets makes this work particularly appealing. 

Come into My Trading Room—A Complete Guide to Trading by Dr Alexander Elder

Come into My Trading Room is an excellent book about the workings of the mind of a successful trader. Dr. Alexander Elder isn't just a trader. He's also a practicing psychiatrist, so there's a psychological angle to trading and to this book as well. It does a great job of explaining the mental aspects of trading.  

Understanding our motivations can help to improve trading and investment performance. Dr. Elder's work is comprehensive, covering everything from formulating a trading strategy to implementation. He describes his trading strategy in great detail so the reader is able to develop a solid trading plan. Goodreads calls the book "the trading bible for the new millennium." 

How to Make Money With Commodities by Andrew T. Hecht

Published in 2013, How to Make Money With Commodities is a guide for investors and traders of all levels who are looking to understand the world of physical and derivative trading in commodities. The book covers everything from fundamental to technical aspects of the market. It gives a brief synopsis on the major commodity sectors as well as individual commodities within each sector.

Developments in the commodity market affect our daily lives as well as our investment portfolios. This book will provide you with a background in the raw material markets and an understanding of both the physical and derivative worlds.

Do Your Homework First With These Books

Do your homework if you're preparing to trade in the commodity markets. Learning from others and reading books, articles and research that's available on the internet is a great way to enhance your education about commodity markets.