The Advantages of Commodity Day Trading

John Carter

John Carter

Apr 20th 2018  .  3 min read

In this post:

    • What is one of the major advantages of commodity day trading?
    • What do we mean by: “getting with the market that you are trading”?


Would trader considers becoming a day trader, it would be wise to consider looking into the commodities markets. The commodities markets offer many advantages that other markets simply don’t. Because of this, commodity day trading may just be for you.

One of the major advantages of commodity day trading is that you can focus on one or two markets. Typically what happens is that the fundamentals push your chosen commodity in one direction or the other for great lengths of time. For example, if you are a coffee trader and happen to know that South America is having issues with flooding or even hurricanes, you know that the overall price of coffee should rise as time goes by.

Because of this, you know that you are looking for bullish setups in the coffee futures markets. You can simply sit and wait for the proper setups to occur, and take advantage of a when they do show themselves.

Another one of the major advantages of day trading the commodities markets is that you can get very personal with the market that you’re trading. What is meant by this, is that you can get to know your market very well, without a lot of the overall distractions that can come with other marketplaces like the stock market. Many stock traders get burnt by issues affecting companies are there not even trading. As an example, if you are trading tech stocks, you may find that bad news for Apple is suddenly damaging the price of your stock.

When you are trading corn, you are basically worried about the crop that is coming up, and perhaps the value of the US dollar. Most of the other noise in the marketplaces simply will not interfere with your trading. Because of the lack of noise, you can focus on the technical and fundamental reasons that a commodity may or may not move in a particular direction.

This simplifies the entire process quite a bit as commodity markets almost seem to be “insulated” against most of the other drama they can appear during the typical trading day. This gives the commodity day trading professional quite a bit of an advantage over some of the other types of day traders. It also makes it easier to keep track of news that may or may not affect your market, as it is very specialized.

Because of the advantages listed above, new futures traders tend to stick to just one market anyway. Quite often they find that one was all that was needed anyways.


Q: Can you day trade commodities? 

A: Yes. In fact, day trading commodities can be a good approach for beginner traders.   

Q: What are the benefits of commodity day trading?

A: While day trading commodities you can focus just on one or two markets, and hence get to know the markets very well.  

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