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A New Breed of Commodity Trader

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Commodity Trader

A Modern Commodity Trader may Never See the Pit

The trading floor of a commodity exchange looks like a furry of organized chaos that seems impenetrable to an outsider, but the new breed of commodity trader has a much more peaceful work environment. Technology has revolutionized nearly every aspect of people’s lives and investing in the futures market is no different.

The modern commodity trader who manages his or her own account will likely do so from the comfort of a home office or even on the go with any number of mobile devices. The activity that is depicted in film or by the media associated with a commodities trading pit is of little concern to this new breed of investor.

What does the Commodity Trader Actually Do?

The work environment for a commodity trader can be whatever that person desires so long as he or she has sufficient access to information and a direct connection to his or her broker. Much of the trader’s time will be spent sifting through market data that may¬† include technical charting patterns or fundamental market research regarding the individual’s particular market of interest.

Once the modern commodity trader has completed his or her research the individual’s broker is responsible for the execution of the trade. The broker provides the infrastructure and manpower necessary to overcome the chaos of the trading pit. For the cost of a commission, which varies depending on the services being provided, the broker will fill and confirm to the investor the results of each transaction. This leaves the development of a profitable trading strategy as the principle task and goal of the modern commodity trader and finding quality information is his or her primary concern.

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