So Am I Ready To Start Trading Futures And Commodities?
Start with Fundamental Analysis of the Commodity Markets. Learn Economics 101 - Supply and Demand. That is the underlying formula to all Commodity prices. Some excellent sources to learn about commodities are CBOT, CME and NYBOT. Next, learn about the Commodity you plan on trading. Find out how soybeans are grown, when they are planted, when they are harvested, how rain and heat affect the crops. This will help greatly in Futures Trading as your intimidation level may recede through understanding and it may prevent you from getting suckered into trades by panic mentality.
Technical Analysis for Futures and Commodities
Technical Analysis is becoming more and more important in Commodity Trading. Virtually anyone can have "up to the tick" Charts and Technical Indicators. Short-Term Futures Traders rely heavily on Technical Analysis - especially Day Traders. Learn the basics of Technical Analysis as that may be all you really need to know to be successful. The key is to implement properly what you have learned. It may seem simple reading charts sitting at your desk in the evening drinking a beer, but in the heat of the action will you interpret them differently or panic? Many a Futures Trader has "choked" and panicked and made horribly decision when their money and ego are on the line. Therefore, it is imperative to implement proven techniques in a calm and controlled manner.
Additional Thoughts on Futures Trading
Some of the best traders in the world will tell you it is the most boring job they ever had in their life. They just wait, sometimes for days, for their Buy and Sell indicators to be triggered. Do you have the patience to monitor quotes and charts for days and not take a trade? Welcome to the world of Futures Trading! Do what it takes to make money, not what it takes to be able to tell cool stories of a trade or stroke your ego. And don't try to get rich overnight with trading. If you can consistently make a 50 - 100% return annually, you should have more than enough retirement money.