The commodities markets are always in flux, and it’s important to keep up with new markets and new opportunities. Never judge a book by its cover. I remember in the stupidity of my youth being offered a natural gas seat to trade on the commodities exchange for free. For free! I turned it down.
You see, the badge was purple and my cotton badge was orange and if you own both, it makes your commodities trading badge half purple and half orange, so I said no. Seriously, I said no because I didn’t believe a natural gas contract would ever be successful. After all, the commodity was tightly regulated and it comes through a pipeline controlled by spigot.
Well, chalk this one up in my loser column; I know when I get to heaven and they are reviewing me for entry, this one will come up as one of the more foolish decisions of my youth. Today, natural gas is a highly liquid and sought-after seat; I won’t tell you how much the seats go for. You just never know what the next hot thing is going to be, but it may be the thing you least expect.
Always study the markets you want to enter – take an interest in them. One of the most important things in this business is to be interested in what you are trading. Otherwise, trading becomes a chore. I personally don’t trade Treasuries – why? Not because they’re not good markets but because they don’t really engage me. Others couldn’t care less to trade sugar; I, on the other hand, am passionate about it. That’s the key to trading commodities: Be passionate about the market you choose to follow, but never let emotions cloud your judgment.