If you are like me, it is possible that you like making money or earning from the work that you do. This is also true if you are in the business of commodity market trading as a trader or an investor. Getting into commodities, the common question is always; how much can I earn from commodity market trading?
As you embark on trading commodities for a living, you should be clear on the amount of money you can make. This will help you determine if this is a career or business you want to pursue.
Having an idea of the money you can generate from you activities in the commodity trading market is one way of de-risking your investment.
You should do enough research and gather as much data as possible on the money traders generate. It is possible to have an idea of this from looking at the salaries of the larger commodity trading brokers or oil trading companies.
This resource is aimed at helping you know or get an idea of how much you can earn from commodity market trading activities.
How much can I earn from commodity market trading?
It is possible for you to earn $50,000 per year from commodity market trading.
To make this money, you need to generate about 20% return on your investment on a $250,000 commodity account.
The best way to earn money from your commodity market trading is ensuring you have enough money saved to support your life for about twelve months.
This is because trading in commodities is risky and you cannot rely on it when you start to pay your monthly expenses or bills.
You can also earn less money if your investment is little. If you invest $10,000, you can earn $2,000 per year assuming you get a 20% return on your investment.
The other side of this coin is that you can also lose your investment and earn nothing from commodity market trading.
Commodity Market Trading
In order for you to participate in trading in commodities, you should understand what commodity market means.
In simple terms, a commodity trading market is a marketplace that deals with buying, selling and trading in raw or primary materials.
If you are a beginner, you should consider reading this guide that focuses on how you can start trading in a commodity market.
Related: 7 Ways to Start Trading Commodity Market as a Beginner
The trading of the raw materials or primary products are going to take place at a commodities exchange. It is important that you know the available commodities exchange for the commodity you are interested in today.
A commodities exchange is therefore the physical location where trading of commodities takes place.
It can also represent the legal platforms or entities formed in order to enforce the rules for the reading of standardized commodity contracts and related investment products.
As you try to figure out how you can earn from commodity market trading, it is very critical that you taken a keen interest in understanding how these exchanges work.
How much can I earn from commodity market trading?
The amount of money you can earn in salary as a commodity trader in the United States range from $32,680 to $1,131,376, with a median income of $202,318
How much can I earn in commodity market?
You can earn $100 as well as $1 million in the commodity market. The amount of money you earn depends on the investment you make, the type of commodity you are trading in and the market dynamics.
As an investor or trader, you objective for getting into the commodity market is to make a positive return on your investment.
Your focus should be on ensuring you earn money.
How do commodity markets make money?
I know you are interested in knowing or understanding how commodity markets make money.
As an investor or trader, you can make money by buying commodities for a certain price, and selling them at a higher price.
The people who buy a futures contract make money if the future market price of the commodity exceeds the market price of the commodity at the time of purchase.
Can you make money trading commodities?
If you are asking this because you want to start commodity trading, I would like to let you know that the simple answer is a yes.
You can be able to make money, and become rich from trading commodities.
To achieve this goal or objective, you should equip yourself with the knowledge and skills needed in commodity trading.
This will allow you to understand the factors that affect and drive the prices of various commodities in the market.
It is important for you to always remember that commodities are generally raw materials. These raw materials can be used to create various finished products.
Some of the seven top commodities that can make you money include;
- Crude oil.
- Natural Gas
- Aluminium
- Nickel
- Steel
- Iron ore
- Soya beans.
- Corn
- Gold
- Copper
Trading in any of these commodities provides you with a chance to earn or make some money.
How you can earn from commodity market trading
As an investor or trader interested in making some extra money, commodities market is important to you. However, do you know how much you can earn from commodity market trading?
The amount of money you will generate from your commodity trading activities is going to depend on a number of factors. These include money you invest and the type of commodity you are trading in.
Here are the top five ways in which you can earn from commodity market trading;
- Investing in futures contract.
- Trading in physical commodities.
- Using Exchange-Traded Funds.
- Buying or selling commodity-based stocks or shares.
- Investing in mutual funds.
Conclusion
In conclusion, commodity market trading is not easy or for the faint-hearted.
Making or earning money from commodity trading requires you to have a plan and strategies. This is because there also exists the risk of losing money for your trading activities.
You can earn money from commodity trading. This is going to be through investing in futures contract, stocks of commodity producers and using exchange-traded funds.
It is my hope that this article has proved resourceful. My goal is to you learn how to make money from commodity market trading.
