What does a commodities trader do, and is this a good career choice?

I’m considering a future in finance and came across the role of a commodities trader. Can someone explain what a commodities trader really does and what kind of education or skills I’d need to pursue this as a career option?

A commodities trader buys and sells commodities on different markets. These commodities can be agricultural products like wheat or corn, energy resources like oil and gas, or metals like gold and silver. They can also deal with "soft" commodities like coffee, cotton, or sugar. The primary aim of a commodities trader is to make profits from price fluctuations.

As a commodity trader, you'd need to analyze market trends and economic data to make predictions and decisions on buying or selling commodities. These decisions are often influenced by supply and demand, geopolitical events, weather patterns, and market news.

In terms of education, often a bachelor's degree in finance, business, economics, or a related field is the minimum requirement. Some employers prefer candidates with a master's degree in business administration (MBA) or a related field. It's also crucial to have a strong understanding of global markets and trends. Skills such as numerical abilities, analytical thinking, and the ability to handle high-pressure situations are pivotal to be successful.

Internships or entry-level positions in finance or trade companies can be a good starting point to acquire necessary skills and network within the industry.

As for if it's a good career choice, it depends on your interests and abilities. Commodity trading can be lucrative but it's also risky and highly competitive. The role demands long hours, a good grasp of global economics, and an ability to handle stress well. On the other hand, it can be exciting and rewarding, with opportunities to work in dynamic, fast-paced environments.

It's also important to consider that many financial roles, including commodities trading, are undergoing significant change due to advancements in technology, such as artificial intelligence and machine learning. Future traders will likely need to have a strong understanding of these technologies.

Finally, many financial careers, commodities trading included, can have high earning potential, but they also often require a lot of work and can be highly stressful. So, while the potential rewards are high, you'll need to consider if the lifestyle that comes with such a career suits your personal preferences and long-term goals.