Introduction to Commodities Investing

Module 2: Speak the Language of Commodities Investing

Learning Objective:

• Understand important words and terms used in the commodities industry.

  • Bonus material: Important Definitions

Understanding the jargon of the commodities industry is important. By understanding the various words and terms, you will become a more informed investor. How? Well commodities investors have certain phrases for phenomena that occur in the market. And some of these phrases you will not hear anywhere else! By understanding the language, you will automatically acquire a better understanding of what can happen in the market. You will be able to identify trends that you otherwise may not have even known exist!

Legendary investor, Warren Buffett, has said that the first rule of investing is to never lose money. This is especially true with regard to your principal (your initial investment). This module is key if you wish to meet that standard. Jargon has been developed in order to efficiently communicate ideas and concepts within the industry. And the better you understand the industry, the better prepared you will be to take advantage of opportunities and avoid potential threats.

Take Action

Before advancing to Module 3, open the Module 2 bonus material, a list of important industry words and terms, and read through the entire list. Ensure you understand every item.

Research an additional 5 to 10 words or terms used in the commodities industry and learn their meanings.