5 Common Mistakes Beginner Commodity Traders Make & How to Avoid Them

Commodity markets can hedge inflation and diversify portfolios, but pitfalls await beginners. Avoid these frequent errors to trade gold, crude oil, and agri-commodities profitably.

Mistake 1: Ignoring Global Supply Shocks

Fix: Track key reports (EIA, USDA) and integrate macros into trade plans.

Mistake 2: Misjudging Contract Expiry & Rollover Costs

Fix: Maintain a rollover calendar and evaluate carry costs before every trade.

Mistake 3: Over-Leverage in High-Volatility Sessions

Fix: Scale positions according to Average True Range; apply strict stop-loss.

Mistake 4: Trading Without Seasonal Data

Fix: Use historical seasonality charts for agri-commodities and metals.

Mistake 5: Neglecting Margin Calls

Fix: Keep a 30 % buffer in margin accounts to survive price spikes.

Our Commodities Trading Program teaches risk-smart strategies and seasonality models—perfect for traders who want consistent results in India’s booming commodity segment.