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For roughly half of a decade, Clayton Perlman has worked in New York City as Principal and Risk Analyst of a trading company. Before Clayton Perlman joined the new Trading team, he had previous experience with another trading company. Working in development and as a Futures Trading Clerk, Clayton Perlman had plenty of experience working on the floor of the New York Mercantile Exchange (NYMEX). Clayton Perlman possesses a thorough working knowledge of the entire exchange process and the various trading positions. For a year, Clayton Perlman worked on the trading floor of what many people are now fixated upon – crude oil. Crude oil is just one of the futures that analysts forecast the future prices of. "The prices of oil change daily on the floor. Many people are paying attention to oil now but few realize that oil prices affect many other markets too," says Clayton Perlman. Much of what determines the price of oil is forecasted by supply and demand. If there is an oversupply of a commodity, the commodity becomes devalued. Clayton Perlman worked in energy commodities but the world's core commodities are broken down into four categories: energy, metals, livestock and meat, and agriculture. Working in a trade company, investment strategies involve the buying and selling of these commodities. Similar to the New York Stock Exchange, the commodities exchange determines the price of these goods instead of stocks. Like stocks, commodities can gain and lose value. Clayton Perlman gained this knowledge firsthand working in crude oil futures, heating oil futures, and crude options pits. "People don't realize that with the rule of supply and demand, if something happens to effect the supply, it effects what the consumer pays,” says Clayton Perlman. “Drought drove up the price of corn in the same way a decrease in oil drive up the price of gasoline.” However the opposite can also happen. With an increase in natural gas production comes a decrease in the cost of natural gas. In addition to losses and gains, traders like Clayton Perlman had to examine commodities reserves, and as a clerk dealing with crude oil futures, the US oil reserves needed to be taken into account. "Even commodity trading involves a degree of risk. The risk comes into play from natural disasters, a change in demand by consumers, and even politics," says Clayton Perlman. That is why trading companies hire professionals like Clayton Perlman to work as risk analysts. Not only do changing prices of commodities affect consumers, they also affect investors. So risk analysts always research commodities and global trends to determine the risk of investment. For more information about commodities and commodity trading, Clayton Perlman invites you to examine sites such as: http://www.investopedia.com/articles/optioninvestor/09/commodity-trading.asp
http://www.infinitytrading.com/economic-purposes
http://www.wisegeek.com/what-is-commodity-trading.htm
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