In the latest episode of the Strong Source Commodity Podcast, hosts Martijn and Alexander sat down with Stephane Bernhard, Head of Commodity Trading at Export Trading Group (ETG). Stephane’s journey into the world of commodities is as fascinating as it is unconventional. Reflecting on his early career, Stephane shared, “I didn’t know anything about commodities trading. I didn’t know that commodities were traded, actually.” This candid admission sets the tone for a conversation rich with insights into the unique blend of fundamental and systematic trading that has defined his career.
The Role of Freight and Macro in Commodities
Stephane’s approach to trading is rooted in a deep understanding of both fundamental analysis and the broader macroeconomic environment. His early experiences on the freight desk at Louis Dreyfus shaped his trading philosophy. “Freight is probably the commodity most connected to the global economy,” Stephane noted, emphasizing how the health of the global economy directly impacts freight markets. This perspective has driven his focus on macroeconomic indicators, leading to a comprehensive trading strategy that blends technical analysis with an acute awareness of global economic trends.
Navigating a Complex Market
The conversation delved into the current state of commodity markets, where Stephane highlighted the challenges of navigating a deflationary environment. “What has made the last year very complex… is that the US government did something unique—reflate fiscally without being in a recession,” Stephane explained. This unexpected fiscal policy created a “muddle through” environment, making it difficult for traders to predict market movements. Despite these challenges, Stephane remains optimistic about the future, forecasting “golden years for traders in commodities” due to the numerous imbalances created by underinvestment and regulatory changes.
The Importance of Process in Trading
A recurring theme in the discussion was the importance of process over price in trading. Stephane stressed that successful trading is not about chasing trends but about adhering to a disciplined process. “A bad trade is a trade where you don’t respect the process,” he stated, emphasizing the need for traders to separate the outcome of a trade from the quality of the decision-making process.
Advice for Aspiring Traders
For those looking to break into the commodity trading industry, Stephane offered valuable advice: “Be driven and attracted to our space for the right reasons… It’s one of the jobs where you can learn the most about yourself and about others.” He highlighted the importance of patience, persistence, and a long-term commitment to learning and self-improvement.
Conclusion: A Wealth of Knowledge
Stephane Bernhard’s insights during this episode provide a deep dive into the world of commodity trading, offering listeners a wealth of knowledge on everything from the impact of macroeconomic trends to the importance of a disciplined trading process. For aspiring traders and seasoned professionals alike, this conversation is a reminder that the journey in commodities is as much about understanding the world as it is about understanding oneself.
Want to listen to the full episode? Head to your favorite podcast app here:
- For Spotify click here
- For Apple Podcasts click here
What is the Strong Source Podcast?
Our mission with the Strong Source podcast is to educate and inform, by creating a community where experts and guests from the entire commodity industry can share their unique perspectives. Martijn Bron, ex-cacao trader, and Alexander Sterk, ex-dairy trader and founder of Vesper, have a deep-passion for this industry, which inspired
