When the market turns against you.
Commodity trading can be a little bit like winning the lottery – easy come, easy go! If you don’t take care of your assets, your equity can diminish and you’ll nd your banker knocking on you door, asking for a “margin call”.
Case in point! Marketing plan in place – guaranteed pro t locked in – banker on board, when all of a sudden the market takes a drastic move against you. So drastic that the banker had a drawer full of signed notes, just to meet margin calls.
Bank examiners were beginning to take notice. There was tension where there was once tranquility, and what was once a perfect scenario was about to come to an end. The line of credit had come and gone. Like the houses of “The Three Little Pigs”, even the one made of bricks came tumbling down.
When you’re in the eye of the storm there is more devastation than just that of “price protection”. Every aspect of your life is negatively affected; management decisions, relationships, and most crushing of all is the inner soul of man!
So how could this have gone so wrong? It was simply bad advice from a source that had no vested interest or any other skin in the game.
The moral of the story is that you must do your homework before putting together a “marketing plan”. A bad plan is worse than no plan at all!
To be advised to put together a marketing plan before investing your rst dollar is sound advice, if and when it is built on the premise of knowledgeable research and understanding. There is simply too much at stake to lightly throw around the words MARKET PLANNING.
As important as your livelihood might be, it is secondary to the inner being of man! It is equitable to that of conquering the world while losing your soul. It is too high a price to pay for a commodity of in nite value, so easy come, easy go is far from being easy.