In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets, oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too much,...
The better you know your identity , the better you understand what to do and what not to do. It’s essential to excel in what you must do, but avoiding what you shouldn’t do is half the battle for success. If you can’t accomplish what you need to do, start by training yourself not to engage in what you shouldn’t. If you can’t make the distinction or find yourself confused, that indicates you don’t truly understand your identity. Solving all problems begins with understanding one’s identity, whether it’s personal or business-related. - Joseph’s “just my thoughts”