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 scariest people in the world are those who truly know themselves. It may sound easy, but few understand what they excel at and what they prefer. The same goes for occupations. Someone may seem to know their job well, yet they might not fully grasp what they’re doing. What potential exists—whether the job is suitable for the times, if you’ve chosen the wrong market, or who the right partner is for you? The fact that many rarely start by understanding themselves means they often spend time without gaining much insight, even as they struggle hard. - Joseph’s “just my thoughts”