Network Marketing – My Search For the Perfect Product to Market

Jun 22 2023 Published by admin under Uncategorized

Over the last six to seven years I had begun to pick up that there were people out there making a living off the internet. This interested me with my IT background. Now in South Africa there weren’t too many people around that knew anything about this – a lot of our telephone exchanges didn’t even support DSL! So any web surfing had to be done with a 56K modem which seldom had a data transfer rate faster than 33K, very time consuming and very frustrating.

There was however, an entrepreneur by the name of Peter Carruthers, who also had an IT background. When I first met him he was holding seminars called “How to Crashproof Your Business!” which taught one how to protect yourself from the banks and creditors should your business fail! Peter knew a lot about this, having been down that road, and as they say, “got the T-shirt”. I also subscribed to his newsletter, it was in this newsletter that he talked about Corey Rudl who was probably one of the first internet marketing guru’s, and very successful at it to. Peter had applied what Corey taught to his own business and raved about how it had changed it for the better. I also bought Corey’s guide to Internet Marketing, at first it just sat in it’s box while I attempted other more practical things (or so I thought) to generate an income. I mean whenever you talked about making a living off the internet people looked at you as though you were living in cloud cuckoo land!

The important thing about doing business on the internet is that it is GLOBAL!

What Corey taught was that to make a living off the internet one had to find out what people were interested in and what they were searching for on the internet and cater to that market. One quickly discovered that people are interested in the following; golf, sex, weightloss, weightloss, weightloss, motivation, dating, dog behaviour problems, learn to play guitar, travel, make money online and making money from home! There are other subjects as well, but these seem to be the most popular.

And so I continued trying to make a living doing more practicle things whilst all the while wondering what I could focus on doing on the internet. Then one day I was handed a flyer at a intersection which said “if I wanted to start my own home based business to call this number”, this was one of those light-bulb moments for me. One of the topics that people were interested in on the internet was how to make money from home, maybe I could combine this with the internet – and so I called the number. And that was my introduction to network marketing aka multi-level marketing (MLM) aka referral marketing and recently I came across yet another term, social-level marketing. I have no doubt that there are many more terms referring to this type of marketing.

What is Network Marketing?……

Lets start with a definition. The DSA’s (Direct Selling Association) definition is, I quote, “Companies that manufacture and distribute goods or services through Direct Sellers also referred to as distributors, consultants, sales agents, independent contractors and by other various names, directly to consumers in a face to face manner away from a fixed retail location” end quote. AMWAY Copyright© 2009 introduced the concept some 60 plus years ago.

The goods distributed vary from household detergents through to nutrient supplements (very popular at the moment – everyone is into the “wellness industry”). Services cover legal aid/advice, also very popular is insurance; covering anything from funeral policies to cash back hospital plans.

My goal was to do this via the internet, and this meant I had to find a product that was global by nature – you can sell legal aid or a funeral policy that is dictated by the laws of one country in another, you can sell household detergents, vitamin supplements etc. in different countries but you now have a transport component (ie you have to get the product there) so my search began for the perfect product.

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What’s All This About Affiliate Marketing?

Jun 22 2023 Published by admin under Uncategorized

“Cooperative” marketing is a broad term just indicating some sort of cooperative venture between two or more businesses. Whereas host-parasite marketing typically involves some sort of recommendation or formal connection between the two companies participating, affiliate marketing works a little differently.

Businesses sell other business’s products all the time in the brick-and-mortar world of business. Grocery stores market competing products, consignment markets sell products for individuals, auto repair businesses often broker auto sales. These are all variations on licensing other businesses to sell products for each other.

Affiliate marketing is one of the internet’s versions of a license to sell someone else’s product. What happens is that an independent business person (affiliate) markets products for a supplier. On a concrete level, the affiliate places advertisements directing the consumer to the supplier’s site (landing page). This allows the supplier to find multiple sales outlets and approaches at a fixed, risk-free cost. It is fixed because the “commission” is determined as a percentage of the price of the product, and it is “risk-free” because the commission is not paid unless a sale is made. So from the point of view of the supplier there can be substantial benefits. This can be offset somewhat by the lack of control of the marketing process, since it reduces the business’s ability to manage consumer expectations.

From the affiliate’s point of view the arrangement can also be advantageous. It allows an independent business to market and sell products without having to create or produce the product.

Sometimes affiliate programs get a bad “rap.” In my view an affiliate program is simply an alternate distribution method. Every product has marketing costs-the affiliate program simply calls the costs a “commission” which the producer pays to the affiliate. But nothing about the process should suggest that a consumer be any less careful in making his or her purchases. Likewise, an affiliate that wants to stick around must be aware that selling a product is an implied recommendation that is not to be made lightly.

Ken Gibert is a professional writer and business marketing consultant and operates Golden Sun Consulting. Specializes in writing–articles, copywriting, ghostwriting…any kind of writing–and marketing consulting.

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Value Driven Marketing For Magnetically Attracting Elite Leaders Into Your Home Based Franchise

Jun 22 2023 Published by admin under Uncategorized

Value Driven Marketing – The Only Way to Attract Leaders into Your Home Based Franchise

There’s been an ongoing battle online from those trying to figure out exactly HOW TO market their home based franchise.

Constant spamming, in-your-face marketing, and unwanted solicitation has led industry giants to make drastic changes to their terms of operation, only to give those that truly understand value driven marketing a harder time to give their value to those seeking online.

As with any marketing campaign, we MUST understand the need of our target audience and provide them ONLY with value and not force them into investing into something without having full understanding.

Being a home based franchise entrepreneur has opened my eyes to the REAL wants of individuals. The facts that drive someone to purchase or acquire what YOU are promoting WITHOUT you having to force it upon them is what true Value Driven Marketing will provide for anyone.

Now let’s go through some simple techniques YOU can use to begin implementing value driven marketing into your portfolio.

What Will Define Your Value Driven Marketing

There are many ways for a business owner to apply value driven marketing to their marketing efforts, but only a few that actually give the results you will need to become successful.

Freely, I’d like to give you a specific strategy to use RIGHT NOW to begin implementing a marketing campaign that will allow you to become a valuable resource to your specific target audience within your home based franchise. Begin with:

1. Any content you create MUST have exceptional value – As you are choosing your steps towards creating unique content to attract your target audience, remember that ALL of your efforts should have exceptional value. The more value you offer FREELY, the more return on investment you will receive towards driving up your profit margin.

2. To increase your income, you MUST increase your personal value to the world – Being seen as an authority online is the ONLY way of achieving success in ANY business. An increase in income from your online marketing efforts is a direct result of your value to the business world.

How to Begin Applying Value Driven Marketing

There are four basic steps to increase your personal value BEFORE you begin to apply value driven marketing. These four basic steps are:

· Learn (scholastic) – Begin to increase your knowledge and begin to increase your value. It is well know that those that ARE successful have an enormous knowledge database (fancy word for library) by which they have acquired the skills necessary to be considered for leadership.

· Apply (experimental) – Begin to apply the knowledge you are acquiring and experiment with what specific skill has given you the greatest results. Then begin to master this specific skill in order to become a true asset in value driven marketing.

· Teach – Immediately apply what you have acquired by GIVING AWAY this knowledge freely to those seeking it. Be considerate to those looking for answers regarding your specific product or service and give as much information as possible. This will prove to your target audience your level of commitment to them and also their level of satisfaction.

· Rinse and Repeat – There’s really no explanation for this step. It’s all about repeating this very process over and over until you are seen by no less than an elite leader in your industry.

The information I just shared with you came directly from one of my business partners and top earning industry leaders who openly shared this information with not just me but several others in our recent home based franchise Master Marketing events.

To receive the highest level of value marketing training and to further increase your specific value to the online community, be sure to register for my e-mail updates regarding an opportunity to get not only my but also my personal coach’s training in becoming a 3% leader in the network marketing and direct sales industry.

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Builders – Top Tips to Boost Your Profits Using Direct Mail Marketing

Jun 06 2023 Published by admin under Uncategorized

With a lot of companies going online Direct Mail Marketing is becoming less popular but it can be very profitable if you get it right.

We have ads coming at us from all sides, offline, online, even in public toilets, direct mail is still very effective because you getting right to your prospective customer in the comfort of their own surroundings.

Here a few top tips to getting direct mail right for you:

o Testing is essential, test your mailing on a small scale, then if it is profitable, do more of it.

o Direct mail works really well with existing customers.

o If you are sending a brochure you must always send an accompanying letter.

o A handwritten address on the envelope looks more friendly and personal, test it.

o If your mail out was responsive, mail to the same list a couple of weeks afterwards.

o Follow up your mailing with a phone call 3 or 4 days after sending the mail, if you talk to someone interested that did not receive the mailing check the address send it again and follow up with a call 3 or 4 days after that.

o Do you put your company name at the top of your mailings like everybody else? Try putting a real bold and eye-catching headline at the top of the mailing to grab their attention.

o Always have a call to action at the bottom of your mailing, tell them to call you today.

o Offer something free; this will transform your response rate.

Testing all of the above it is crucial, most UK builders send out leaflets and simply hope for the best, if you test your mailings and measure the results you will soon become an expert at direct mail which will help you make your business a real success.

UK Builders – Do you want to discover powerful marketing strategies that will help you to grow your profits?

Download this: Marketing Guide for UK Builders

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Using the Best Specialty Mailing Lists for Automotive Industry Dealers Marketing Efforts

Jun 05 2023 Published by admin under Uncategorized

There are several specialty mailing lists available for the automotive industry to increase sales. Automotive dealer marketing efforts will continue to be successful if the correct lists are selected. Direct marketing will continue to out perform any other form of advertising including newspaper, radio and even social media. Selecting the correct list will give automotive retailers the advantage by permitting them to target specific audiences that would be interested in your specific vehicle.

These are the Best Specialty List Options for Automotive Retailers:

Exact Credit Database – this file allows auto dealers to select individuals with an exact credit score, which aids in sending out special offers dependent on certain credit levels. You can also select based on an individuals auto loan or lease is expiring. This allows dealers to time their advertisement perfectly just as their loan or lease is up.

Automobile Database – this list is extensive in the type of automobile each household owns. Dealers have the ability to select by exact year, make and model of the vehicle within the household. Dealers can target households that would be interested in their vehicle offer by targeting people who own competitive make and models.

Saturation Mailing List – dealers often want to target everyone in the area within a specific distance of their dealership. This file will ensure they are getting their mail piece into every household within a specific distance of their location. They also have the option of selecting an average income in each neighborhood.

Newly Married File – marketing to newly married couples is a great way increase automotive sales. Newlyweds are known to spend more money when recently married and combining their income for more purchasing power.

Business Fleet Database – dealers can greatly capitalize on targeting business owners that require a fleet of vehicles in their operation. Landing just one business who has a fleet of 20 or more vehicles can become a large revenue maker.

Bankruptcy File – this allows dealers to select people who have just been released from their bankruptcy and are ready to start rebuilding their credit.

Using these best mailing list options and focusing your marketing message correctly will help increase your sales and customer base. Anytime you are planning to buy mailing lists, be sure you have your marketing strategy completely planned out. These are only a few of the automotive choices available. You always want to be as specific as possible when creating a targeted list. It is essential to put the time and thought into creating the best mailing list and even spending a little more on a more accurate database.

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How to Use Direct Mail to Increase Sales

Jun 04 2023 Published by admin under Uncategorized

Direct mail has been used for many years to increase sales. However, with the advent of the Internet, fewer companies are interested in using direct mail. They feel that it is outdated and that customers will not respond to it. Despite these concerns, there is evidence that a company can use direct mail to increase sales. The ways that companies use direct mail to increase sales are many and various. These companies often find that they are able to market in ways that use direct mail but are still very unique.

For example, some companies that use direct mail to increase sales send out small packages instead of just letters or flyers. In these packages, they can send small gifts that relate to what they can offer to a business. A company that has checkout services for businesses might send out tiny shopping carts. A company that caters to pet owners might provide their customers or potential customers with tiny stuffed cats or dogs. The list of ways that a company could use direct mail to increase sales is almost endless.

By offering more than a simple flyer, a company can use direct mail to increase sales without seeming as though they were marketing to people simply to get them to buy its products or services. The key to using direct mail to increase sales is to show the customer that the company wants to create a business relationship, as opposed to only trying to get money. Naturally, the main goal of the company is to make money from customers that buy its products and services, but developing good relationships through finding ways to use direct mail to increase sales can help bring in more money and build a better customer base in the long run. Being innovative and ensuring that all potential customers are marketed to as skillfully as possible is the best way to use direct mail to increase sales, no matter what company or product is being marketed.

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E-Mail Marketing As Opposed to Direct Mail Marketing

Jun 03 2023 Published by admin under Uncategorized

The key to getting the appropriate amount of traffic to your web store or business is to attempt to figure which form of marketing will be the most effective. Two of the more competitive marketing techniques are e-mail marketing and direct mail marketing. To make a good decision it is best to have an understanding of what each technique entails.

E-mail marketing

E-mail has grown to be a major source of communication and is widely used around the world. With this being said don’t you think that this would equally be a great source for advertising? The only problem that you really run into with this is knowing whether or not the people receiving your marketing e-mails are actually reading them. A great way to get around this is by providing an opt in area within your business’s website to receive your e-mails and newsletters so that you know that the potential consumers that you are sending the e-mails to are in fact taking the time to appreciate your work and, in turn, looking into your business.

Direct mail marketing

Obviously this can be an equally effective technique. Direct mail marketing is mainly going to consist of post card mailings, flyers, brochures, and basically anything that you would create and physically, not electronically, send to your potential customers. What are the benefits of this form of marketing? With the many forms of direct mail marketing you run a greater chance that your advertisements are either hanging on someone’s fridge or on someone’s desk for a later reference point. If it’s in more of a physical, “in your face,” type of advertisement people will be more apt to leave it in places that they know they will come back to at a later date.

Regardless of which method you use there are definitely benefits to both that will be equally rewarding. You want to make sure that you are creating and advertisement that will not only stick in the mind of your potential consumer but one that will also reach that consumer both quickly and efficiently. If it is truly a matter of picking one method over the other you need to make sure that the price ranges are within your budget and that it’s a good fit for you and your business.

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3 Keys to a Successful Direct Marketing Business

Jun 02 2023 Published by admin under Uncategorized

Once upon a time companies could advertise on every form of media available, to get their product out there. But now there are way too many different forms and channels to advertise on, making it impossible to afford. Meaning you need to cut costs by only placing your sales pitch right in front of the people most likely to buy.

For this reason, direct marketing is now exploding.

Direct marketing targets specific markets or consumer groups, making for a much higher and more effective response rate than other advertising medians.

If you are undertaking a direct marketing business or project, you need to do more than just putting your message in front of your target market. You need to consider several factors to best increase the response rate. Firstly direct marketing costs money, so you have to consider the timing. If you can’t afford to have your message sit in front of your potential customers 24/7 you need to consider when is the best time to target your market.

For example if you are targeting construction workers, you would not be to successful if you put your message on day time television.

So the first thing you need to do, is identify your target market. Preferably a niche group of individuals with a common problem. For example, house holders who want to improve their garden. This is a pretty broad niche but the problem is specific.

You now need to test if narrowing the market down more will be more cost effective. For example you might find the majority of this niche are women between the ages of 40 & 60 who live in the outer suburbs, not in city’s. The more you narrow down your niche the higher your response rate, or click-through in ad-words campaigns. However you will also miss out on some sales due to less people seeing your message. This is why you must test all campaigns to find your highest profit point.

Once you have your niche and problem, you must then identify a good time to contact them, and also what would be the best median to get your message across. For example if your targeting the younger generation or college students you might find face book is the best option to use as a vehicle for your campaign.

Targeted marketing or Direct marketing has become a necessity in today’s business world. If your undertaking any business venture you should be using some kind of direct marketing, to drive traffic and sales.

You need to have plan laid out, and test your results.

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Rep V. Direct: How to Best Organize a Sales Team

May 27 2023 Published by admin under Uncategorized

Sales executives are constantly searching for the ideal structure of the sales team. Should the team be composed only of direct sales people? Should the team be composed only of manufacturers’ representatives? Experience shows that a hybrid sales organization, composed of a blend of direct and indirect sales employees (manufacturers’ representatives), combines optimal performance, cost effectiveness and flexibility.

If one observes several sales organizations over an extended period, she’s able to see that relatively often, sales executives make sweeping changes to those organizations, from all direct to all rep, and from all rep to all direct. Invariably, the observer is able to note that sales management ultimately reverses many of those sweeping changes. Sometimes sales executives benefit from observing changes made by others. Unfortunately, too many sales executives develop the understanding of the benefits of a hybrid organization by making one or more poor decisions and then repairing the organization after problems surface. The most durable of sales organizations are those that use a hybrid technique, employing a mix of both direct sales staff and manufacturers’ representatives. Sales teams composed entirely of all direct people or entirely of manufacturers’ representatives are generally not ideal.

Why “Direct Only” Teams Are Not Ideal

Many CEOs and executive teams believe that the best way to build relationships with customers is with a sales team composed only of direct employees. In this example, sales staff cannot be distracted with unrelated business and other product lines. No one can blame the inexperienced CEO and executive team for thinking this way. A salesperson is able to devote 100 percent of this time to the company. A direct sales team suffers from far fewer distractions than a rep sales team. However, experienced CEOs and executive teams understand that they must thoroughly look at a direct sales team before converting to it. Direct sales teams are quite expensive to train and support. The company must support offices in all major markets. Those offices bring along with them assorted costs: rent, administrative support, office equipment, utilities, etc. A competent manager who can work well and represent the company without direct supervision must manage the office. The company must train and occasionally upgrade each office manager.

When sales are growing, the office manager must hire and train new sales staff. The company must train the manager in hiring and training techniques. The company must also train the office manager in firing techniques, in hopes of avoiding legal problems.

As sales grow, the office must expand to meet growing demands upon the sales office. Cost of sales rises as sales grow. Sales, however, do not grow forever. Ultimately, sales flatten and roll over. Sales usually roll over earlier and more abruptly than hiring plans. Sales may dip at anytime during the year, but hiring plans are usually set at the beginning of each calendar or fiscal year. As a result, hiring is sometimes still underway when industry and office sales are falling. Such dynamics create an environment whereby cost of sales, (as measured by the total cost of running the sales office, divided by the total revenue that the office generates, expressed as a share of sales) rises rapidly.

When a sales office has healthy sales, the company can manage its cost of sales and support them at a predetermined level. If sales grow for a long period, the company can manage the office to cut cost of sales. The sales office can benefit from economies of scale. A sales office supporting 20 salesmen doesn’t need more copiers, fax machines and conference rooms than an office supporting only 10 salesmen. Unfortunately, sales ultimately roll over. It is difficult to cut costs immediately. The office manager must usually see several months or quarters of declining sales before realizing that he must cut costs, including headcount. During this time, cost of sales rises, sometimes well above tolerated levels. The sales office manager and the company cannot cut costs quickly. Which is a chief reason that totally direct sales teams are undesirable.

Why “Rep Only” Teams Don’t Yield Peak Performance

Rep only sales organizations afford a number of benefits to the sales executive. The sales teams are already in place. Hiring and firing of salesmen is not the direct responsibility of the sales executive or his regional sales managers. Manufacturers’ representatives generally hire and fire as sales move up and down. The cost of running a rep only sales organization rise and fall directly with the level of sales. A significant benefit of the rep only sales organization is that cost drops immediately when sales drop. It’s possible to accurately forecast cost of sales as a share of total revenue. Cost can never get out of control by hiring too many salesmen, buying too many computers, or leasing too large an office; not infrequent problems for direct sales organizations.

Manufacturers’ representatives are not always the panacea for companies looking to hire or expand a sales organization. Large customers often demand direct sales staff; not indirect staff from a manufacturers’ representative. Large customers view their largest suppliers as strategic partners, and like the ability to communicate directly with those suppliers. Communications is sometimes slower and less clear when a customer must communicate with a manufacturers’ representative, who in turn communicates with the supplier. Customers may set the style with which they deal with suppliers as part of their purchasing strategy. For example, they may decide to deal with no more than two or three suppliers on any commodity and to deal with those suppliers directly. This disallows conducting business through manufacturers’ representatives. A supplier must recognize and honor such a strategy, or be ready to suffer undesirable consequences. A supplier must never turn a tin ear to a request from a customer demanding direct sales representation.

Large suppliers view their largest customers as strategic partners, and like the ability to communicate directly with those customers. They view the delay when communicating through a manufacturers’ representative as an unnecessary burden. When large suppliers invest management time with strategic customers, they do not want to dilute that investment by sharing management time with manufacturers’ representatives. The incapacity to offer direct coverage to strategic customers is the primary reason that a sales team composed only of manufacturers’ representatives is unattractive.

First and Foremost: Do No Harm

Recognizing that something is wrong, many sales executives make bold, sweeping structural changes to their sales teams. Fire all reps and hire a direct sales team. Fire all direct salesmen and hire a network of manufacturers’ representatives. Either approach will certainly repair some problems. More than likely, however, extreme changes are very prone to creating new problems of equal or greater scale.

Why do so many companies replace one poor-performing sales organization with another that destined to yield performance that is no better than the original? The two most common reasons are inexperience and weakness of the sales executive compared to the rest of the management team. Perhaps the inexperienced sales executive has risen through a single company with an all-direct or all-rep sales force. Now, managing the global sales organization, he opts for sweeping change from all-direct to all-rep, or from all-rep to all-direct sales without benefit of understanding thoroughly the benefits and problems with either a pure-rep or pure-direct organization. Alternatively, the inexperienced sales executive may have developed his management skill at a company employing an all-direct sales organization. He may not feel comfortable managing if hired into an all-rep company. No one can fault a sales manager if he sees massive problems and concludes that he must make sweeping change to an all-direct sales organization. Only inexperience allows him to make a major, highly disruptive change.

Another reason companies make dramatic changes in the structure of a sales organization is that the sales executive is weak. If cost-of-sales, expressed as a share revenue is too high, the CEO, the rest of the executive team, or both can apply pressure on the sales executive to affect change and cut cost. If the sales executive lacks the strength to defend his team or the structure of the sales organization, he merely becomes the messenger, not the manager.

The message to the sales executive feeling pressure to make sweeping change in a sales organization is to adhere to the Hippocratic Oath: First, do no harm. Any sweeping change imposed upon the structure of a sales team will initially be disruptive. Make sure to justify the disruption and be very sure that the change, once implemented, is most likely irreversible. Sweeping change brings disruption, higher cost of sales and lower productivity. All of this might be worthwhile. However, if a sales manager imposes sweeping change and then reverses course within a year or two, disruption from the reversal is much greater and more costly. A reversal of an organization change brings with it disruption, higher cost of sales and lower productivity just like the original change. However, an organizational reversal can erode the sales team’s enthusiasm. A company can handle disruption, higher cost of sales and lower productivity if repaired relatively quickly. Repair of an unmotivated sales team takes much more time.

“Hybrid Sales Teams” Work Best

A supplier always looks to optimize its sales organization. If a company continuously focuses on cost of the sales organization, use of manufacturers’ representatives is mandatory. The benefits of manufacturers’ representatives are too great to ignore. However, manufacturers’ representatives may not satisfy the requirements for some customers. Strategic customers demand direct interface, excluding the use of reps. The best alternative then, is to merge some of the best features of both a rep and a direct sales organization. Implement a direct sales team to cover the sales to all strategic customers, while simultaneously bringing about a sales team of manufacturers’ representatives to cover all other customers.

A hybrid sales team benefits from the cost effectiveness of manufacturers’ representatives. The same team can deal directly with strategic customers. The sales executive may take advantage of the non-disruptive flexibility when adding or deleting customers on strategic customer list. A secondary benefit of a hybrid sales organization is bench strength. Well-seasoned, top-performing direct sales personnel represent a talent pool from which from which to draw regional sales managers.

Conclusion

Experience shows that a hybrid sales organization, composed of a blend of direct and manufacturers’ representatives combines optimal performance, cost effectiveness and flexibility. The most durable sales organization is one that uses a hybrid technique. Sales teams composed entirely of all direct staff or entirely of manufacturers’ representatives too often underperform.

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Commodity Trading Tips, Golden Trading Tips and Guidelines of Do’s and Don’ts in Commodity Markets

May 26 2023 Published by admin under Uncategorized

Historically, commodity trading has delivered the biggest fortunes worldwide. It originated centuries ago, even before the stock markets came into existence, albeit traded then in a different manner, than as seen today on electronic exchanges. I have often quoted that ” If trading in the speculative markets, then Stocks & Equities is for boys but Commodities & Forex is for men” (No gender bias intended). Wealth creation is not a matter of chance. It is a process that needs sharp analysis & a lot of work time. Plan your play and then play your plan. Happy investing!

The similarity in Stocks & Commodities begins & ends at the point that they are both speculative trade markets, but there are a lot many differences in both these markets. Unlike the stock markets where even a highly valued stock could eventually see all it’s commercial-value being eroded due to several reasons, the values of commodities may see corrections on a large supply but eventually will only increase again with time, as the inherent imbalance in the demand and supply ratio would always favor demand more than supply due to many influencing factors like growing populations, rising economies and better lifestyles to name a few. All adverse scenarios like geo-political tensions, wars, climatic imbalances, catastrophes and other man-made disasters, etc. which pull the stock markets down generally push the commodities up (especially Agro-Commodities & safe haven instruments like Gold), basically due to the differentiating factor that these commodities generally are also regular necessities to normal life and not simply investment instruments. Most Commodities are traded globally & the price rigging in these is next to impossible unlike, as seen in a lot of equity instruments where manipulation is a lot easier & occurrences of traders getting duped are rampant.

Massive wealth creation is possible through Commodity Trading & Investments if done the right way & with a lot of strict discipline. But if done the wrong way, which is generally the most followed path, there will be enormous losses also. You can start off equity trading or investment with smaller sums of money, but would require deeper pockets to be able to do some modest trading in the Commodity Exchanges & also to sustain the “Mark to Market” volatility in the Commodity Markets. The gains & losses in both also become proportionately big or small eventually. I would now like to highlight some basic Do’s & Don’ts for the most frequently seen habits & maybe unknowingly committed mistakes, which I have noticed in most traders & had to address to a number of times as a Market Analyst & a Commodity Market Trade Advisor.

1] Do not trade with hesitance, half heartedly or in over confidence. You may incur small but repeated losses if you are scared of the markets or heavier ones if you are overtly brave and foolhardy.

2] Be patient when your trade positions are moving in the right expected direction to extract maximum gains and ensure the gains by improvising the stop-loss level, time and again. Do not be pessimistic here or else you may book gains pre-maturely & may later repent on exiting early. This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at small reversals in panic, which in turn would erode earlier small gains & also build losses. It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong & that makes all the difference between Winners & Losers.

3] Do not be over optimistic when trades have hit the suggested stop-loss levels and make sure you exit there. You may miss better and multiple opportunities on being stuck in deals gone wrong leading to higher and higher losses each day.

4] Do not discuss your open positions with one and all. This will lead you nowhere and confuse you more, as all would air their own views on the same (whether knowledgeable or not) and many a times, would make your trade decisions seem as foolishly and hastily taken. If only you would have consulted them earlier…

5] Do not develop a tendency of being a Bull or a Bear in these markets. There is only one side to the markets and that is neither the Bull side nor the Bear side – But ONLY the Right Side at the Right Time. Trend is King, so follow it at all times.

6] Realize that you are in a bad situation and exit fast when you need to pray for relief at each rise or fall in a trade which is leading you further in a deep pit towards heavier losses.

7] Follow ONLY one Analyst’s or Technical Advisor’s guideline at a time, as more guidelines will again create a lot of confusion. You can opt for or look out for an alternate guidance when the earlier guideline proves to be less productive or loss making, but not simultaneously.

8] Be honest to yourself as hoping or praying for something different, than the actual reality or situation is nothing less than fooling your own self.

9] There is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight, as assured by many to win a prospective client. YES, there are sizeable gains and high returns for a disciplined trader and may return exactly the opposite, if not worse, for the non-disciplined. Do not enter this trade market under any illusions of getting to be a Billionaire overnight. It will never happen. In fact all that you now possess may also be lost.

10] DO NOT BORROW or trade with funds that are not yours or pump in more funds by borrowing to hold on to loss making trades. Trade only with own funds that are spare-able and be prepared mentally in losing even that in totality, in the worst case.

11] Never trade or enter / exit positions in panic. Volatility is a non-separable component of this trade market and will be present most of the times.

12] Do not be a party to rumors or be guided or misled by these. Verify & double-check on the source for genuineness.

13] Stay away from the people who have a habit of saying “I had told you – See now?”. These are the very same people who would never put anything on paper or ever trade on their own views- with their own funds, as in reality they do not have any concrete views or knowledge. They are mere sponges on an ego trip, who keep soaking or gathering tidbits of information from anywhere available irrespective of their reliability, put all together and spread the newly formed news. If what they say goes wrong, they would disappear and would be seen nowhere or if found, might now have some stronger views and reasons for why the wrong happened as generally these kind of people are very good convincers & are blessed with the gift of gab. Listening to these characters and their views is very dangerous. As the wise always said: – “Half knowledge is always the most dangerous”, “Ignorance is Bliss” and “Blessed are the fully knowledgeable”.

14] DO NOT TRY to be the TREND SETTER or the first one to know where a particular trade will turn from. No one can possibly be, except by a sheer matter of chance, the best seller or the best buyer – so why try it? You might end up losing a lot of money and also becoming the laughing-stock for all. Follow the trend and make respectable gains, “Quietly”.

15] Do not enter the Commodity Markets with Stock Market trading ideas. Though both are speculative trade markets, there is a substantial difference in both and generally have opposite trading patterns and thumb rules, as elaborated earlier.

16] Providing past performance records is not a mandatory rule for Analysts or Advisors, and the same info (wherever posted) can be misleading, as the same can be manufactured by the end of day to dupe prospective clients. Do not try to look for something that can misguide you & lead you on the wrong path, ending up in losses – money-wise & also confidence-wise. Upon subscription by the trader, the same people showing fantastic results on their websites, but performing poorly in real-time, may later not be available even for a discussion or may later say that “Past performances are not an assurance of any future success”. So take a Trial for a fortnight or a month (not for a day or two), do some live paper trading & only trust the live performances. Judge the genuineness of the research quality and real-time trading support only on the basis of live experience and not by past performance records. Most of these records could be fakes. Better to pay for the Trial & come to the right conclusion, rather than loose a lot of capital by trading on faith generated by looking at & getting impressed by the past performances.

17] “Trading without a Stop-Loss & yet making gains is sheer Talent – Not trying such stunts is Intelligence”. The stop-loss practice is for your own benefit as this provision has utmost importance and is not provided on each trading ticket by the exchanges, just for the heck of it. If the trades turn & move in the opposite directions beyond entry levels, they might further move very fast in a volatile manner & the losses accrued, in the absence of a stop-loss, can be un-imaginable. There are several things happening across the globe constantly, which affect the price movement, direction & volumes in commodity trading, as basically they move in accordance with demand and supply situations & are also greatly affected by the Geo-political scenarios all over. It is not humanly possible to track each & every occurrence, watch out for economic data’s released all around the globe and understand the level of their impacts on the trade movement & direction of all commodities, though you may be constantly updated on most of the developments, most of the time. Many times the reaction or the impact of these developments is so quick & enormous, that large & rapid movements in rates are instantly triggered with high volatility, even before the news on these developments reach all over the world. In such a scenario, you may never know as to what level these trades could go to & the losses (though sustainable by a few) may be very large. These losses are not the only losses that you incur if caught in such a situation – you also miss out on the opportunity, the same commodity is offering, in the opposite direction and also by other trades as most of your attention and funds will now be concentrated and caught up on this particular trade gone wrong. Remember – Growing wealth is important, but safe guarding seed capital is even more important. It’s easier to resist & also absorb losses at the beginning than later.

18] Averaging in loss making positions is a practice which is most commonly seen & generally leads to more dangerous losses. This is also recommended by a number of advisors, but I certainly do not recommend it. In fact I strongly oppose it. Remember – YOU are incurring the loss & not your advisor.

19] Putting all your eggs in one or a couple of baskets could prove to be more dangerous for the day trader. Having a wider investment or a trading spectrum would be more effective. All entered trades may never go wrong simultaneously but a stray one or two could and what, if you have traded in only those? It may also happen that the 1 or 2 trades that you have entered into, have moved in the right direction, but have not achieved the expected high results or gains in comparison to the ones you have left out. So it is only advised and not stressed upon – that the trader should take positions in a wider range of trading / investment opportunities to achieve better results.

20] Do not be biased to a particular commodity. Look at all commodities (having healthy trading volumes) only as profit generating opportunities & not at the English name or Social status of the commodity.

21] Always remember -”You cannot use yesterday’s ideas for today’s business and expect to be in business tomorrow”. Be ready to accept and implement change immediately and constantly as “Change” is the only factor that’s constant in the world – everything else keeps changing and its meaning is all the more true in these highly volatile and ever-changing market scenarios.

Adherence to the above is sincerely recommended to trade and achieve gains in these ever volatile Speculative Trade Markets.

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