Insights from the Frontlines: A Seasoned Intermediary Debunks the Overnight Success Myth (1)
Welcome to a series of insightful experience sharing sessions from Ian, an accomplished commodity broker who later transitioned into a seasoned trader. Over the years, Ian has navigated the intricate and often unpredictable world of commodities, gaining a wealth of knowledge and on-the-ground experience. Through these narratives, Ian delves deep into the nuances of the trade, debunking myths and highlighting the core principles that have anchored his success. Whether you're an aspiring broker, an emerging trader, or someone interested in the world of commodities, Ian's tales from the trenches offer invaluable lessons and a unique perspective on the industry. Join us as we journey through the highs and lows, the challenges and triumphs, and the lessons learned along the way.
Hello everyone, I'm Ian. Today, I want to discuss something many friends have been asking me about: getting rich overnight, or how to make that first significant amount of money. Firstly, I believe that becoming wealthy overnight is unrealistic. It's all about luck, and let's be honest, not many of us have that kind of luck, right? When doing business, you either need a reliable source of goods or dependable buyers. This often depends on your connections. Secondly, you must possess professional knowledge in your field. You should be knowledgeable and understand the intricacies of your business.
You also need the skill to differentiate between what's trustworthy and what's not, whether it's through the manner of speaking of a supplier or the qualifications of a buyer. It's essential to judge their reliability because not all opportunities come knocking every day. Maybe a supplier gives you one or two chances, and if you mess it up, they won't trust you again, right?
To give an example, consider the copper business. The profit margin is approximately $43 to $71 USD per ton, which is significant. Typically, you start with a small order, say one truckload. In my case, one truckload equals 30 tons. If each ton is priced at around $10,000 USD and we adjust the price down by approximately $71 to $71.5 USD, the average price per ton remains significant. Do the math, and you'll find that the value of 30 tons on one truck is substantial. Many newcomers approach me, claiming they want to handle 1000 tons or 500 tons daily. Do they even realize how much money that equates to? Given my experience, I'm usually skeptical.
When I first engage with them, I suggest starting with one truckload. Once we establish a trusting relationship, we can then proceed further. I believe this is the correct approach to any legitimate business. Take sugar trading, for instance. I supply many domestic sugar factories in Europe. In reality, the volume isn't that high, only about 10 to 20 tons monthly. And there's not much money involved. Most beverage shops requiring large quantities of sugar would go directly to the production areas for bulk purchases.
Why would they go through an intermediary like you? Think about it. Do you believe you are the only broker they can find? Isn't it possible for genuine buyers to find suppliers directly? So, when conducting business, the first thing is to keep a level-headed attitude. Extreme profits are mostly a myth. You need to be calm, knowledgeable, and skilled in distinguishing genuine opportunities. That's the key. If you're interested or have any questions, feel free to leave me a message.