Risk Management
The world should learn that with todays business world we need to protect ourselves from risk. Simple Risk Management is a major key to success.
In our industry, most people don’t have any risk management and conversly get killed with “cash’ prices when they tank. Yet, they load up and do it all again the next turn swinging large for the big homerun.
Big Win - Big Loss = small profit (or negative profit)
It is ok when you get the big homerun, but stupid to follow with exposing yourself to risk to allow in the big loss. Why not just protect yourselves?
Futures and Options allow people to price protect their business in the commodity industry, yet are rarely used. They are complicated, but worth the knowledge if applied wisely.
Medium Win + Small Win + Small Win = + profit (regardless of size)
PROFIT IS STILL PROFIT!
Why else would we be in business?
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