Borrow Sense: Trade smart!!
The bane of asset traders who wallowed in massive losses during the 2020/2021 pandemic year is worth taking into consideration as you plot your trading transaction strategy for the year. From Cryptocurrency and Equities to Agro-Commodities and Metals, the technique is the same — Buy Low & Sell High. Therefore, several boxes need to be ticked to ensure commodity trading doesn’t end at the Gallows.
Here are some of the boxes you should tick, specifically for Agro-Commodities trading in;
- How steady are the influencers that impact agricultural output such as rainfall and other environmental factors during the current farming season as this would definitely affect farm output and therefore impact positively or negatively on the commodity supply? This is very key because only about 3% of Nigerian farms are irrigated thus output is highly susceptible to vagaries of nature.
- How easy is it to access the harvested commodities since more than 89% of harvested farm output in Nigeria comes from small-scale farms which are deep in the hinterland with poor access roads and increasing insecurity?
- What’s the best method to store these commodities when you get them because when crops are freshly harvested their moisture content is higher than is required by Manufacturers and if stored as such, this could lead to high spoilage rates? You have to think of drying man…very key o.
- What are the trading inhibitors or advantages that could arise from Government Policies. For instance, an Agro-commodity trader already knew that the border closure policy was in force in 2020 and the initial reaction was an increase in Commodity prices. It, therefore, showed that 2020 was going to probably be worse due to added factors such as Flooding, Drought and Insecurity. So, what is your opinion for 2021? Access the news and read; Research pays dividends, trust me.
Addressing the above is vital to trading smartly in the Nigerian and African Commodity space.
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The Bahranda Team has access to; experienced and technically proficient members and partners to help monitor these factors and forecast how trades could turn out.
Yeah, we are not “Winches & Wizards” but we have been correct almost 95% of the time; so, I guess that counts for something in your corner if you decide to become a Dealer in Agro-Commodities.’
Join the Bahranda trading Community by going to Bahranda as I keep updating you on your development journey into a smart Agro-Commodity trader.
Clever from Bahranda
