Excellent video Damien and most of those can also be applied to building a business relationship in any sort of business. Another tool I sometimes use is a NDA...Non Disclosure Agreements (or variations) are usually not worth the paper they're written on but asking someone to sign one is a good exercise...their response gives you a really good idea on how they're going to conduct themselves in business especially around being trustworthy. I had one guy from Jersey ask for the NDA in word, then they gutted the remedy clause, used three different entities for the company name, address and company number (they didn't expect me to check), then refused to sign it under the relevant legislation (which required two directors or the co.sec. and 1 director to sign)...I told them to fuck off, then they circled behind my back and screwed my deal up.
Great video, Damien - amazing video to touch on some of the real key risks pertaining to physical trading company. Thanks! Always welcome to more sharing from the perspective of the traders :)
It’s true I left for two years and came back to watch this video. I am glad this video was made,I don’t want to get lost by the investment or numbers 🙇♂️ great other tips mentioned too!
Selling below market price is such a common scam. When I crunch the numbers and send it to the counter party they usually don’t reply…that’s my answer, no reply.
May i ask, normally you buy from suppliers at market price and then sell at higher market prices. Normally is like that and it applies to metals and oil? Isn't more common to buy with a small disscount and then sell with a higher price close to market price, many thanks
Regarding proof of funds, I don’t mind asking potential buyers for a proof of funds. In general, I get pre-shipment financing anyways. Because the commodity I trade is pre-financed 99% of the time. Even where there’s spot available, it’s always sold. So, when pseudo-buyers reach out to me, I always ask for evidence of their financial capacity. It’s part of the criteria to buy from us. It doesn’t mean they need to have a stack of cash waiting for a deal. But, there should be something to show for. The market is flooded with LLCs incorporated last month, with 0 trading history.
You are making my case. This criteria makes no sense. Ppl can provide a fake proof of fund, you have no way to check it. If you want evidence of thier financial capacity asks for thier financials. 🤷♂️
Couldn't agree more about proof of funds and LOIs, have only heard from brokers who seem dodgy. One thing about sharing suppliers and customer details, OK as a general background but what if a potential new supplier asks who you would sell his cargo to? Maybe he wants to just check that you have a serious trade lined up and not just speculating, but there is the obvious potential for cutting you out later?
I agree with most on here however I do not agree with your LOI assessment. An LOI simply tells us what the buying wants to buy in detail along with their target price. In our industry, thats the only way we can understand exactly what they want, what quantity, grade of product and we 100% ask for a target price as that lets us determine as to whether they are market savvy or not. To us an LOI is crucial prior to issuing an FCO
Dont know which industry you are in. But… all the parameters of the deal, Quality, Target price, Payment terms, etc… could be exchange on a email 😅 Cutting all LOI-people was the best company policy, no more wasted time.
@@damienwursten I couldnt care less how they do it whether it be a Templated LOI or on email as long as we have ALL of the necessary details including their company details
Excellent video Damien and most of those can also be applied to building a business relationship in any sort of business.
Another tool I sometimes use is a NDA...Non Disclosure Agreements (or variations) are usually not worth the paper they're written on but asking someone to sign one is a good exercise...their response gives you a really good idea on how they're going to conduct themselves in business especially around being trustworthy.
I had one guy from Jersey ask for the NDA in word, then they gutted the remedy clause, used three different entities for the company name, address and company number (they didn't expect me to check), then refused to sign it under the relevant legislation (which required two directors or the co.sec. and 1 director to sign)...I told them to fuck off, then they circled behind my back and screwed my deal up.
Great video, Damien - amazing video to touch on some of the real key risks pertaining to physical trading company. Thanks! Always welcome to more sharing from the perspective of the traders :)
It’s true I left for two years and came back to watch this video. I am glad this video was made,I don’t want to get lost by the investment or numbers 🙇♂️ great other tips mentioned too!
Next skill that i want to acquire : time traveling
Great video and meaningful content as always Damien 👌
Thk man
brilliant video. Wish I heard watched this 2 years ago. You would have saved me $30K & 1 year of time waste
Thanks once again for a great content!
Selling below market price is such a common scam. When I crunch the numbers and send it to the counter party they usually don’t reply…that’s my answer, no reply.
May i ask, normally you buy from suppliers at market price and then sell at higher market prices. Normally is like that and it applies to metals and oil? Isn't more common to buy with a small disscount and then sell with a higher price close to market price, many thanks
@@juanricardo205 no rules…
Depend on market, origin, quality, current SnD, etc…
Great Video 😊
Regarding proof of funds, I don’t mind asking potential buyers for a proof of funds. In general, I get pre-shipment financing anyways. Because the commodity I trade is pre-financed 99% of the time. Even where there’s spot available, it’s always sold. So, when pseudo-buyers reach out to me, I always ask for evidence of their financial capacity. It’s part of the criteria to buy from us. It doesn’t mean they need to have a stack of cash waiting for a deal. But, there should be something to show for. The market is flooded with LLCs incorporated last month, with 0 trading history.
You are making my case.
This criteria makes no sense.
Ppl can provide a fake proof of fund, you have no way to check it.
If you want evidence of thier financial capacity asks for thier financials.
🤷♂️
Couldn't agree more about proof of funds and LOIs, have only heard from brokers who seem dodgy. One thing about sharing suppliers and customer details, OK as a general background but what if a potential new supplier asks who you would sell his cargo to? Maybe he wants to just check that you have a serious trade lined up and not just speculating, but there is the obvious potential for cutting you out later?
That the point.
If your supplier can pickup his phone and sell to your buyer. It means you don’t provide engouh value as a trader.
Hey bro! What about “letter of credit”?
It's a payment method, what abt it?
Are they safe?
Done like and share
Amaazing video
🎉🎉Nice🎉🎉！
I agree with most on here however I do not agree with your LOI assessment. An LOI simply tells us what the buying wants to buy in detail along with their target price. In our industry, thats the only way we can understand exactly what they want, what quantity, grade of product and we 100% ask for a target price as that lets us determine as to whether they are market savvy or not. To us an LOI is crucial prior to issuing an FCO
Dont know which industry you are in.
But… all the parameters of the deal, Quality, Target price, Payment terms, etc… could be exchange on a email 😅
Cutting all LOI-people was the best company policy, no more wasted time.
@@damienwursten I couldnt care less how they do it whether it be a Templated LOI or on email as long as we have ALL of the necessary details including their company details
@@raygoldberg5853w what industry are you in?