Sunday, August 7, 2011

The Law and Physic of Trading by N00bKefka

Before I m going to talk about the Law and Physic of Trading. Let me give your a brief introduction of Trading itself. Trading is whereby people uses the stuffs they don't need to exchange for the stuffs they need. The very first form of trading is call 'bartering'. I m pretty sure you guys who are reading it knows what it is. Then, here come currency, one of the best invention in history. It serve as a medium to gauge how much the goods are worth using money. Hoho, correct me if I m wrong, I m pretty sure everyone needs money. Believe it or not, even though currency is invented thousand of years ago, bartering still haven't go obsolete up till today.

Now, the first rule of the Law and the Physic of Trading (also the most important one) is whoever who offer the trade first will have the disadvantages. Hey, there's always a reason for why they use the word "offer" instead of "demand". Why do I say that? Because normally people trade because they are desperate for the goods, they need them more than you. So remember, whether if it real life, game or trading cards, feel free to bargain and negotiate when someone tries to sell you something or wants to buy something from you. It will be foolish if you don't negotiate for the price that have been offered to you. Believe me, if any retail shop allows bargaining, I will do so!

Here comes rule No.2, he who offer the trade always finds means to scam. Oh, of course they do, how else would someone makes profits? The prevention for this is never act as if you are an ignorant person who seems to know nothing about this world. On the other hand, it is YOU who is going to make them look like they are the ones who are ignorant. Go by the rule of 2, double the cost when they want to buy, and reduce the cost by half when they are selling. First, they will say things like the original cost is lower than that, then they will ask for more, but keep reducing/raising your next offer and they will give into your original price, or maybe more. This method links back to the first rule.

Rule 3, someone will definitely lose out. Pretty simple, always a win-lose situation and never a win-win situation. If you think that your trade have a win-win situation, probably you have already lose out.

Next, the fourth rule. Nothing in this world actually worth their cost. It's always about supply and demand thing. It's also about how others going to tackle it. It's never about the usefulness of the product. Who knows diamond is such an expensive stuff. It's not a very useful thing, it doesn't contribute much to the society. But for some reason, people demand it and they supply is minimum hence the price is high.

So the above rule I mention sound really mean and is trying to take advantage of the offer. The final rule of the day gonna explain it all. There has never been a fair trade all along. Not in history, not now and never in the future. Try putting a minimum bit of conscience in the trade, you will find yourself losing out.

Remember this 5 golden rules of the Law and Physics of Trading and find your place in the capitalist society.

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