Year-End a Good Time for Self-Assessment
Dec 18, 2015
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As the New Year approaches, we all have a chance to create resolutions for self-improvement. From personal to business, we ask ourselves, “How can I be better and what do I need to change?” As a grain marketer, I feel it’s helpful to share areas in which I struggled marketing my own grain.
Consistency. Having a consistent plan pays off over time. The marketing tools I used for 2015 included futures, options, and forward contracts. Specifically, I was not consistent enough with my futures hedging. I was too quick to lift hedges on a rally and too slow to lock in hedges on a downturn.
Greed. I became too bullish at the top. I took some great opportunities, but missed some too. I just wanted a little more. Events involving politics, disasters, economics, and weather make it easy to believe what you want.
Fear. I was too afraid to be wrong and became discouraged at times. How many people have you seen become paralyzed by pessimism? Worrying about the price and not taking action is an excuse rather than a solution.
Overall, I am pleased with my results. It is never a perfect game, but I plan to improve in 2016. Great advice is the first step, but it takes action to produce results. Remember that great marketing opportunities aren’t always pretty. Today, there’s plenty of negativity associated with commodity marketing, but the worst thing a trader can do is to lose confidence to make a decision.
Email Katie at email@example.com
Past results are not necessarily indicative of future results. There is a risk of loss as well as profits when trading futures and options.