----- Original Message -----
Sent: Friday, March 19, 2004 10:28
AM
Subject: Re: Re: [sharechat] Mining and
Forestry Stocks reply TA David - Invictus maneo
Dave
I believe that you are an intelligent man, so
without sounding condesending I would like to give you a lesson on life and on
trading.
You most likely drink some sort of beverage,
coffee, tea, mate, beer, marajuana juice what ever.. You are buying a
commodity, you are trading in a commodity. You are affecting Supply and
Demand.
Now if I ended here you would
most likely reply in your rather obfusative manner a retort pertaining to the
fact that I am a professional trader in commodities and do not take
posession of said item. That is correct HOWEVER! I do perform a
very valuable and very needed function.
Lets use my favourite grain as an example;
Soybeans
The farmer produces soybeans and the commercial
buyer buys them to manufacture his products, tofu, soy sauce, soy plastic etc.
Now the farmer must obviously recieve enough for his crop to cover expences
and to make a profit. The commercial buyer must buy the product at the
cheapest price possible. The commercial buyer knows how much the primary
producer needs to breakeven therefore he knows how much profit the producer is
asking. So he bids at the lowest level possible so that with bid and ask
fluctuation it eventually reaches a price that is amicable to both parties.
Now all this is great in a
perfect world. Where weather is right all the time, where bugs don't exist and
where natural disasters do not occure.
Unfortunatly this is not the case, we live in a
world of full of ' acts of God '. Farmers do and can lose a large percentage
of their crop to these natural disasters. This then affects the Supply and
Demand. The farmer has less crop to sell but needs to get the same
overall price that was needed when he had the whole crop intact to
sell. The commercial buyer HAS to pay the higher price because he needs the
product to sell to stay in business. Now what happens here is that the price
reaches a level that cannot be afforded by the consumer, so the consumer
ceases to purchase the product, this butterfly effect flutters along to the
commercial buyer who is going broke in turn stops buying from the producer who
then cannot afford to grow the crop, alas! no more soybeans.
Now along come Woody the saviour!!! da de
da!@!!!!
In out frail but workable capitalistic world we
have a means to avoid these Major problems with supply, demand and price. We
have created the Futures Market. Here the farmer can forward sell his crop,
effectivly getting paid before he even produces the beans. Now if the crop is
a bumper the farmer can only recieve the locked in price that he purchased his
contracts for. This can be good him as he knows his end profit beforehand. If
on the other hand demand outstrips supply he does not take advantage of the
higher prices now being asked. The Commercial buyer can also Purchase
the Crop at an agreed price in the Future but conversly cannot take advantage
of possible lower prices in the future. So it is the Professional Trader that
runs the Futures market without him and of course the amateurs there would be
no market and there would be no commodities for sale in the world. So lamblast
me all you will, be rude, condesending and abusive as you can but you would
not enjoy a world without the professinal Trader of commodities.
Now you also had a major dig at my involvement in
Forex trading. Ignoratio elenchi
Do you purchase shares from other
countries?
Do you purchase Shares in any Banks?
Do you have a Bank account?
Do you have a credit card?
Do you have a morgage?
Do you purchase goods from other
countries?
Do travel overseas?
If it is yes to any of these questions then you
also are a Forex Trader.Though miniscule at best.
Ignoti nulla cupido
The NZ Dollar is floated, Correct? What is it
floated on? The Tasman sea?. Lake Blah Blah? What?
It is floated on the Sea of the Forex Exchange
without this exchange currencies would collapse. We could all adopt a non
floated currency, however importing and exporting goods and services would be
at the mercy of the supplier.
Since you like Horace so much then I think you
should take pen in hand and
' Incudi reddere '
----- Original Message -----
Sent: Friday, March 19, 2004 6:23
AM
Subject: Re: Re: [sharechat] Mining and
Forestry Stocks reply TA David
Reasons outlined rather than simply Horace`s
quote , though a littlle more difficult, would lend credibility to
your rather bland statement.
David
----- Original Message -----
Sent: Thursday, March 18, 2004 11:12
PM
Subject: Re: Re: [sharechat] Mining
and Forestry Stocks reply TA David
' credat judeaus Apella '
Woody
----- Original Message -----
Sent: Thursday, March 18, 2004 7:11
PM
Subject: Re: Re: [sharechat] Mining
and Forestry Stocks reply TA
Just as in Law - Ignorantia juris haud
excusat , Ignorance of the law is no excuse . Similarly in ethics
there is no convenient half way house . You are ethical or you are not .
No good saying you do not know what are the ramifications as to the
activities a company or investment you choose involves
itself in.. You should make it your business to find out .Of
course there are limits to how far enquiry can proceed. This is the
prescription for those who want to adopt a holier than thou
position.
Unfortunately pragmatism is
the oil that lubricates how a burgeoning population interacts
and operates in an increasingly more and more complicated world. A world
full of Mary Poppins` would grind to a halt..
Lead balloon though the
proposition is - I see Forex speculation (there is no more
sanitary word for that activity) as perhaps the most harmful
activity . Don`t just blame the George Soros`for creating tidal
waves that can disrupt economies . It is the combined effect of
individual speculators as well . Profiteering without a drop of sweat
from the forehead . One coral does not build an island but they
each contribute to an outcome . I am no Mary Poppins but I could not
deal in Forex as a speculator . Nor would I deal in property ( domestic
that is ) speculating in that field you are playing around with
the dreams of young couples aiming for a first house
and then family. No way ! At least with shares per se one is
not dealing in necessities of life required by others.
Futures traders in commodities could be argued as a negative
activity from a social point of view as well. Where does the list
end ?
David
Stevenson
See IRG research reports
