and the chain reactions created by global events (inflation, growth rates, manufacturing, employment, interest rates etc).
101: Reasons to trade are all around us and countries worldwide regularly trade with each other due to differences in:
Technology: ability to turn their resources into outputs like goods and services
Resource Endowments: current natural resources or capital stock
Demand/Preferences: Chinese may demand more rice, Japanese more fish ...
Economies of Scale: unit production costs fall as the scale of production rises
Government Policy: tax and subsidies can shift prices
In a nutshell
The best trades come from markets:
where trends are dramatic, in one clear direction for an extended period of time
where specialist skills (geopolitical, risk management etc.) can be capitalized
The worst trades come from markets:
where moves typically last a few seconds or minutes
where potentially high value deal/information flows are obfuscated
Further drilling down into your ideas often reveal secondary nuggets of data that help
correlate/forecast markets (beyond the scope of this introduction)
but as a general rule, don't start a trading plan without a solid reason that you understand. Take your time to question everything and
don't readily accept value from a 3rd party source.
Get your company in shape with market leading innovations
Strive for strong cash flow and robust profit growth with improved probability of success (no feast & famine).
Get in shape and identify/create new equity now!
Many new opportunities are out there for entrepreneurs to found new organizations and competitive positions as incumbents' sources
of advantage decay.