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Norman ,
sure you are right. I didnīt mean to say that anybody could dictate prices. It will
always be based on a s/d balance, with or without you, me and the commercials. But as
much as the enduser determines his willingness to pay a price as well the producer
determines his willingness to sell for a certain price or not.
But the main thing is we get paid for adding liquidity - and thats a nice job. We are
the oil in that big machine.
Nice weekend - Ulrich
nwinski schrieb:
> bullcom wrote:
>
> > I donīt think it will take my trading much further, but anyway. The derivates
> > have been invented for hedging, speculators just offer the liquidity to keep
> > it working. Take the commercials into consideration and think about the
> > equation again. If you are long and the commodity moves up you can be sure
> > that the commercials will pass on these price increase to the end consumer, no
> > matter if he hedge future needs or not. So you are not taking some other
> > traders money, you take the end consumers.
> >
> > Isnīt everybody doing exactly that?
> >
> > Regards - Ulrich,
>
> No, I think it is to the contrary. The end users determine whether the market
> will go up or down.If the consumers don't buy, it doesn't matter how much the
> commercials try to charge, they won't be able to sell it to anyone. As for taking
> money from anyone, I feel that I get paid for adding liquidity to the markets. I
> usually buy on weakness and sell on strength, thereby adding a valuable service to
> the markets, for which I hope to get paid via a commensurate return on my capital
> for the risk I am taking.
>
> Regards,
>
> Norman
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