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Thank God! It’s the month of love and I am giving away my new book free of charge (FOC). Did you read right or are you sleep-reading? Take a pin and pinch yourself because it’s real. I am giving away my new book to promote knowledge and thus improve the thought-life of my fellow Africans. A man (woman included) they say cannot advance more than his quality and quantity of thoughts –Think and Grow Rich, Science of Getting Rich, etc.

 

Ok, I am sure you are getting into the flow of things by now and the initial shock is waning. There is this common saying that if you want to hide something from Africans, just simply put it in a book (Africans don’t read) and this saying can easily be justified by looking at the state of Africa – corrupt leadership, highly poverty-populated, poor legal structure, increase-genocide, law enforcers become premier law abusers and the list of formal illiteracy symptoms goes on.  

 

The great Indian economist and the first Nobel Laureate – Amartya Sen – demonstrated that famine is not caused by the availability of food supply but the inability to acquire or entitle oneself to food through the market. You don’t really need to look too far for an example, just look at the South-South part of Nigeria, they have one of the most highly demanded resources in the world – CRUDE OIL – in their land and they live in abject poverty.

 

On a personal level, you could be very wealthy (resources, talents, etc) and be the poorest person in the world because you cannot maximize your wealth through the market. Maximizing your wealth starts from educating and exposing your mind to fully understand the best way to get this done. In 2007, the first Ethiopian Commodity Exchange was born to alleviate poverty in Ethiopia; Ethiopia has previously suffered the death of a million citizens through starvation because there was lack of access to abundant food. Please, click HERE to watch video.

 

There is definitely no substitute to education and this is why I am giving you my new book without money-cost but there is definitely a cost. Before, I tell you what that cost is, I will like you to understand the value of what you are getting for free. It took me more than Five Hundred and Fifty Thousand Naira (about 3, 700 USD) to gain this knowledge from a leading professional and ethical exchange trainer in the world – Dubai Gold Commodity Exchange.

 

 

This book has been simplified for your understanding of the commodity market. People find it difficult to pass the professional exam at their first sitting but I have made this book so simple that you could easily understand other books if you choose to go deep into it. This book is definitely a beginner’s guide to commodity trading. I would also like to give you some advantages of investing in commodity trading that you may not be aware of;

 

 

 

 

Hedging: Commodity Exchange can be used to manage risk by establishing a futures position that is equal and opposite to the position held in the physical segment. If you buy a 50 million naira worth of physical crude oil at 50 Naira and hoping the price would rise to 100 Naira but it fell to 40 Naira at the point of sale, you have lost 10 million naira with 40 naira price. If immediately you buy it 50 Naira, you sell it in NYMEX (one of the oil commodity market) at N60. Even if the price goes down, you have hedged your risk.

 

Leverage: Commodity futures operate on margin; this means that only a fraction of the total value you need to invest needs to be available in cash in the trading account. Example: If you need to invest fifty thousand naira (N50, 000) on any of the commodities like gold, silver, crude oil, stocks, etc, you may only need to provide two thousand naira (N2, 000) only to reap the profit of what fifty thousand naira would give you. You cannot do this for any normal investment like the stock exchange, real estate or term deposits where you have to provide the full fifty thousand naira to reap the full profit.

 

Commission Costs: The commission cost when dealing with commodity futures is very small compared to other investment like shares and also very small in dealing with the underlying product. Imagine the cost it would take to buy physical barrels of crude oil – logistics, warehousing, man power and skilled workers compared to electronic commission where you just pay a little fraction of the capital invested once unlike the stock market where you pay commission every time you buy and sell your stocks.

 

Liquidity: Speculators are allowed in the commodity exchange hence the liquidity but how liquid a commodity is depended on the contract you take. For gold, crude oil, stocks are readily liquid but for agricultural products like maize, coffee, etc especially when they are in season are not easily liquefied.

 

Use of Profit: This is the only investment I know where you can use your profit without actually selling off your capital. In real estate, you must sell the properties in order to make use of the profit; in bank investment, you must wait till the end of the investment period (30 days, etc) before your profit can be sent to you account; in the stock exchange, you must sell off the shares to get the profit on capital gained but in commodity exchange, you can use your profit without offsetting your position.

 

Zero Value: The price of commodities can never and has never gone to a zero value unlike the case of the stock value of Enron which went from $95 to less than $1 when the company filed for bankruptcy. Another beauty of the commodity market is that all commodities do not rise and fall in unison like stocks; in the bearish phase of stock exchange, all stocks fall in unison but for the commodity market, a bearish tendency in the metals does not mean a fall in the agricultural products.

 

I hope I have not lost you with the vocabulary associated with this market but you will get to learn them by reviewing this book and note that there is really no Nigerian Naira in the commodity market, it’s just simply me dreaming of the day we would have a Lagos Mercantile Exchange or a Port Harcourt Oil Commodity Exchange. All in all, we can start now by educating ourselves for the future challenges. You may watch the video of how an ambitious lady in Ethiopia built their first commodity exchange; please, click HERE

 

 

I am giving out the book FREE but you could choose to buy it if you are outside Nigeria by clicking HERE or you can choose buy it in Nigeria by contacting me; click HERE.

 

 

 

If you want it FREE, these are the steps that must be taken;

1.      Download a preview of the book and read (It is only 5 pages) by clicking HERE

2.      You would recommend the book (Commodity Trading for Start-Ups: A DGCX perspective) to 25 people by sending a mail to twenty five (25) unique e-mail addresses and copying my e-mail address – dipotepede[at]poetsolvers.com  

3.      Your recommendation must show an understanding of the preview you downloaded and some of the things mentioned in this blog post.

4.      You must refer this post in the mail; the url is https://www.dipotepede.org/2009/01/31/my-new-book-give-away/

5.       All mails must be sent before 11.59 p.m. (GMT +1), 14^th of February, 2009

6.      When you are done with 1-5, you will receive a mail from me on the 15^th of February to download your FREE copy

 

 

Thank you for taking time to read this article to the end! Whichever route you choose in obtaining this book (buy or get it FREE), the sole aim of this post is for you to read the book. Remember, the words of Albert Einstein’s definition of insanity: “doing the same thing over and over again and expecting different results”. If you need a different result this year, you need to embrace a different knowledge even if you choose not to instantly apply the knowledge, your insight into commodity trading may raise your sight in your life’s pursuit.