Secondary Market Intermediaries Commerce and Education (SMICE)
Unified Society of Commodity Traders (USCT) Professional Commodity Traders (PCT)
Society of Professional Commodity Traders (SPCT)
Founder: Division of FTN Exporting Australia (www.ftnx.net) Established 1988
International Best Selling Author and Trade Expert C/o: Davide Giovanni Papa
FTN Exporting is a registered business name with ASIC
Education: www.smice.net Trade: www.ftnx.net www.ftnexporting.com
THE TRADING ROUTINE
Posted: May 9, 2020
So you want to seriously make the attempt to trade in real commodities and you want to do so (a) for a long time in your spare time or even (b) as a a full time career. The latter is more conducive to opening a website in where the PCT also serves consultation for a fee while trading as a PCT . The PCT may also be tenured to serve as a broker or agent for another principal. In this aspect the PCT should obtain an ITFA certificate and should have been personally mentored by FTN Exporting for a period of time. A SPCT number is also conferred. In the former aspect, the PCT trades as often as they can in the spare time, while employed else where with scope of concluding a deal before giving up their employment status. In this aspect the PCT does not serve consulting services and simply trades from home or corporate office accordingly with such an aim in sight. Here the PCT is not mentored and has studied the FTNX doctrine intently.This applicant may be served an ITS certificate (on merit) and obtains a USCT number to show common ground with other like minded traders crossing their path. Below is the typical routine that a self learner should attempt to apply after purchasing the doctrine from FTNX , as per the offer made at the time.
- Assume: The applicant has purchased the FTNX doctrine from FTN Exporting directly on Jan 1, 2019. In this offer the applicant received 3 Q&A units with the purchase which must be used within 6 months of taking up the offer made at any given time
- The offer made at the time also allowed the PCT to attempt one single live deal with FTNX acting as the principal on the condition tat the PCT spends another 6 months practising aspects of trade as advised in the doctrine
- Some applicants followed our advice served in the publication and got the publication printed and converted it to a set of rudimentary books ( Excellent way of study ) Others decided to study the PDF from a lap top (O.K way of studying)
- The applicant after work and weekends and even at work during breaks is reading the doctrine slowly and intently. Matters of trade specified do not make a great deal of sense–yet; but he/she is absorbing a lot of information.
- Within 3 or 4 weeks the applicant feels empowered at what he or she is learning , as it’s all starting to make sense. The bigger picture is now forming.
- Within 10 weeks the applicant has studied the whole publication and revised many pages, some more than three times. He is confused with aspect of payments, so he uses one of his Q&A units to seek further clarification on one issue.
- FTNX gave a good clear explanation of the question asked which took 2 emails to finally resolve. The applicant has 2 email units left
- It’s now April 1, 2019 and as prescribed in the doctrine the PCT will now try to source and secure one single supplier of a wanted product.
- After spending weeks online studying what are wanted ‘export ready NBC products’ the PCT decided he will attempt to source one large shipment of Aluminium ingots at FCL FCA Incoterms and a revolving iron ore supply at VLBC FOB.
- He is excited as the PCT clearly understood all the terms and knows what to expect. He is informed. He now needs experience. Nerves are taking hold, as he now knows what’s truely involved , but he does feel confident to do the task.
- He has prepared his ITB for both iron ore and Aluminium ingots and decide to use another Q&A unit to show FTNX and serve advice; if his ITB is properly prepared. FTNX corrected some minor mistakes and overall gave the PCT a score of 9/10
- The PCT sent off the ITB to sourced potential end buyers found online . It’s now April the 20, 2019
- He has worked hard and made efforts to source other goods as well until mid June when surprisingly he got a positive reply to the ITB for Aluminium ingots. He was unsure how to reply and used up his last Q&A.
- FTNX shows him what to say and how reply and told him to dump the deal because of a certain terms and demands made( faults which was explained to him)
- He PCT got it ! He told the supplier that his demands were unacceptable and his confidence levels are rising intently because he is making efforts. FTNX could see such efforts and issued the PCT an ITS certificate.
- By Jan 1, 2020 the PCT contacted FTNX again, even though he had no more Q&A units to use, he was prepared to disclose new supplier he had finally secured for iron ore and asked if FTNX would lend support to test end buyers .
- FTNX said , “sure let me have a look at what you have.” He produced an excellent clearly defined OTS as instructed in the doctrine and passed it to FTNX. He is using the option in the offer made when purchasing the doctrine, to test one deal with FTNX.
- FTNX and the PCT worked together for another 4 months ( a lot of valuable time was needed) until a buyer was found prepared to sign the contract . A contract was signed
- FTNX and the PCT closed on their first deal together, alas the end buyer could not produce the DLC and the deal was in breach of contract. Nevertheless the PCT had indeed closed on a contract.
- FTNX showed how to demand compensation for dropping the contract. The end buyer paid $50,000.00 which was shared between the PCT, FTNX and the Supplier to cover expenses incurred. ( as applicable)
- The PCT learned so much with this one interaction, that he managed to close his own large deal alone 1 year later for VLBC waste paper at FOB.
If the above applicant took up mentorship , we would have been dealing wth the offer instead of the ITB very quickly defining that the mentored applicant had to learn the advanced orthodox aspect from the start while mentor is on stand by, which would have take up much more of the mentors valuable time. Mistakes are important as it serve and propagates the auspices experience. It is also important that the mentor does not do the work that is expected of the applicant is where merit and efforts made allows the mentor to participate in any pending dealing while serving directions. The applicant used all Q&A units offered at the time, which serves insight to FTNX, that allowed the applicant to receive an ITS ( International Trade Specialist ) Certificate which was posted by courier mail in hardcopy form bearing original signatures and seal of FTNX. Those who provided fake details ( address) when buying the doctrine, will not receive the iTS Certificate. In essence many ITB’s will fail until one is returned as positive. Many offers will fail until one is accepted by one end buyer. This is the level that must be practised intently as this is the level that will be reached often eventually, as experience grows. The PCT does not want to enter into such complex deals without first obtaining some good experience. Finally the PCT will enter into a few contracts perhaps 3 or 4 contracts before one contract between the end buyer and PCT is sealed; usually near the end of the 2nd year. We have provided contract models in the doctrine that must be used. Once the DLC to pay for goods offered is in the account ( in the control ) of the PCT, the deal will close even if major issues arise thereafter ; because the end buyer wants his goods and the supplier wants his money and nobody wants to take costly legal action as everyone works together to resolve such issues on a friendly amicable basis, regardless who is at fault. The importance here is that the pCT has secure real supply form the supplier now become the most relevant and the most important aspect of all, this is why a PCT simply cannot consider anything offers by ill informed others. Even if the PCT has to financially compensate one side or both sides of the deal by surrendering some of its potential gross profits in where at the end of the revolving contract period the PCT will still make a huge gain on one single deal, more than could ostensibly be earned working in a factory for wages, for 40 years or more for another person. Even at the lowest end of the scale lets say where US$ 1.00 per MT is the final gross profit earned in a 12 month revolving contract of supply; will generate over 1 million dollars in profit. The PCT answers to nobody. He is in control, and he is charge. He /she is his own boss. The PCT ‘earns’ such money; Luck plays no role. He earns such money because he has experience, knowledge and abilities that the majority of suppliers, end buyers and ill informed intermediaries simply don’t have. A PCT works hard for their money because the deals they are attempting to close on are huge and complex. “Those who think they can wake up one morning and trade in commodities based on stupid or ill informed unworkable and unsafe procedures are dreaming.” Aspects of logic also dictates a great deal in the nature of business. We apply logic gained by studying a formidable doctrine of trade The doctrine is the glue ,that takes all procedures, laws and rules and converts them to a viable and doable uniform routine that an informed PCT can safely apply world wide, as a respected professional entity. We need time to learn and obtain experience. We don’t accept unverified deals being closed as per claims made to us offer the years. Based on the above similar base routine only 1 mentored PCT managed to close on a contract in under 11 months from buying the publication , we know this aspect to be true because FTNX was involved in the deal. One non mentored entity holds the record for closing a deal all the way to DLC in under 14 months after buying our in-house doctrine another in 18 months. These were exceptional traders. All PCT are now expected (2020) to have closed on one contract in under 2 years, and close all the way to DLC in under 4 years is the standing average expectation . Anyone telling you differently is telling your stories. If our doctrine were available in a college or university a 3 or 4 year certification /study would be needed in where another 2 /3 year of experience would need to apply before a deal could eventuate may be assumed.These are complex deals, that supports one of the most complex business application on the planet. We have made the study easy to comprehend–gaining experience however must compliment the study.