The secrete to successful trading:
is to know & understand the difference between the cost of TradeDollars and
CA$H (regular money).
TradeDollars
costs
= Variable costs + new
customer
CA$H
costs = variable cost + fixed
cost + profit/loss
Total
sales - (fixed cost + variable cost) =
profit/loss
You need to be able understand the differences of trading in two different and independent economies. eg. CA$H
economy & a virtual economy.
CA$H because of the way it is created is a
scarce commodity & helps to drive prices down because of the competition to
get the CA$H. The demand for the
G&S is there but not all the customers can afford to purchase because of
limited amount of CA$H in circulation.
The actual amount of CA$H
in circulation doesn't equal the amount of G&S available for sale or could
be for sale. TradeDollars are abundant &
limitless as the people indirectly exchange via TradeDollars.com
what is already there or can be created by each & every individual.
Money is the people, a belief, without either there is no money.
The forces of supply &
demand that dictate PRICE changes from one economy
to another especially when you change the
medium of exchange used to store value. In the TradeDollars.com
virtual economy the demand for most G&S is strong.
The ability for the customers to pay is greater because the medium of exchange
used is what people have in abundance. Their TIME (to be of service to
others in exchange for TradeDollars) &
their assets, their goods (they have accumulated over their TIME spent) in
exchange for TradeDollars.
The Basis of any successful
business is the ability to know
the different types of costs of running the business and whether an adequate margin or
mark up is added to the
cost to ensure a profit. Recognising all the costs that are involved in producing the
goods or services that your business offers. Classify these cost into
fixed and variable cost. Recognise the
relationship between cost, profit and volume. Know how a break-even point is calculated.
Know what the unit cost
is in cash per dollar.
There are 2 things a
business needs to do, increase it's turnover & conserve it's cash flow. This can be achieved by exporting &
importing into other local
economies. Running a business in the
CA$H economy
and
being able to purchase goods & services from a virtual economy.
Another way of looking at it.
Exporting your goods & services
into a new virtual market of traders that might live next door, interstate
or overseas will increase
your turnover & to a new customer database.
Importing
goods & services, purchasing them for TradeDollars that you where going to purchase with CA$H
will conserve your cash flow
and enhance your life style.