How to maintain confidence with your plan
By Blake Early, co-founder DGE, Inc.
The best lesson I ever learned as a young trader was the theory of “edge.” It seems simple enough, however, I don’t think it really is. If you are asked in an interview, “what is your edge?” how would you reply? I know I would struggle with this question.
As an option market maker my edge was being to buy the bid and sell the offer. In other words, buying something for less than what it is theoretically worth, and selling something for more than it is theoretically worth.
If you found a dollar on the street you wouldn’t sell it to your friend for $.75 and say, “I made $.75.” You’d be undervaluing what you have by 25% and leaving money on the table. That is an easy example because you know what $1 is worth, and you know you wouldn’t sell it for less than $1.
Let’s tie this concept to grain marketing. When it comes time to sell, know what your grain is worth today and know what it is worth tomorrow. Know the carries, know the cost to carry, know your freight costs, and know what your time is worth. As a co-founder of DGE, I can say our team has put a lot of our efforts into being able to provide that valuable information for you. I believe decisiveness is an edge. I think being able to pull the trigger on a decision quickly and with confidence it is right, is a major edge. DGM is more than just a software, it is an edge.