A. LACK OF KNOWLEDGE AND PROPER INFORMATION AMONG INTERMEDIARIES
Most experts and keen analysis of the industry often lament and bemoan one nagging fundamental shortcoming of the modern Internet-era class of brokers, agents, and other intermediaries. Namely, as a class, they tend to be overly handicapped and plagued by a general lack of education, training, knowledge, and proper information concerning the true nature and workings of international trade and its fundamentals and basic procedures.
Mr. R. Ambardar, a broker, experienced for over 10 years in international market development and advisory services who has personally closed several petroleum deals, calls “lack of experience and knowledge” one of the principal primary reasons why many brokers and facilitators fall in crude oil endeavors and never close any deals.
Many people are attracted into this business because of [the tales they hear about the] kind of money one can earn on account of successful deals,” Ambardar asserts. “Many agents fail, [however], to understand that requirements to succeed in this business are very demanding, [and that] only those who have years of hands-on experience and thorough knowledge of the industry can strive to do well as middlemen.
Echoing what almost every other respected expert in the field emphatically asserts, Ambardar adds, that “To become a ‘Facilitator’ in the oil business,… what you actually need is right knowledge and expertise [since this is what will help] you hook up genuine buyers and sellers. One should be in the industry for long to have acquired knowledge related to the dynamics of this business.
In the same vein, Davide Papa, the co-author with Lona Elliot of “International Trade & the Successful Intermediary,” one of the most prominent experts in the field today on the basic methodology and procedures of international trading by brokers and intermediaries, asserts that, Without the requisite knowledge of the correct trading procedures, you [the broker or agent/intermediary] are simply wasting your time by attempting to trade. The vast majority of traders you will meet on the Internet don’t know how to close a deal, and most don’t even know how to start a deal correctly, let alone bringing one to a successful conclusion.”
Consequently, says Mr. Papa, “Anyone attempting to do business with these types of intermediaries [or with their procedures] will also be unable to close a deal or collect a cent in commission, no matter how long they trade for or how hard they try.”
What Misguided Agents and Intermediaries erroneously think is “trading.”
Yet, as a factual matter, most (indeed, just about ALL) brokers and intermediaries that one meets on the Internet who claim they have oil to sell, or who, for example, flood my Consultancy Office with “offers” and “deals” by the dozens every hour of the day each day, haven’t got even the foggiest clue of what is actually involved in proper trading, or how it works or is done. Almost to a man or woman
They essentially think that all there is to oil “trading” is basically the accumulation of any number of some copied generic documents – ‘SPAs,’ ‘LOI,’ ‘FCO,’ ‘ICPO,’ and what have you – with almost none ever verified, and passing them around on the Internet to potential buyers or their agents, asking them to “just sign,” “just sign”! Indeed, what is even worse, they hardly ever have the foggiest idea of even what their PROPER function and duty is, or should be, as an intermediary in the modern Internet era of TOO MUCH information and data, but TOO LITTLE quality or genuine information and data!
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