Symbiotic Relationships

I’ve said it many times (probably to the point of boredom): the most important part of commodity trading is relationships. Usually I mean building great relationships with great people and companies.

But there's another side to this - sometimes you’ll need to work with people and companies you’d never choose to work with in any other walk of life. It’s just part of the game.

Maybe there's one shipping line that controls a key trade route. You might not get to choose which warehouse your metal was released in. Sometimes you'll need a same-day payment pushed through and that means charming the uncharmable finance gatekeeper. Or maybe you’re long material and have to take that annoying client out for the second time this month because they’re the best home for it.

These awkward, sometimes frustrating partnerships are part and parcel of the commodity business, from front, to middle, to back-office. You have to put on a brave face, swallow your pride, and get the deal done anyway. That’s not two-faced, it’s professional. The best traders can turn situations they’d rather avoid into workable solutions.

I don't want to be overly negative - most of the relationships you build will be great, and many will last long after you leave your company or even the industry. But never forget, adaptability is one of your greatest assets. Manage the best clients and the worst ones equally well, and never burn a bridge you might need to cross again.