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Value – Success Financial Freedom

Value

To exchange goods and services, an individual has to agree on the value of those goods and services to make an exchange. Value, which is the relative degree of importance or potential something has in fulfilling a need.  The actual price at which goods and services are exchanged will be determined by the fundamental economic law of supply and demand.  The law of supply and demand is founded in human fear and greed. Both fear and greed will compel people to act or not act depending on their needs in relation to the perceived external condition. The price for goods and services will be determined by the individual needs in relation to their belief in their ability to fulfill those needs.

Greed is founded in a belief in scarcity and insecurity. Both those beliefs generate fear. Greed is a belief that there will never be enough available to fulfill oneself in combination with a belief that one always needs more to feel secure or satisfied. When you become greedy in trading, you would more likely to lose sooner or later, the behavior losers displays will be consistent with what they believe they always do to satisfy the deficit, unfortunately, it never be satisfied.

If the supply of something is limited in relation to the need, those that are in need will compete for the available supply. They will compete by their willingness to exchange more resources(pay more) than will someone else who may also be in need. However, if the supply is great in relation to the need(demand), there will be no fear of scarcity, thus people will conserve their resources (money)by diverting them to other needs or just waiting for the possibility that the price may come down.

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