3 Trading Methods You Need To Recognize

Have you ever traded anything with someone and left with the feeling or that malaise that you lost? Have you worn out with people when negotiating opposing interests? Did you notice that situations that require trading occur in any profession? Requirements of trading are given here.

Trading is exchanged, it is not a concession or a takeover. It is a basic means of getting what you want from others, offering something that meets their needs. The purpose of the trading is to reach an agreement when both parties have common and opposite interests.

We can trade anything, tangible and intangible issues. Examples of tangible issues are budget, schedule, and resources. Examples of intangible issues are recognition, trust, good working relationships, and a sense of commitment. That is, I can stay late at work this week in exchange for recognition from my manager.

It is important to keep in mind that trading in personal relationships and the work environment, in most cases, should be seen as a tool used to reconcile different interests. One of the mistakes people make is to think that trading is always used to take advantage of others. For us to have healthy relationships based on trust, the trading must have the objective of obtaining advantages for all the parties involved. For this objective to be achieved, the two parties to the trading must be aligned in this regard. The problem is that negotiators often adopt different methods. Identifying and knowing how to deal with these trading methods is essential to have a successful agreement for everyone.

There are 3 methods of trading. In this post, we will briefly explain each of them.

Soft Trading

In this method, negotiators are friendly and give more importance to avoiding personal conflicts. There is great sensitivity on both sides, with importance for the relationship. The parties easily make concessions to reach an amicable settlement. The problem with this type of trading is that there may be a lot of concession by one of the parties, which may end up feeling exploited or at a disadvantage about the trading process and its results.

Hard Trading

In this method, the ultimate goal is to win and, mainly, make the other lose. The parties see themselves as opponents, both tend to take very strong positions and are inflexible to changes in positions. Usually, this type of trading happens when it is not expected that there will be a new trading with the same parties in the future.

The parties acquire extreme initial positions, with great demands and petty concessions. This is because concessions are seen as a sign of weakness. Sometimes, the parties may pretend to have limited authority to make concessions and use emotional tactics to obtain concessions. In general, this type of trading compromises trust and the relationship between the parties, reducing possibilities for future tradings.

Principle-based trading

This method was developed by the trading Project. It emphasizes the resolution of issues based on merits and gives priority to mutual gains. There is a concern to have the correct perception about the interests of the other side.

In this case, trading is seen as a tool, there is a legitimate exchange of information between negotiators. In case of conflict, results are based on fair criteria. She is also known as being tough on problems and light on people. That is, it is possible to get what you want and still act decently.