How to Tell profits in trading?

How to Tell profits in trading?

It is a question easy to answer ..

When a commodity is traded, the profit is achieved when you buy this item at one price and sell at a higher price.

Which we can not achieve a profit unless the price of a commodity to sell us more than the price of Hrana her.

On the basis of simple equation: Profit = Price - Buy Price

We buy and sell at higher price .. Thus, profit is achieved.

Must, before we buy a commodity for trading that we expect most to make sure that the price will rise.

If we made sure that the price of a commodity will rise after a period of time, we buy and wait until the price rises really high price and then sell them.

So we can not only achieve profits in emerging markets, ie markets with high prices on a daily basis.

We control the movement of prices and when we expect that the price of a commodity are emerging that is, they rise on a daily basis, we buy and then wait until the price rises Flavnabieha and we get the profit.

But what if we expected that the price of a commodity will decline and will not rise?What if we expected that car prices will go down in the coming days and will not go up?Of course it would be foolish to buy a car now, because we find that the price will fall if we sold a few days after we will suffer from the loss.

If the price of the car is now $ 10,000, but we expect in the coming days that the price will drop to $ 8000, it would be foolish to buy it at $ 10,000 because we find that the price was $ 8000 a few days after we sold at that price if we will suffer a loss of $ 2000.

If .. We can not begin to buy only when we expect that prices will rise and the rise of markets.

This question has a logical, clear, wondering why emphasize it?That's because we bear markets in any market with low prices we can also achieve a profit..!!

How so?

Imagine that you have a car equal to the market price now $ 10,000

If car prices in free fall and your car after a few days the price will fall to$ 8000, how can it be profitable?

Simply will sell your car now and before dropping the price at $ 10,000 and put in your pocket this amount, would wait until the price falls to $ 8000 then you buy at this price.

What's the result?The result is that your car returned to you along with the profit of $ 2000.

Has sold the amount of $ 10,000 and then prepared to buy any amount of $ 8000 you prepared your car and with a profit of $ 2000 ..!!

This means that you are able to profit from the market completely falling Kthakikk to profit from the rising market.

With one difference..

You are bullish on the market (ie, where prices are rising day by day) I started to buy the deal and then sell Onhiha.

I bought the car at $ 10,000 and then sold it at $ 12,000 and made a profit.

The bearish market has begun to sell the deal then Onhiha purchased.

I sold the car at $ 10,000 and bought again at $ 8000 and made a profit.

In the case of emerging market: The purchase price is less than the selling price.

In the case of the falling market: The price is also less than the selling price.

But what is the arrangement of different transaction.

In the rising began to buy and sell finished, and in the bearish market started selling and buying finished.

If it does not matter that prices are high or low to make a profit trading.

It is important to have your prospect of the market is true.

If predicted that prices will rise first and then buy the item would sell when they actually go up.

If the forecast that prices will fall first and then sell the item you buy when it goes down really.

In both cases the purchase price will be less than the selling price, but no different except the order to do the deal.

It is interesting that in all financial markets, called the term "bull market" Bullish market bullish and the "market Bear" Bearish market downward, in the financial markets reflects the Taurus Bull for the forces of demand, power purchases drive prices to rise and express Bear Bear for the forces of supply, sales force that drive prices down.

When the demand for a commodity to be great and a lot of traders willing to buy this item price of this commodity will rise quickly and said that the market is controlled by the bulls bulls who are pushing up prices.

When the supply is a commodity to be great and a lot of traders willing to sell the item price will drop quickly and said that the market is controlled by the bears, bears who are paying the price low.

The market of any commodity is an arena for conflict between the bulls and the bears overtook the bulls, if the result was higher prices and if the Bears beat the result was lower prices.

Is what we have said a month forms of expression in all financial markets, and often will be met with this expression is interesting in different markets.

Take, for example:Imagine that there is some kind of timber per ton of it is equal to $ 2000 now, but you and your study of the market to come to the conviction that after one week will increase the price per ton of this wood to 3000 $. How can you make a profit?Answer: You pay the amount of $ 2000 and buy tons of this wood, and wait for the truth, if your prospect will increase the price per ton to $ 3,000 then sell what you have and the new price has thus achieved a profit equal to $ 1000 from this transaction. (Sale price - purchase price).

I started buying and selling finished.

Example 2:Imagine that the same type of wood, which is equal to a ton of it now is $ 2000 but you from your studies of the market come to the conviction that after a period of time will decrease the price per ton and up to $ 1000, how will profit?Answer:This will sell a ton on the market now at $ 2000 and will be in your pocket $ 2000, when the lower price per ton to $ 1000 will buy again at $ 1000. Thus wood is up to you and with him won $ 1000.

You might ask an important question ..

How do I sell my wood and I do not I own?Well .. Stguetrdah ..

When reached to the conclusion that the price of wood will fall after a period of time, will go to a timber merchants and ask him to lend tons of wood to return to him after a week, for example ..

If approved and will take tons of wood, which borrowed and run it to market and sell them at $ 2000, now you have $ 2000 but you are required to re-ton timber to the dealer who is giving him.

Well wait a while and when the price drops to $ 1000 per ton as I expected would go to the market and buy a ton of wood $ 1000 dollars, and return it to the merchant, leaving you $ 1000 as profit net for you.

What if the price of wood instead of going down?If we assume that the price per ton was $ 3,000, meaning that you be able to re-ton, who borrowed must be bought at $ 3000 but does not have to have only $ 2000, if you need to add from your pocket amount of $ 1000 to compensate for the difference to be able to re-wood, which borrowed.

When sales start will be all I have is that the price goes down so you can purchase at a lower price than the selling price.

As we have said that the gain does not take place unless the sale price is higher than the purchase price, and the matter is important to arrange the deal is that in the end of the deal to be sold by the price at which the item is higher than the price you bought it.

From this example, you will see that the gain can be achieved in the market bullish and bearish market. The important thing is to believe your prospect.

In the financial markets is called LONG term begins when the deal to buy The term SHORT when it begins selling the deal.

You can think of that LONG and SHORT means buy means sell.

Why do not we apply what we have learned now on the margin trading system?Know that there is no difference between a commodity to trade in the traditional manner and to trade on a margin of only you are in the margin system would not only pay a fraction of the value of the item that Sttajer them.

To get back to the previous example and we'll auto trading margin in the case of emerging market and the market bearish.

Remember that we are dealing with the agency will deduct $ 1000 margin for every car user decide to trade in, and remember that our account with the company is $ 3000.

In the case of emerging market

Suppose that the price per car is $ 10,000 and assume that we, through our follow-up to the car market and have come to the conclusion that car prices will rise in the coming period, we will think if you buy a car in the hope that we can sell at a higher price later.

We will buy 1 lot of cars of any agency, we will buy one car where a car valued at Lot = $ 10,000.

Agency will auto deduct $ 1000 from our account user retrieves the margin after the completion of the process, and will remain in our account, a $ 2000 margin available is the maximum amount that can lose in this deal.

Suppose that after Hrana of the car dropped car prices to 9000 $, if we sell the car at the current rate we will need to add $ 1000 of Jaibna to complete the value of the car which we purchased from the agency at $ 10,000, deducted Agency this amount from our account to make up the difference.

But we will not sell and we will wait ..

Yes .. Suppose that prices rose quickly and became a $ 12,000 price of the car.

If we sell the car at the current rate we will be able to pay the full value of the car and will remain $ 2000 we won two of the deal.

We will decide to close the deal and Snamr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car that ask us to him, a $ 10,000 and the remaining amount of $ 2000 as profit will it add to our account has yet to re-margin the user.

Will have our account = $ 5,000.

Thus, the profit that we have achieved:

Profit= Sale price - purchase price

= 12000 to 10,000 = $ 2,000In the case of the falling market

Suppose now that the price of the car = $ 10,000, but we and our follow-up of the market we came to the conclusion that car prices will go down in the coming period.

We will think the current price to sell a car to re-purchase them at a lower price later.

Of course, we have very car now, so we'll Bagtradha of agency vehicles and Snamrha to sell immediately on the market at the current $ 10,000.

Agency will implement it and be deducted from our account $ 1000 margin user. Whether we bought the car we sold or we are beginning to deal and we are demanding to pay the full value of the car in case of purchase or return the car in case of a sale.

Will remain in our account the amount of $ 2,000 available margin, and we are now demanding the return of the car that Aqtrdhanaha.

If we assume sell us the car after car prices rose and the price the car = $ 11,000.

This means that if we decided to buy a car at the current Senlzm add $ 1000 of Jaibna where we sold the car the amount of $ 10,000 and the car now = $ 11,000 so that we can return to the Agency we need to add $ 1000 deducted this amount from our account with the agency if we decided to actually purchase.

But we will not do .. We will wait ..

Yes, we have reduced prices of cars and the price of the car = $ 8000, that is if we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8000 and still have $ 2000 of the price that we sold the car in which the gain to us.

We will do this and Snamr Agency to buy a car, it will be implemented and the company will pay $ 8000 and $ 2000 will remain will be added to our account has yet to recover the margin will be Our user = $ 5000

Thus, the profit that we have achieved:

Profit= Sale price - purchase price

$ 10,000 = $ --8,000 = $ 2,000Thus you see that in the trading margin in the traditional manner Kalmtajerh can always make a profit in the market bullish and bearish, and the important thing is to believe our expectations.

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