How profits are realized in the trade?

It is a plain Alag heedless. When trading tuning what the profit achieved when BUYS this commodity price and sold the vegetables at a higher price. No, we can not achieve profit only if the price Benna commodity price greater than purchasing them. On the basis of a simple equation : profit = price-purchase price buy and sell, but at a price Er higher. Thus achieved profit. Before that, he should buy a commodity to be traded expect Pa the large degree of certainty that the price will rise. If we made sure that the price of a commodity will rise after a period of Hello life calculated, we bought and wait for the price to rise already eighth sell high price. Therefore, we can not achieve profit only in the markets Asa several, any market with high prices days behind the U m. We control the movement of prices, and we expect that when the price o passion is now rising, a rise on days behind, we buy and then wait until the price rises already Venbi Abi, we will get the profit. But what if we expected that the price of a commodity will not Ertv p? What if we expected that the prices of cars in the days cascade. Dermis will shrink and will not rise? of course, it would be foolish folly purchase of a car now, because we find that the price will go down days after If Penaha S. suffer from the loss. If the price of a car is now $ 10.000 but we expect P j coming days, the price would fall to $ 8000. it would be folly to bought at a price of $ 10.000 because we we find that the price is $ 8000, days after If Penaha% pw the price would suffer a loss of $ 2000. If ... We can not begin to buy only when we expect that Wallace shame will rise as the markets on the rise. This is a logical and clear has wondered why assure p attacks? and because we in any markets depressed markets a the one low price can also achieve the Lord h! How is that? Imagine that you have a car equal to the market price of a because the $ 10.000 If the decline in the prices of cars and your car a few days after the price drop to $ 8000 How j that enabled the profit achieved by this? Simply will sell Syahruddin Tech now before declining price at $ 10.000 and put in Japanese this amount, ready to drop the price to $ 8000 and then they buy Here at this price. The result? The result that you and your car returned with the householder h $ 2000. It sold at $ 10.000 and then prepared purchased in the amount of 800 $ 0 any you prepared your car and with a profit of $ 2000! Does this mean that you you profit from the market downward T. Mama Kthaqiqk profit from the market upward. With one difference. You are in a rising market (ie, which rises when prices Yu the day after) deal to buy then began Anhitha sale. The car was purchased at a price of $ 10.000 and then sold it at 12000 $ achieved a profit. The downward trend in the market has begun to sell the deal and then terminated Ha buy. The car sold at a price of $ 10.000 and once again I bought Bass t $ 8000 and achieved profit. In the case of the market upward : the purchase price was less than the sale price. In the case of the market downward : the purchase price is also less than the sale price. But what is different is the arrangement of the deal. In another began to buy and sell terminated. In declining market started to sell and buy terminated. If not matter that the price increase or decrease of trading profit. But important that the expectations of the market is correct. If expected that the prices will rise will buy the product I. then when the rise actually sold. If expected that the prices will go down and will sell the product I. then when the decline actually purchased. In both cases, the purchase price will be lower than the sale price, To admit that the order to do the deal. It is interesting that in all financial markets called expression "bull market" Bullish market upward, "Bear market," Be arish to the market downward. In financial markets reflects Taurus Bull on strong demand , the forces that drive the purchase price to rise, reflecting the DIPP Bear on the forces of supply , a strong sales push prices to decline. When the demand for a significant and what is embracing R. traffickers willing to buy these goods will rise S. Er these goods quickly and said that the market is controlled by Alther The bulls who pay the price to rise. And when the supply of goods is large and is embracing R. traffickers willing to sell the product will Ass restitution quickly and said that the market is controlled by the Bears bears those who pay the price for the decline. The market any good words from the arena of conflict between bull If the Bears beat bull result was the rise if prices and superior Bears result was a decline for prices. What we have said is one of the most in the worst forms of expression financial s all, often this will be met in various amusing expression of markets. Let us take an example : the perception that there is some kind of wood per ton now equal 20 $ 00 but you and your education market has reached a conviction that e week after rising price of this timber to $ 3000 . How you can profit? Answer : the amount will pay $ 2000 and will buy tons of the wood industry Rather ratified If you increase the price per ton to $ 3000 he a what will sell you the new price and has thus achieved R. Baha equivalent to $ 1000 from the deal. (Sale price-purchase price). I began purchasing and terminated the sale. Example 2 : imagine that the same type of wood, which equals 20 per ton now but you $ 00 of your education market has reached a conviction that, after a period of time will be reduced and the price per ton up to $ 1000, How will profit? answer : this will sell ton in the market now is at $ 2000 and the Swiss Japanese hoarse in the $ 2000. when prices fall to $ 1000 Schtrih again b the price of $ 1000. And so is your wood, with profit $ 1000. May ask an important question. How can I sell wood, I do not pertaining? Fine. Stqetradh. When reached the conviction that the price of timber will decrease P seen time, going to a dealer in wood and request him to Ekarzk m tons n wood on the back after a week, for instance. If approved, which will take tons of wood and borrowed by the rabbit j market and sell at a price of $ 2000, now you have $ 2000 but you demands that the tons of wood to a the trader, who lend him. Well await some time and when the price per ton to fall also expected $ 1000 going to the market and buy tons of Khash b at $ 1000 and then back to the merchant, The remaining $ 1000 you net gain for you. What if the price of wood instead of declining? If Frdhan a price is $ 3000. Does this mean that you to be able to re-ton, which borrowed it should be bought at a price of $ 3000, but only goes to Dick 2 $ 000, if we have to add Japanese amount of $ 1000 to compensate for the mouse s to be able to re-wood, which borrowed. When will begin selling all I own is that the decline Alasa TR to be able to purchase at a price less than the sale price. As we said, the profit for Aithaqk only if the sale price is a of the purchase price, whichever arrangement and the deal is important that at the end of the deal the price of the product sold by the higher price of a Stritha it. This example shows you that profit can be achieved in the past Rising market and the market downward. The important thing is that you believe. In financial markets called LONG term begins when the a deal to buy The term 1.A when the deal b sale. You can consider that LONG mean 1.A mean buying and selling. Why do not we apply what we have learned now trading system the margin? know that there is no difference between the trades tend Balas and with the traditional trades and that the only system that you are in the margin the margin will be paid only a fraction of the value of the product T Sttager them. Back to the previous example of auto trading, and we will b the margin in the state of the market rising and the market downward. Stating that the agency will deal with the deduction amount margin $ 1000 for every car user decide traded , and remember that our expense to the company is $ 3000. In the case of the market rising to assume that the price of the car plates this now is $ 10.000 and we really Through Mtabattan a car market to come to the conviction that prices Orbiting AT rise in the coming period. reflect on whether to purchase a car in the hope that we can sell at a higher price later. Lott will buy one of the agency any car we Senster j car and the one where that Allot = car worth $ 10.000 . The agency cars deduct $ 1000 from the margin account users restored after the completion of the process, and remain in the account is $ 2000 margin, which is pw Sai amount that we have lost in this deal. Suppose that, after purchasing the car prices declined Els Jarat to $ 9000. if we have to sell the car at the current rate we would need to be leached met in 1000 from $ Jibna to finish the value of the car, which Ast Rinaha Agency at $ 10.000, Agency deducted this amount from the account to make up the mouse s. But we will not sell and wait. Yes. Supposing that prices rose rapidly and the price of Orbiting e $ 12000. If we have to sell the car at the current rate we will be able to fill by the full value of the car and $ 2000 will remain won two of a to deal. We will terminate the deal and will order the sale of car at $ 12000, the Agency will be deducted and the value of the car which Cta Banna, which is $ 10.000 and the remaining amount of $ 2000 gain Stadi Fe at our expense has yet to re-margin used. Our expense would have = $ 5000. So the profit achieved : profit = price-purchase price = 12000-10000 = 200 $ 0 in the state of the market downward to assume that the price of the car only n = $ 10.000, but we follow the market and we have to convinced that car prices will go down in the period deforestation à-vis. Reflect on sale at the current rate of car we bought Bass R. less later. Of course, we are currently Anmlk car, we will therefore having borrowed from the agency cars and Snamrha that immediately sold on the market at a price of $ 10.000 Sunday. The Agency will be deducted from the account and $ 1000 Cham u employee. Whether bought the car or Penaha We b Dana deal, we required to pay the full value of music Are in the case of purchase or return the vehicle in the case of Albee p. Remain in the account the amount of $ 2000 is available margin, We are now demanding that the car Aghtrdhanah a. If we assume after Piana car prices rose Alsiara T. and the price of the car = $ 11000. Meaning that if we decided to buy a car at the current age if necessary add $ 1000 of Jibna where we sold the car b amount $ 10.000 and the car now = $ 11000 in order to be able to return of the IAEA, we need to add $ 1000, this amount deducted from the account if the agency decided P Ula purchase. But we will not do. Wait. Yes, we have dropped the prices of cars and the price of the car = $ 8000. no, if we decided to buy a car now to celebrate them to Lock god will pay the amount of $ 8000 and the remaining $ 2000 to have the price We sold the car, which the gain to us. We will do this and will order that the agency buy a car, The company will be paid $ 8000 and $ 2000, will remain S. Add to account for their recovery after the margin Almstekh blood will account = $ 5000 so the profit that right channel : profit = price-purchase price = $ 10.000-$ 8000 = 2 $ 000 and thus believes that the trading margin Kalmtager e traditional manner can always make profit in the Rising market and downward The important thing is to ratify the expectation moved to disassociate.