Profits in financial markets
It aims to achieve the fundamental goal of every trader in the financial sector.
The basic, simple idea is to buy low and sell high, profiting from the difference.
But this isn't limited to specific price points; it can be fully realized in hacking if we understand the basics.
For all the fundamentals of profit
"Profit = Selling Price - Buying Price"
In a bull market: The trade begins by buying low and then selling higher.
In a bear market: The trade begins by selling and then not buying at a lower price.
Therefore, the market direction isn't as important as the accuracy of your prediction.
Market vs. Market
Bull market: When there is demand for certain patterns, they agree to accept higher prices.
Bear market: When there is supply and demand to sell, prices fluctuate depending on who is pushing down on options.
Thus, the market is viewed as a battleground between buying and selling forces.
Other Examples
- Example 1: Marketing in the Market
Let's assume the price of a ton of iron is currently $2,000, and you expect it to rise to $3,000 within a week.
Buy a ton now at $2,000.
Sell it later at $3,000.
Choose a net option to defend $1,000.
- Example 2: Profiting in a Bear Market
Let's assume the price of a ton of iron is currently $2,000, and you expect it to fall to $1,000.
Sell the ton you currently own at $2,000.
After buying at that price, buy the same ton at $1,000.
You are able to make a net option to defend $1,000.
