It's easy question to answer ..
When you trade a commodity, the profit is achieved when you buy this item at one price and sell at a higher price.
We can not achieve a profit only if the price of selling us a product greater than our purchase price.
On the basis of simple equation: Profit = Price - price
Buy at one price and sell at a higher price .. Thus achieved profit.
Must before we buy a commodity for trading to expect the utmost to make sure that the price will rise.
If we confirm that the price of a commodity will rise after a period of time, we buy and wait until the price actually rises and then sell at the high price.
So we can not make profits only in emerging markets, any market with high prices of days behind on.
We control the movement of prices and when we expect that the price of a commodity has become a rising any day they rise behind the day, we buy and then wait until the price rises actually we Venabieha get profit.
But what if we expected that the price of a commodity will decline and will not rise?
What if we had expected that the prices of cars in the coming days will be reduced and will not go up?
Of course it would be foolish to buy a car now, we will find that the price will drop after days if بعناها we will suffer from the loss.
If the price of a 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 for we will find that the price has become after days $ 8000 If بعناها this price we will suffer from the loss of $ 2,000.
If .. We can not begin to buy only when they expect that prices will rise and that the rise of markets.
This is a question the obvious was wondering why emphasize it?
That's because we in the bear markets of any markets where prices are low we can also achieve profit!!
How so?
Imagine that you have a car equal to the market price now $ 10,000
If car prices in decline and that the car after a few days the price will drop to $ 8,000, how can that be profitable this?
Simply will sell your car now and before dropping priced at $ 10,000 and put it in your pocket this amount, would wait until the price drops to $ 8,000 and 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 the amount of $ 8000 ie you prepared your car with a profit of $ 2000 ..!!
This means that you are able to make a profit from the market completely bearish Kthakikk to profit from rising market.
With one difference ..
You're bullish on the market (ie, when prices rise day after day) started the transaction of purchase and then completed the sale.
I bought the car at $ 10,000 and then sold it at $ 12,000 and made a profit.
In the bearish market has begun the deal of selling then completed the purchase.
I sold the car at $ 10,000 and bought again at $ 8000 and achieved a profit.
In the case of emerging market: purchase price was less than the selling price.
In the case of bearish market: the purchase price is also less than the selling price.
But who is to arrange the deal differed.
In the rising began buying and selling finished, and in the bearish market started selling and finished buying.
If it does not matter that prices are high or low to make a profit trading.
It is important to have your expectations of the market is correct.
If prices expected to rise will buy the item first and then sell it when actually rise.
If you suspect that prices will fall item will sell first and then buy it when it goes down really.
In both cases, purchase price will be less than the selling price, not only different order to do the deal.
Interestingly, that in all financial markets is called the term "bull market" Bullish market bullish and "Market Bear" Bearish market downward, in the financial markets reflects the bull Bull for the forces of demand, strong buying that pay rates are high and reflects Bear Bear for the forces of supply, sales force that push prices lower.
When the demand for a commodity big and have a lot of traders unwilling to buy this item price of this commodity will rise quickly and said that the market is controlled by bulls bulls who pay rates are high.
And when you have on display a large commodity and have a lot of traders willing to sell this item will drop the price quickly and said that the market is controlled by bears bears who pay rates are low.
And any commodity market is an arena for conflict between bulls and bears, if surpassed bulls result was higher prices and if Bears outperformed the result was lower prices.
Is what we have one of the most popular forms of expression in all financial markets, and often you will meet this expression is amusing in different markets.
Take for example: imagine that there is some kind of timber per ton of it is worth now $ 2,000, but you and your study of the market reached the conviction that after a week will increase the price per ton of wood to $ 3,000. How can you make a profit?
The answer: you will pay the amount of $ 2,000 and buy a ton of this wood and wait if ratified Bet will increase the price per ton to $ 3,000 then sell what you have at the new price and has thus achieved a profit equal to $ 1,000 from the deal. (Sale price - purchase price).
I started to buy and finish the sale.
Example 2: imagine that the same type of wood, which is equal to a ton of it now $ 2,000, but you from your studies of the market have come to the conclusion that after a period of time will decrease the price per ton and up to $ 1,000, how would profit?
The answer: will sell the ton in the market is now at $ 2000 and will be $ 2,000 in your pocket, when it drops the price per ton to $ 1,000 will buy again at $ 1,000. And so it is up to you in Wood and his profit of $ 1,000.
You might ask an important question ..
How can I sell wood and I do not I own?
Well .. Stguetrdah ..
When reached to the conclusion that the price of wood will decline after a period of time, will go to a lumber dealers and ask him to lend tons of wood to bring it back to him after a week, for example ..
If approved would take tons of wood borrowed and run to the market and sell at the price of $ 2000, now you have $ 2,000 but demands to return tons of wood to the merchant who is giving it to me.
Well wait some time and when it drops the price per ton to $ 1,000 as predicted would go to the market and buy tons of wood amount of $ 1,000 and then return it to the dealer, and left you $ 1,000 net gain for you.
What if the price of wood rather than to fall?
If we assume that the price per ton was $ 3,000, meaning that you be able to re-ton borrowed must be bought at the price of $ 3000, but does not have only $ 2000, if you must add the pocket amount of $ 1000 to compensate for the difference to be able to re-Wood borrowed.
When you start selling will be all I have is that prices fall so you can purchase at a lower price than the selling price.
As we said that profit does not take place only if the sale price is higher than the purchase price, but does not matter the order of the deal is important is that at the end of the transaction price to be sold by lot higher than the price at which you bought it.
From this example, you will see that the profit can be achieved in the market bullish and bearish market. The important thing is to believe your expectations.
In financial markets called LONG term when the deal begins to buy The term SHORT when the deal begins to sell.
You can think of that LONG means buying and SHORT means selling.
Why do not we apply what we have learned now on margin trading system?
You know that there is no difference between that trade commodity in the traditional manner and that the margin trading system only you in the margin system will not only pay a fraction of the value of the item which Sttajer.
To go back to the example of the previous car and we'll trading margin in the case of emerging market and the bearish market.
Remember that the agency that we are dealing with will deduct the amount of $ 1,000 margin for every user decide traded car, and remember that our account at the company is $ 3,000.
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 we came to the conclusion that car prices will rise in the coming period, we will think if buying a car in the hope that we can sell at a higher price later.
Will buy 1 lot of cars any agency We will buy one car where that croaker = car worth $ 10,000.
Agency will deduct $ 1,000 cars from our margin account user recovers after the completion of the process, and will remain at our expense $ 2,000, a margin which is the maximum amount you can lose in this deal.
Suppose that after our purchase of the car dropped car prices to 9000 $, if we sell the car at the current price we will need to add $ 1000 from our pocket to complete the value of the car, which we purchased from the agency at $ 10,000, will be deducted Agency this amount from our account to make up the difference.
But we will not sell and wait ..
Yes .. Suppose that prices rose quickly and became the price of the car $ 12,000.
If we sell the car at the current price will be able to pay the full value of the car and will remain $ 2,000 they won from the deal.
Close the deal and we will decide Snamr Agency to sell the car at $ 12,000, the agency will implement it and deduct the value of the car by asking us a $ 10,000 and the remaining amount of $ 2,000 gain will it add to our yet have the user to restore the margin.
Will be our expense has = $ 5,000.
Thus, the profit that we have achieved:
Profit = Price - price
= 12000 - 10000 = $ 2,000
In the case of bearish market
Suppose now that the price of the car = $ 10,000 but our follow-up of the market we came to the conclusion that car prices will drop in the coming period.
We will consider selling the current price for the car we purchased at a lower price later.
Of course, we have very car now, so we'll Bagtradha and cars and Snamrha agency should immediately sell in the market price of $ 10,000 today.
Agency will implement it and will be deducted from our account user $ 1,000 margin. Whether we bought the car or بعناها we started and we are demanding the deal to pay the full value of the car in case of purchase or return the vehicle in the case of a sale.
Remain in our account the amount of $ 2,000 in margin available, and we are now demanding re car Aqtrdhanaha.
If we assume after selling us car car prices rose and the price the car = $ 11,000.
This means that if we decided to buy a car at the current price + Children add $ 1000 of our pocket, where we sold the car at $ 10,000 USD and the car now = $ 11,000 so that we can return to the Agency we need to add $ 1000, will be deducted this amount from our account at the agency if we decided to actually purchase.
But we will not do .. Wait ..
Yes car prices have fallen and the price 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 $ 8,000 and still have $ 2,000 of the price that we sold the car as a profit for us.
We will do this and agency Snamr that you buy a car, the company will implement it and will pay $ 8000 and will remain $ 2,000 will be added to our recovery has used margin and will become our expense = $ 5,000
Thus, the profit that we have achieved:
Profit = Price - price
= $ 10,000 - $ 8,000 = $ 2,000
So you see that in margin Kalmtajerh trading in the traditional manner can always make a profit in the market bullish and bearish and the important thing is to ratify our expectations.
When you trade a commodity, the profit is achieved when you buy this item at one price and sell at a higher price.
We can not achieve a profit only if the price of selling us a product greater than our purchase price.
On the basis of simple equation: Profit = Price - price
Buy at one price and sell at a higher price .. Thus achieved profit.
Must before we buy a commodity for trading to expect the utmost to make sure that the price will rise.
If we confirm that the price of a commodity will rise after a period of time, we buy and wait until the price actually rises and then sell at the high price.
So we can not make profits only in emerging markets, any market with high prices of days behind on.
We control the movement of prices and when we expect that the price of a commodity has become a rising any day they rise behind the day, we buy and then wait until the price rises actually we Venabieha get profit.
But what if we expected that the price of a commodity will decline and will not rise?
What if we had expected that the prices of cars in the coming days will be reduced and will not go up?
Of course it would be foolish to buy a car now, we will find that the price will drop after days if بعناها we will suffer from the loss.
If the price of a 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 for we will find that the price has become after days $ 8000 If بعناها this price we will suffer from the loss of $ 2,000.
If .. We can not begin to buy only when they expect that prices will rise and that the rise of markets.
This is a question the obvious was wondering why emphasize it?
That's because we in the bear markets of any markets where prices are low we can also achieve profit!!
How so?
Imagine that you have a car equal to the market price now $ 10,000
If car prices in decline and that the car after a few days the price will drop to $ 8,000, how can that be profitable this?
Simply will sell your car now and before dropping priced at $ 10,000 and put it in your pocket this amount, would wait until the price drops to $ 8,000 and 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 the amount of $ 8000 ie you prepared your car with a profit of $ 2000 ..!!
This means that you are able to make a profit from the market completely bearish Kthakikk to profit from rising market.
With one difference ..
You're bullish on the market (ie, when prices rise day after day) started the transaction of purchase and then completed the sale.
I bought the car at $ 10,000 and then sold it at $ 12,000 and made a profit.
In the bearish market has begun the deal of selling then completed the purchase.
I sold the car at $ 10,000 and bought again at $ 8000 and achieved a profit.
In the case of emerging market: purchase price was less than the selling price.
In the case of bearish market: the purchase price is also less than the selling price.
But who is to arrange the deal differed.
In the rising began buying and selling finished, and in the bearish market started selling and finished buying.
If it does not matter that prices are high or low to make a profit trading.
It is important to have your expectations of the market is correct.
If prices expected to rise will buy the item first and then sell it when actually rise.
If you suspect that prices will fall item will sell first and then buy it when it goes down really.
In both cases, purchase price will be less than the selling price, not only different order to do the deal.
Interestingly, that in all financial markets is called the term "bull market" Bullish market bullish and "Market Bear" Bearish market downward, in the financial markets reflects the bull Bull for the forces of demand, strong buying that pay rates are high and reflects Bear Bear for the forces of supply, sales force that push prices lower.
When the demand for a commodity big and have a lot of traders unwilling to buy this item price of this commodity will rise quickly and said that the market is controlled by bulls bulls who pay rates are high.
And when you have on display a large commodity and have a lot of traders willing to sell this item will drop the price quickly and said that the market is controlled by bears bears who pay rates are low.
And any commodity market is an arena for conflict between bulls and bears, if surpassed bulls result was higher prices and if Bears outperformed the result was lower prices.
Is what we have one of the most popular forms of expression in all financial markets, and often you will meet this expression is amusing in different markets.
Take for example: imagine that there is some kind of timber per ton of it is worth now $ 2,000, but you and your study of the market reached the conviction that after a week will increase the price per ton of wood to $ 3,000. How can you make a profit?
The answer: you will pay the amount of $ 2,000 and buy a ton of this wood and wait if ratified Bet will increase the price per ton to $ 3,000 then sell what you have at the new price and has thus achieved a profit equal to $ 1,000 from the deal. (Sale price - purchase price).
I started to buy and finish the sale.
Example 2: imagine that the same type of wood, which is equal to a ton of it now $ 2,000, but you from your studies of the market have come to the conclusion that after a period of time will decrease the price per ton and up to $ 1,000, how would profit?
The answer: will sell the ton in the market is now at $ 2000 and will be $ 2,000 in your pocket, when it drops the price per ton to $ 1,000 will buy again at $ 1,000. And so it is up to you in Wood and his profit of $ 1,000.
You might ask an important question ..
How can I sell wood and I do not I own?
Well .. Stguetrdah ..
When reached to the conclusion that the price of wood will decline after a period of time, will go to a lumber dealers and ask him to lend tons of wood to bring it back to him after a week, for example ..
If approved would take tons of wood borrowed and run to the market and sell at the price of $ 2000, now you have $ 2,000 but demands to return tons of wood to the merchant who is giving it to me.
Well wait some time and when it drops the price per ton to $ 1,000 as predicted would go to the market and buy tons of wood amount of $ 1,000 and then return it to the dealer, and left you $ 1,000 net gain for you.
What if the price of wood rather than to fall?
If we assume that the price per ton was $ 3,000, meaning that you be able to re-ton borrowed must be bought at the price of $ 3000, but does not have only $ 2000, if you must add the pocket amount of $ 1000 to compensate for the difference to be able to re-Wood borrowed.
When you start selling will be all I have is that prices fall so you can purchase at a lower price than the selling price.
As we said that profit does not take place only if the sale price is higher than the purchase price, but does not matter the order of the deal is important is that at the end of the transaction price to be sold by lot higher than the price at which you bought it.
From this example, you will see that the profit can be achieved in the market bullish and bearish market. The important thing is to believe your expectations.
In financial markets called LONG term when the deal begins to buy The term SHORT when the deal begins to sell.
You can think of that LONG means buying and SHORT means selling.
Why do not we apply what we have learned now on margin trading system?
You know that there is no difference between that trade commodity in the traditional manner and that the margin trading system only you in the margin system will not only pay a fraction of the value of the item which Sttajer.
To go back to the example of the previous car and we'll trading margin in the case of emerging market and the bearish market.
Remember that the agency that we are dealing with will deduct the amount of $ 1,000 margin for every user decide traded car, and remember that our account at the company is $ 3,000.
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 we came to the conclusion that car prices will rise in the coming period, we will think if buying a car in the hope that we can sell at a higher price later.
Will buy 1 lot of cars any agency We will buy one car where that croaker = car worth $ 10,000.
Agency will deduct $ 1,000 cars from our margin account user recovers after the completion of the process, and will remain at our expense $ 2,000, a margin which is the maximum amount you can lose in this deal.
Suppose that after our purchase of the car dropped car prices to 9000 $, if we sell the car at the current price we will need to add $ 1000 from our pocket to complete the value of the car, which we purchased from the agency at $ 10,000, will be deducted Agency this amount from our account to make up the difference.
But we will not sell and wait ..
Yes .. Suppose that prices rose quickly and became the price of the car $ 12,000.
If we sell the car at the current price will be able to pay the full value of the car and will remain $ 2,000 they won from the deal.
Close the deal and we will decide Snamr Agency to sell the car at $ 12,000, the agency will implement it and deduct the value of the car by asking us a $ 10,000 and the remaining amount of $ 2,000 gain will it add to our yet have the user to restore the margin.
Will be our expense has = $ 5,000.
Thus, the profit that we have achieved:
Profit = Price - price
= 12000 - 10000 = $ 2,000
In the case of bearish market
Suppose now that the price of the car = $ 10,000 but our follow-up of the market we came to the conclusion that car prices will drop in the coming period.
We will consider selling the current price for the car we purchased at a lower price later.
Of course, we have very car now, so we'll Bagtradha and cars and Snamrha agency should immediately sell in the market price of $ 10,000 today.
Agency will implement it and will be deducted from our account user $ 1,000 margin. Whether we bought the car or بعناها we started and we are demanding the deal to pay the full value of the car in case of purchase or return the vehicle in the case of a sale.
Remain in our account the amount of $ 2,000 in margin available, and we are now demanding re car Aqtrdhanaha.
If we assume after selling us car car prices rose and the price the car = $ 11,000.
This means that if we decided to buy a car at the current price + Children add $ 1000 of our pocket, where we sold the car at $ 10,000 USD and the car now = $ 11,000 so that we can return to the Agency we need to add $ 1000, will be deducted this amount from our account at the agency if we decided to actually purchase.
But we will not do .. Wait ..
Yes car prices have fallen and the price 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 $ 8,000 and still have $ 2,000 of the price that we sold the car as a profit for us.
We will do this and agency Snamr that you buy a car, the company will implement it and will pay $ 8000 and will remain $ 2,000 will be added to our recovery has used margin and will become our expense = $ 5,000
Thus, the profit that we have achieved:
Profit = Price - price
= $ 10,000 - $ 8,000 = $ 2,000
So you see that in margin Kalmtajerh trading in the traditional manner can always make a profit in the market bullish and bearish and the important thing is to ratify our expectations.
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