How to Tell profit in trading 1111?

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It is a question easy to answer ..
When you trade as a commodity, the profit achieved when you buy this item at one price and sell at a higher price.
Ie we can not make a profit only if the price of a commodity to sell us more than the price of our purchase them.
On the basis of simple equation:
Profit = sale price - purchase price.

We buy at one price and sell at a higher price .. So there is profit.

Must, before we buy a commodity for trading to expect the most 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 rises really high price and then sell them.
So we can not achieve the profit only in emerging markets, ie markets with high prices behind the day by day.
We control the movement of prices and when we expect that the price of a commodity that is, they are rising up behind the days and days, we buy and then wait until the price rises already Venabieha and get 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 fall in the coming days and will not rise?

Of course it would be foolish to buy a car now, we will find that the price will fall if we sold a few days after going to suffer from the loss.

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

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

This question has a logical and clear wonder why stress it? This is 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 price in the market is now $ 10,000
If the fall in car prices in your car and after a few days the price will drop to $ 8000 so how can it be profitable?
Will simply sell your car now, before the price drop at $ 10,000 and put in your pocket this amount, wait until the price falls to 8000 dollars, and you buy at this price.
What result?
The result is that your car returned to you along with the profit of $ 2000.
I sold the amount of $ 10,000, 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 falling completely Kthakikk market to profit from the emerging market.

With one difference ..

You are in the emerging market (ie, where prices are rising by the day) began to buy and then I finished the deal to sell.
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 and then I finished buying.
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 purchase price is also less than the selling price.

But I disagree is the arrangement of the deal.

In the rising began buying and selling finished, and in the falling market and began selling finished buying.
If it does not matter that the prices are high or low to make a profit trading.

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

If the forecast that prices will rise first and then buy the item will sell when it rises really.
If the forecast that prices will fall first and then sell the item when you buy really low.
In both cases the purchase price will be less than the sale price, not different but the order to do the deal.

It is interesting that in all financial markets, called the term "market bull" Bullish market rising and the "market of the bear" Bearish market downward, in the financial markets reflects the bull Bull for the forces of demand, power purchases are pushing prices up and express Bear Bear for the forces of supply, sales force driving prices lower.

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

The market of any commodity is an arena for conflict between the bulls and the bears beat the bulls if the result was higher prices and if the Bears beat the result was lower prices.
What we have is a form of expression in the months all financial markets, and often will be met with this expression is interesting in different markets.

Let us take an example (Example 1): the perception that there is a kind of wood per ton of it now is equal to $ 2000 but you and your study of the market came to believe that after a week will increase the price per ton of wood to $ 3,000. How can you make a profit?

Answer: You will pay $ 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 new price and has thus made a profit equal to $ 1000 from this 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 is $ 2000 but you from your studies of the market came to believe that after a period of time will decrease and the price per ton up to $ 1000, how will profit?
Answer: This will sell a ton in the market now at $ 2000 and will be in your pocket $ 2,000, when the lower price per ton to $ 1000 will buy again at $ 1000. Thus, the wood is up to you and with him won the $ 1000.
You might ask an important question ..
How do I sell wood and I do not I own? Well .. Stguetrdah ..

When the conclusion is that the price of wood will drop 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 it and ran to the market and sells it at $ 2,000, now you have $ 2000 but the demands to return to the tons of wood merchant who Okarzk him.

Well, wait some time and when the price drops to $ 1000 per ton as I expected would go to the market and buy tons of wood, $ 1,000 and then return it to the dealer, leaving you $ 1000 net the gain for you.
What if the price of wood rather than fall?

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 $ 2,000, if you need to add of your pocket $ 1000 to compensate for the difference to be able to re-wood, which borrowed.

When sales start will be all I have is that prices fall so you can purchase at a price below the selling price.

As we have said that the profit does not take place unless the sale price is higher than the purchase price, and Any arrangements for this deal is important is that in the end of the deal is the price you sold the commodity is higher than the price you bought it.
From this example, you will see that the profit can be achieved in the emerging market and the market downward. 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 they start to sell the deal.

You can think of that purchase and that means LONG SHORT means the sale.

Why do not we apply what we have learned is now trading on a margin?

Know that there is no difference between a commodity to trade in the traditional manner and that trading on a margin of only you are in the margin system would not only pay a fraction of the value of the item which Sttajer.
To go back to the example of the former car and we'll trading margin in the state of the market rising and the falling market.
Remember that we are dealing with the agency will deduct the amount of $ 1000 margin for each user to decide to trade in a car, remember that our account with 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 would rise in the coming period, we will consider whether to 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. The agency will deduct $ 1000 car from our user retrieves the margin after the completion of the process, and will remain in our account is $ 2,000 available margin is the maximum amount that can be lost in this deal.

Suppose that after our purchase of the car down car prices to $ 9000, if we sell the car at the current rate we will need to add $ 1000 of our pocket to complete the value of the car which we purchased from the agency at $ 10,000, deducted the agency of this amount from our account to compensate for the difference. But we will not sell and we will wait ..

Yes .. Suppose that prices rose rapidly and became a $ 12,000 price of the car.
If we sell the car at the current price we will pay the full value of the car will remain $ 2,000 and won two of the deal.

We will decide on the deal and end the Snamr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car are being urged by a $ 10,000 and the remaining amount of $ 2000 as profit will it add to our account has yet to re-margin the user.
Our will has = $ 5,000.
Thus, the profit that we have achieved: profit = sale price - purchase price => 12,000 to 10,000 = $ 2,000

In 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 fall in the coming period.

We will consider the sale of a car at the current rate of re-purchase them at a lower price later. We are, of course we do not have a car now, so we'll Bagtradha of agency Snamrha cars and sell them immediately in the market price of the current $ 10,000.
Agency will implement it and will be deducted from our account $ 1000 margin user. Whether we sold or bought a car, we started a deal and we are required 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 after selling us the car prices cars and the price of car = $ 11,000.
This means that if we decided to buy a car at the current We will hold the added $ 1000 of our pocket, 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, car prices have fallen and the price of car = 8000 $, if any, we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8000 and still have $ 2,000 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 user and the margin will be our expense = $ 5000
Thus, the profit that we have achieved: profit = sale price - purchase price => $ 10,000 $ --8,000 = $ 2,000

Thus you see that in the trading margin in the traditional manner Kalmtajerh can always make a profit in bullish and bearish market and the important thing is to believe our expectations.