NasiWarrior
Newbie
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hypothetical conversation:
:| Trader 1: So how can money be made trading futures?
:smart: Trader 2: Simple... Buy low and sell high.
:| Trader 1: Great!.. I'll buy when it's cheap & sell sell when expensive.
:smart: Trader 2: Not so fast. Many times it will be cheap because that is the winning direction.
:| Trader 1: Hmmm. I want to be on the winning side so I'll sell when cheap too.
:smart: Trader 2: Be careful! The snap back to expensive could whack your stop very quickly.
:| Trader 1: and ?..
:smart: Trader 2: ...and then the contract is trading on the rich side because of all the buying pressure.
:| Trader 1: That's when I'll want to be long. I see how this "business" works now. All is clear. Fantastic!.. Tell me; When would be the right time to buy?
:smart: Trader 2: You just missed it. It was when you sold short :cheesy:
:| Trader 1:
:| Trader 1: So how can money be made trading futures?
:smart: Trader 2: Simple... Buy low and sell high.
:| Trader 1: Great!.. I'll buy when it's cheap & sell sell when expensive.
:smart: Trader 2: Not so fast. Many times it will be cheap because that is the winning direction.
:| Trader 1: Hmmm. I want to be on the winning side so I'll sell when cheap too.
:smart: Trader 2: Be careful! The snap back to expensive could whack your stop very quickly.
:| Trader 1: and ?..
:smart: Trader 2: ...and then the contract is trading on the rich side because of all the buying pressure.
:| Trader 1: That's when I'll want to be long. I see how this "business" works now. All is clear. Fantastic!.. Tell me; When would be the right time to buy?
:smart: Trader 2: You just missed it. It was when you sold short :cheesy:
:| Trader 1:
