Baby Blue Trading Technique for the E-Minis by Dave Wright

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Everyone is familiar with the term “trade”. Most of us have changed in our daily lives, although we may not even know we have. Essentially, all you buy in a store is exchanging money for the goods you want.

At tradimo you will learn how to trade online with financial markets, but what exactly is online trading? This article will give you an understanding of how you can define trading and how online trading works.

Also Get Baby Blue Trading Technique for the E-Minis by Dave Wright on Traderknow.com

The principles of trade

The term trade means exchanging one item for another. In financial markets, either buy something for one price and sell it again for another, hopefully at a higher price to make a profit, or sell something for one price and buy it again for another, hopefully a lower price to get a gain.

The term “trade” simply means “to exchange one item for another”. We generally understand that this is exchanging goods for money or, in other words, simply buying something.

When we talk about trading in the financial markets, it is the same principle. Think of someone who trades stocks. What they are really doing is buying shares (or a small part) of a company. If the value of those shares increases, then they make money by selling them again at a higher price. This is commerce. You buy something for one price and sell it again for another, hopefully at a higher price, thus making a profit and vice versa.

Money for goods

But why would the value of the shares go up? The answer is simple: value changes due to supply and demand: the more demand there is for something, the more people are willing to pay for it.