How you make money trading and investing in the markets is no different than how you make money buying and selling anything in life and this basic concept never changes. The only difference between Costco and JP Morgan is what they sell, not how they operate or make and lose money. Costco buys the products at wholesale prices, marks them up and sells to us at retail prices. JP Morgan gets stocks and bonds at wholesale prices, marks them up and sells to us at retail prices.
It is really the exact same business model, just a different product. Having this mentality when short term trading for income or investing for long term wealth is the key to creating that pension or pay check from the financial markets.
The key for either group is to get the public to believe that the retail prices they are offering are a good deal so that the public will buy and pay those retail prices. Marketing plays a big role in this game for the Costco’s of the world, same with JPM. Let’s look at a trade I took from just the other day, 6/21/17.
Copper Income Trade: 6/21/17 – Profit: $4,675.50
Above is a screen shot of our Supply and Demand Grid and a trade I took in the Copper Futures market the other day. The Supply and Demand Grid is a service I produce 5 days a week for our members that gives them supply and demand levels for 35 of the major global markets for both short term income trading and long-term wealth. The levels represent where banks are buying and selling in the markets so our members can buy and sell there also. Our Supply and Demand grid told us there was significant supply in the yellow box area. Once the grid and our rules identify this, we now know where “retail” prices are, supply. With demand or “Wholesale” prices lower, I had a solid trading opportunity in front of me. All I needed next was for someone to believe that the retail price I identified was actually a wholesale price worth buying at. Eventually that happened and I sold short to a buyer that thought the market was worth buying at that price (circled area: short entry). Obviously, traders buying at the level I was selling at had mistaken retail prices for wholesale prices. Whether news or some report created this perception for the buyer is irrelevant. The only thing that matters is where wholesale and retail prices are in a market so we can buy and sell at those prices. Adding anything to this simple and straight forward concept is just noise that leads to losses.
Hope this was helpful, have a great day.
How you make money trading and investing in the markets is no different than how you make money buying and selling anything in life and this basic concept never changes. The only difference between Costco and JP Morgan is what they sell, not how they operate or make and lose money. Costco buys the products at wholesale prices, marks them up and sells to us at retail prices. JP Morgan gets stocks and bonds at wholesale prices, marks them up and sells to us at retail prices. It is really the exact same business model, just a different product. Having this mentality when short term trading for income or investing for long term wealth is the key to creating that pension or pay check from the financial markets.
The key for either group is to get the public to believe that the retail prices they are offering are a good deal so that the public will buy and pay those retail prices. Marketing plays a big role in this game for the Costco’s of the world, same with JPM. Let’s look at a trade I took from just the other day, 6/21/17.
Copper Income Trade: 6/21/17 – Profit: $4,675.50
Above is a screen shot of our Supply and Demand Grid and a trade I took in the Copper Futures market the other day. The Supply and Demand Grid is a service I produce 5 days a week for our members that gives them supply and demand levels for 35 of the major global markets for both short term income trading and long-term wealth. The levels represent where banks are buying and selling in the markets so our members can buy and sell there also. Our Supply and Demand grid told us there was significant supply in the yellow box area. Once the grid and our rules identify this, we now know where “retail” prices are, supply. With demand or “Wholesale” prices lower, I had a solid trading opportunity in front of me. All I needed next was for someone to believe that the retail price I identified was actually a wholesale price worth buying at. Eventually that happened and I sold short to a buyer that thought the market was worth buying at that price (circled area: short entry). Obviously, traders buying at the level I was selling at had mistaken retail prices for wholesale prices. Whether news or some report created this perception for the buyer is irrelevant. The only thing that matters is where wholesale and retail prices are in a market so we can buy and sell at those prices. Adding anything to this simple and straight forward concept is just noise that leads to losses.
Trading and investing, you see, is simply a transfer of money from those who don’t know what they are doing into the accounts of those who do. When you take action in the markets, make sure you know who you’re buying from and selling to. If you don’t know the difference between wholesale and retail prices, you can’t possibly know the difference between risk and opportunity.
Hope this was helpful, have a great day.
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