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. Tweet: JP Morgan gets stocks and bonds at wholesale prices, marks them up and sells them. https://ctt.ec/NyecY+ 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.

Learn to Trade Now

This content is intended to provide educational information only. This information should not be construed as individual or customized legal, tax, financial or investment services. As each individual's situation is unique, a qualified professional should be consulted before making legal, tax, financial and investment decisions. The educational information provided in this article does not comprise any course or a part of any course that may be used as an educational credit for any certification purpose and will not prepare any User to be accredited for any licenses in any industry and will not prepare any User to get a job. Reproduced by permission from OTAcademy.com click here for Terms of Use: https://www.otacademy.com/about/terms

Education feed

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

USD/JPY: No sign of a break out just yet

USD/JPY seems stuck in a sideways range. In historical terms, if there was this much uncertainty in the world the yen would be going through the roof.

USD/JPY News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

USD/JPY: No sign of a break out just yet

USD/JPY seems stuck in a sideways range. In historical terms, if there was this much uncertainty in the world the yen would be going through the roof.

USD/JPY News

Breaking: Gold breaks above $1,800, new mutli-year high, next levels eyed

Gold is trading above $1,800, highest since 2012, topping its previous high of $1,797 which now serves as support. The next levels to watch are $1,810 and $1,825. Further out, investors are eyeing $1,911 – the 2011 peak – and $2,000.

Read more

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology