Simply put, Profit/Loss Chart (PLC) is the easiest and quickest way to understand your strategy to make profit. It can be used in any kind of trading, but it’s commonly use to illustrate option trading strategy (which can be complex, but then become easier after seeing the PLC). Just with simple glance, you can see from PLC: your break even point, where is your maximum profit, when you start losing money, when you start making money. Or in other word, what need to happen with the price for you to make profit.
In printing/word processor, you can see the similar resemblances in understanding “margin”. Margin is a vacant space left as a ‘border’ between the edge of the paper and the content. That is also somehow similar to “margin” in trading, it’s a space between the end of your account and the real profit.
Everybody wants to profit from the market. And there is only one and only secret in order to consistently profiting from the market. It’s simple and most of people know about it, but only a few really consistently doing it. The rule / secret is :
BLSH (BUY LOW SELL HIGH)
Yeah, right ! Of course we [...]
A stock trader can make profit basically by buying a company share at certain price and sell it at higher price. The problem is that no body can actually have the power to direct the price movement (go up or go down) except the market mechanism itself. So, what determine this ?
Option trading is very popular and profitable. But how actually a trader can produce profits with option trading? Find out how here….
what really move the price up and down ?
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