What Does BUY Mean?
Why “buy” is more than just pressing a green button
▸ Story
You're at a bus stop.
A ticket costs £1 today. Someone says tomorrow it might cost £2.
If you buy today for £1 and sell tomorrow for £2, you make £1 profit.
That's what BUY means in trading: you buy when you think price will go up. You plan to sell later at a higher price. The difference is your profit or loss.
On a chart, BUY means: “I think this line will go up from here.”
If it does, you make money. If it doesn't, you lose—but you keep that loss small.
★ Key idea
BUY = “I believe this price will rise from here, and I'm willing to risk a small amount on that belief.”
✦ Quick quiz
1. Why did we want to buy the ticket at £1?
2. If the ticket price went down to £0.50 instead, what happened to our idea?
3. After pressing BUY, which direction do we hope the price goes?
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Wild and Wise
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