What Does SELL Mean?
How selling can be a plan, not a panic
▸ Story
Your child has a toy they don't play with anymore.
Right now, people might pay £10 for it. A new version is coming soon, and you think the old one will drop to £5.
You sell the toy now for £10. Later, if you really miss it, you could buy another for £5. You'd keep £5 profit.
That's SELL in trading: you sell when you think price will go down. You plan to buy back later at a lower price. The difference is your profit.
On a chart, SELL means: “I think this line will go down from here.”
If it does, you make money. If it goes up instead, you lose—but you keep that loss small.
★ Key idea
SELL = “I believe this price will fall from here, and I'm willing to risk a small amount on that belief.”
✦ Quick quiz
1. Why did we sell the toy now instead of later?
2. If the toy price went up to £15 instead of down, what happened to our plan?
3. After pressing SELL, which direction do we hope the price goes?
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Wild and Wise
A friendly book for building confidence and smart thinking, one page at a time.