What Is Trading?
From sweet shop to screen—how trading really works
▸ Story
Trading is like running a tiny sweet shop.
You buy a box of sweets for £5. You sell them for £8. You keep £3 extra—that's profit.
Another day: you buy sweets for £5. You only sell them for £4. You lose £1—that's loss.
Trading is the same idea, but instead of sweets, you trade prices on a screen.
If you think price will go up, you press BUY. If you think price will go down, you press SELL.
Trading is not magic or gambling. It's using rules to decide what to do with price.
★ Key idea
Trading = using rules to decide if price might rise or fall, and managing what happens next.
✦ Quick quiz
1. When did we make profit in the sweet shop story?
2. When did we have a loss?
3. Trading is most like:
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Wild and Wise
A friendly book for building confidence and smart thinking, one page at a time.