How to Make a Profit from Trading
Buy low, sell high.
For example, currently, 1 US dollar is worth 36 baht, but we anticipate that in the future, the US dollar may increase in value to 40 baht. So, we buy dollars at 36 baht and sell them later at 40 baht. This means we make a profit of 4 baht per dollar. In simple terms, it’s about buying low and selling high. We analyze charts or market trends to predict how the market will move in the future.
Sell high, buy low.
In the market, we can also sell high and buy low, such as when we anticipate that the value of the US dollar might decrease in the future.
For example, currently, 1 US dollar is worth 36 baht, but we anticipate that in the future, the US dollar’s value might drop to 30 baht. So, we sell the dollar when it’s at 36 baht and buy it back when it falls to 30 baht. This means we make a profit of 6 baht per dollar. In simple terms, it’s selling high and buying low.
If you don’t have any, where will you get it to sell?
Many people may wonder how we can sell if we don’t actually own that currency. The key to trading is having a broker. The broker acts as an intermediary, handling transactions for us, similar to how a bank transfers money from one country to another. In this market, brokers offer trading through contracts: they sell to us first, and then we buy back from the broker later when the price drops. In summary, in the market, we can profit both ways — buying low and selling high, and selling high and buying low.
