Neither my son nor my daughter are very interested in, or care to learn, about trading or investing or how money works or basically anything that I am passionate about.. π€ππ€ Maybe other parents know what I mean. Anyway, I'm going to just pretend my Son, who is now a big boy (no really, he is the same size as me), IS into what I do and wants to learn about trading.. I'll also pretend he is still a small tike (around the age he was in the pic.. like 5-6 I think).
Ok, here goes. The first basic rule that I think most people just kinda figure out anyway..
Buy low, Sell high
image from pixabay.
The example I think of first is how one might buy a used car for $1,000 , and then sell that car later for $2,000. So, a PROFIT of $1,000 was pocketed. (selling price minus the original buy price) I think most people understand this example but for my son I might switch it to something HE would get.. say he bought a pokemon card for $1, then he turns around and SELLS that card to his other friend for $1.50 . If so, he made 50 cents profit! That's it.. Buy low, Sell high.
If that's all you choose to learn about trading.. that's fine. Many, many things are traded this way.. like stocks, real estate, etc.
and that's it.. what I consider the #1 rule of trading anything. Just one thing to learn at a time. That's a good approach me thinks. ππβοΈ
image from pixabay.