Lesson 1 of 8⏱ 5 min · no maths

What is trading, really? (the bike example)

Click an underlined word to see what it means.

Imagine you buy a used bike for 100 €. A month later it's spring, everyone wants a bike, and you sell it for 150 €. You made 50 €.

That is trading. Nothing more, nothing less: buy low, sell high.

What actually happened?

  • There were few buyers in the , so the was low.
  • Later more buyers showed up, so the price went up.
  • You were in between and took the difference.

A does exactly this, only instead of bikes they buy and sell things like shares, currencies or futures on indices such as the Nasdaq. And instead of a month, a trade is sometimes open for only a few minutes.

What can go wrong?

What if the summer is rainy and nobody wants a bike? You can only sell it for 80 €. You lost 20 €.

Every trade has two outcomes: a profit or a loss. Nobody knows in advance which one. A good trader doesn't guess, they have a plan for how much they are willing to lose.

Why does the price move at all?

Because people decide every second whether to buy or sell. When there are more buyers, the price goes up. When there are more sellers, it goes down. Everything else in this academy (news, charts, zones) is just an explanation of why buyers and sellers behave the way they do.

✅ Quick check

You buy for 100 and sell for 90. What happened?

Education, not financial advice. Trading futures is risky and you can lose more than you put in.