Imagine you're in a marketplace where you can buy items wholesale (at a lower price) and then sell them retail (at a higher price) to make a profit. For stock trading, think of buying wholesale as buying stocks when their prices are low and selling retail as selling them when their prices are high.
Here's the breakdown:
- Wholesale prices for the stock of company
KMY
range from $55 to $67 per share.
- Retail prices, which is what you aim to sell the stock for, range from $90 to $100 per share.
The strategy is simple:
- Buy the stock when it's priced low (in the $55-$67 range) and sell it when it's priced high (in the $90-$100 range).
- We don't buy when prices are too high because it's not profitable.
We categorize the price ranges into zones:
- The "orange zone" is when the stock is priced low, making it a good time to buy.
- The "blue zone" is when the stock is still priced reasonably, neither too low nor too high.
- We avoid buying in the high-priced zone because it's not a good deal for us.
Now, let's consider if you were to sell some of the
KMY
stock today. To maximize profit:
- You would have ideally bought the stock when it was in the orange zone, the lowest price range.
- Selling it now, when it's in the retail price range of $90-$100, would yield the highest profit margin.
So, the key is to buy low and sell high. Timing your purchases and sales based on these price zones can help you make the most profit when trading stocks like $KMY.
Here's the breakdown:
- Wholesale prices for the stock of company
KMY
range from $55 to $67 per share. - Retail prices, which is what you aim to sell the stock for, range from $90 to $100 per share.
The strategy is simple:
- Buy the stock when it's priced low (in the $55-$67 range) and sell it when it's priced high (in the $90-$100 range).
- We don't buy when prices are too high because it's not profitable.
We categorize the price ranges into zones:
- The "orange zone" is when the stock is priced low, making it a good time to buy.
- The "blue zone" is when the stock is still priced reasonably, neither too low nor too high.
- We avoid buying in the high-priced zone because it's not a good deal for us.
Now, let's consider if you were to sell some of the
KMY
stock today. To maximize profit: - You would have ideally bought the stock when it was in the orange zone, the lowest price range.
- Selling it now, when it's in the retail price range of $90-$100, would yield the highest profit margin.
So, the key is to buy low and sell high. Timing your purchases and sales based on these price zones can help you make the most profit when trading stocks like $KMY.