Buy Low/Sell High, or Vice Versa

III. Secrets of Trading: Section 1 of 6

Now, what is the secret to trading? Buy low, sell high, is the answer you'll get from a savvy veteran. If you buy something at one price and sell it at a higher price, you make money. If you buy something at one price and sell it at a lower price, you lose money. But remember, with futures and options you can buy and sell in whatever order you want; it's just as easy to "sell high, buy back low," as it is to buy low, then sell high. If you think prices are going up, establish a "long" (buy) position, and if you think prices are going down, initiate a "short" (sell) position.