Click here >> Lesson 11 Everyday We Trade in the “Market”

Every day you go out into the big wide world, you will see trading. 

And it’s particularly obvious if you go into a fruit and veg or other type of open market. 

There are buyers and sellers, there are introducers and brokers, there are back-handed deals, and over the counter opportunities. There is the equivalent of market makers, there are price-fixing tricks and monopolies, there are the security firms that police the markets, aka the regulators and the list go on.

Some shops are very clear and fixed in their pricing, whilst others have no visible prices and are open to negotiation and bartering. Prices vary and fluctuate according to demand and supply just like in the stock market, as does liquidity and volume.

When stock supplies are low and demand is high, shopkeepers push up prices but when there is oversupply, prices will fall. It’s the same with stocks trading on the London Stock Exchange. On certain days or times of the day, price spread will alter accordingly.

There are just so many parallels that it’s hard not to see shopping as anything other than trading.

So, the next time that you go into a bustling market or bazaar, especially one that is abroad, remember that you’re stepping into a stock market of sorts. If you do well in a bustling market, you’ll do well in a stock market.