TWO MAJOR TYPES OF TRADES!!

Bullish Trade (Expecting the price to go up)

• Meaning:

You are optimistic about a stock, a cryptocurrency, or any asset. You believe its price will increase over time.

• How you trade:

You buy (go “long” on) the asset now at a lower price and plan to sell it later at a higher price.

• Simple example:

Imagine a stock (say, Apple) is trading at $100 today.

You think Apple will grow because of a new iPhone launch.

So, you buy 10 shares now at $100 each (spending $1,000).

Later, if the stock rises to $150 per share, you sell them.

You make $50 profit per share, or $500 total (before fees/taxes).

In short:

Buy low ➔ Sell high ➔ Profit.

⸻

Bearish Trade (Expecting the price to go down)

• Meaning:

You are pessimistic about an asset. You believe its price will fall.

• How you trade:

You sell first (called “short selling”), then buy back later at a lower price.

• Simple example:

Tesla’s stock is trading at $200 today.

You think Tesla will fall because of bad earnings news.

You borrow 10 shares and sell them immediately for $200 each (getting $2,000).

Later, Tesla’s stock drops to $150.

You buy 10 shares back for $150 each (spending $1,500) and return them.

You made $500 profit ($2,000 from selling - $1,500 buying back).

In short:

Sell high ➔ Buy low ➔ Profit.