DIF Education FINANCIAL MARKETS VS OTHER MARKETS
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Financial Markets Vs Other Markets With the first post we will be speaking about the basic view related to the reality of the financial markets. Anyone interested to invest in financial products needs to understand what markets are, how they are behaving and the risks associated. Our goal is to explain, in a very simple and rational way, starting with the basic rules and constantly delivering education lessons while associating examples of the real life with how financial products works, an explanation which may deliver a better understanding of this world. In financial markets it’s exactly the same as in others real-tangible markets, for example, a market where they are selling fish, fruits or any other open-market you would like to relate at. Taking into consideration that, for example, going to an openvegetables-market in a random day to buy tomatoes, and there are few people selling tomatoes and more people looking to buy tomatoes, then normally the price of the tomatoes will be higher (less sellers, more buyers) and vice versa, if you are going to an open-market to buy tomatoes and there are plenty of tomatoes to be sold and just few people willing to buy tomatoes, then the price will be going down (more sellers, less buyers). We have to understand this, the basic rules of Demand vs Supply. Simple as it is and common sense. The financial markets works the same way, if you are looking to buy a stock when there are less sellers than buyers, then the price of the stock will be higher and the other way around, if there are more sellers willing to sell and less buyers, the price of the stock is going down. We always have to try and find the exact moment when we can/should buy or sell a stock. Those are the first rules of the financial markets, which have to be understood and always taken into consideration. Of course there are many other things associated to financial products, but to be able to know when is the best time to buy and sell a stock, as an investor, you have to understand first how these products are working. Like before driving a car, you have to take lessons and be aware of the driving process and traffic rules to get your driver’s license. Our financial company will deliver the simplest view of financial markets associated to real life examples, which will help you to better understand the investing process. Our company approach about financial markets is very different and will bring the common sense and rational thinking closer to the investor.