Your Home Retail Business

Shoppers Stop, Big Bazaar, D-Mart, Reliance Fresh, Croma just to name a few…these are some of the biggest retailers in India, huge operations that make fortunes in revenue. How do they do it? What is their big secret? Simple: at the end of the day, they have mastered the art of buying at wholesale prices and selling at retail prices. Wait, this is supposed to be an article on trading so why write about the retail world of gadgets, clothes, appliances, and more? It’s an important topic if you want to understand how to be a consistently profitable trader. Their buying and selling actions in the markets they operate in are no different than the actions of the consistently profitable trader. The difference is that the trader can do all this from the comforts of their own home.

Let’s get more specific with these actions so that you can become a better trader by the end of this article. For D-Mart to profit, they have to make sure that there are many willing buyers to pay the retail prices they are charging. When we trade, we must do exactly the same thing, we need retail buyers who are willing to buy at the retail price levels we are charging.

Again, this is really no different from paying extreme retail prices for a new car. As soon as you sign the papers and drive it off the lot, the price declines dramatically. The first step in this process is to accurately identify key retail prices in a market. The second step is to wait for someone to buy from you at that level. Just like people walking into Walmart each day and pay retail prices, people will be more than willing to pay you retail prices in the markets. This is because most people buy on good news and in strong up trends. In both cases, they are typically buying at or near retail prices.

You really do have a retail operation going at your home if you think about it. Good traders know price levels that are too low (Support/wholesale) and price levels that are too high (Resistance/retail). They buy at wholesale prices from people who are trained, conditioned, and willing to sell at wholesale prices. They also sell at retail prices to buyers who are trained, conditioned, and willing to buy at retail prices. Then, they just repeat the same simple process over and over for the entire life of their trading career, just like the retail store.

We do it in a very educational way so that you can start your retail business at home. My hope is that explaining it this way may help you understand that trading is not reinventing the wheel. How the profitable short term and long term trader makes money is exactly how the retail store makes money. The difference is the trader has a lot less overhead and headache.

Happy Trading !

-MASTERMIND