Many Wealth building frequently uses price and value to mean the same thing. As wealth builders, let’s start with a definition.
Price = the amount of money required in payment for something.
Value = the importance, worth or usefulness of something.
These are abbreviated definitions, but they start to show us something potentially useful in our trading..
When we trade in the various financial markets, we see the price on the chart or quote board.The price is what the market maker is selling or buying the specific financial product you are researching.
The value of that instrument can be something different if you know where to look. When day trading options, you can potentially boost your profitability by choosing the right option. Even if you have been trading equity options for years, there are things you might have forgotten. Do you know what theoretic value is for an option?
Wealth building is a major focus for Robert Roy and those who work for WealthBuildersHQ.
Traditional methodology of wealth building has left many a bit richer and it may not always be you.
Free classes only cost time, no money. So is it price or value that causes you to hesitate to take advantage of excellent trading information when it is free? Do we not totally trust FREE? Look at the value versus the price when you find yourself hesitating.
Rob Roy, founder of WealthBuildersHQ has a free online class called Building an Options Trader and you have the opportunity to watch it live or recorded. Learn how to get the most out of your options trading.
Learn how to recognize when the bid x ask spread in futures has increased so that you know when to wait for a better entry. That is the sign of a trader who knows the difference between price and value.
Become a knowledgeable wealth builder at WealthBuildersHQ