Buy Low Sell High, probably the most basic suggestions you can get about trading. This actually borders on being stupid. But as you will find out it is actually the secret to trading success. This one strategy alone, if implemented correctly can improve your profitability.


Derivatives Trading involves substantial risk of loss and is not suitable for all investors. Past Performance is not necessarily indicative future results – Read Full Disclaimer


What is Buy Low Sell High strategy?

In simple words it means you buy when the price of an instrument is low and likely to go higher and sell when price of an instrument is high and likely to go lower.

Sounds simple right! But the key is to find out when the price is low and when it is high. To do this consistently you need a method and tools which tell you when the price is too high or too low.

I use Market Profile Charts to make that assessment. I tried many tools like indicators, channels, classical chart patterns, higher form of pattern recognition like Elliott Waves, Neowaves, harmonics, etc. But some how none of the above tools, though fascinating, seemed to give me lasting confidence. The oft repeated suggestion “to find a method that suits you” kept echoing in my mind. Until I started using Market Profile Charts.

As it turned out the well meaning “common wisdom” could not serve me well, till I met “common sense”, and we have been friends ever since.


How to Buy Low Sell High using Market Profile Charts?

For finding the high and low price levels we need to find the areas of commitment by buyers and sellers. Once we do that then we can look for a retest into that area. As we reach areas of buyer/seller commitment, we then monitor whether the buyers/sellers are defending that area or not. If they are defending we got our /low/high price respectively.

Lets see a couple of example to make the point clear.

 

 

 

 

 

The above examples clear what I mean when I say “Buy Low Sell High”. Using Market Profile Charts give you many such advantages. Some are fun and some are serious money makers. We will continue our journey of learning to trade and soon we will Get That Trading Edge!


There are different strategies to suit different markets. Other strategies which are very useful are Sell Break Downs & Buy Break Outs and one more is Buy Breaks & Sell Rallies.


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