Let's imagine that we are in a medieval market and I would explain to a knight like this:
"My lord, trading is like the exchange of goods you already know, but it is done without the need for the items to change hands immediately. Instead, written promises are used to buy or sell something at an agreed upon price." , with the hope that the value of that good will increase or decrease. Thus, you can earn more gold by selling it more expensive than it cost you, or by buying cheaper what was previously more expensive. It is a game of predicting and waiting, like when you plan a strategy on the battlefield, but instead of lands and honors, it's coins and goods."
And how is this 'trading' done?
Trading is done through a market, which in the modern world is usually a digital platform. Here I will explain the basic steps:
1. Open an account: Just as you need a bag to store your coins, to trade you need to open an account on a platform that allows you to operate with different goods, such as coins, grains or precious metals.
2. Analysis and strategy: You must study the market, like a strategist studies the battlefield. This involves analyzing prices, trends and news that may affect the value of goods.
3. Execute orders: When you decide the time is right, you will issue a buy or sell order, similar to how a feudal lord gives orders to his vassals. The difference is that these orders are executed instantly in the market.
4. Monitoring and adjustments: After your order, you must follow the market to see if your strategy works. If necessary, you can make adjustments, like a commander adapts his tactics during battle.
It is important to remember that trading entails risks, as in any commercial company. You don't always win, and sometimes you can lose gold, so it is crucial to operate with caution and knowledge.
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