... why sell low and buy high?

I am so completely and utterly confused as to why you sell low and buy high… I’ve had my uncle who introduced me to babypips and forex explain but … it AIN’T stickin. I tried to go back in lessons to see if it was ever explained but it wasn’t. Now all the tools make sense (I’m in third grade) , if you don’t question WHY lol … but I must know WHY!!! Please help lol.

You don’t necessarily.

But what you’re describing applies well to “breakout trades”, for example. If the price has been within a range, with a maximum than which it doesn’t go higher and a minimum than which it doesn’t go lower, for quite a while, then if the price suddenly breaks out of that range you might decide it’s going to go further in the direction in which it broke out.

You’ll sometimes be right and sometimes be wrong.

But if that’s what you’re trying to do, you’d buy a breakout of the new high price (hoping to sell even higher, later) or you’d sell a breakout of the new low price (hoping to buy to close your trade even lower).

So you might “buy high” and “sell low”, as your uncle apparently mentioned.

But when you open a trade by “buying high” you’re still hoping to close your trade higher, and when you open one by “selling low” you’re still hoping to close the trade by buying to close your sell-trade even lower.

In other words, “high” and “low” can be compared with either “recent prices” or “hoped-for later prices”.

Hence the apparent ambiguity.


Buy low sell high implies trying to pick a top/bottom or a reversal. This means your going against the trend. This can be dangerous.

Buy high sell low means your following the trend.

Thats my guess.

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Agree with you; it’s the way of following the market trend! This is why we are trying for! By the way, only good skilled Forex traders can do so!

You’ve completely missed the point. Did you even read Tacita’s reply in which she answered the original question?

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Sorry for my poor understanding of English. For me, I always do that to hunt for price reverse. I kn my explanation simple


If you dont mind me asking…

Do you try to time/anticipate a reversal or do you wait for some kind of confirmation of a reveral and then enter on a retracement? Or do you have another method?

Sorry for the late reply bro been bz with work. I wait for confirmation of the sar also with the help of ichimoku cloud. N bb play abit of part also.