Disappearing Concept: How come?
It is important to note that when you think about your money disappearing, it depends mostly on the price stocks. For instance, there are many things that could lead to the ups and downs of price stocks. Bull market, bear market, supply and demand, everything could lead to change. Here, surely, you would understand that this kind of fluctuation reflects how much you earn as well as how much you lost.
Logical Case Samples
Imagine you buy a stock for $10 and sell it for $5 only. It is clear where your position is, you actually lost $5 per share. So, it does not mean that the money goes to someone else. It does not even mean that the money you’ve lost went to those buying your stocks. This is the elaboration: the first situation name is ‘buy and sell trades’. First, you plan to buy a stock at $15. Then, before you buy it, all of sudden the stock price falls to $10 per share. So, you choose to buy at $10, however you don’t get the gain from the stock price in the $5 depreciation.
On the other hand, you actually buy the stock at the current value, which is $10 per share. So, the scenario would be like this, you actually saved $5. But, you don’t actually earn $5 profit. If the situation changes, for example the stock rises from $10 to $15, you could get a gain of $5. However, in order to get this gain, you need to move higher to $5 per share.
