Question opgrading gear with justice points

When you enchant or gem an item that you've equipped, you can no longer trade it.

This may create a different question since you are new.  You'll notice the piece of gear says "Bind on Pickup."  This means that through conventional means, you cannot trade this piece of gear.  This is unlike gear that says "Bind on Equip" which means that you can freely trade that piece of gear until it is equipped by someone.  Once you've looted a Bind on Pickup item, you cannot trade it with one exception...

The exception is that for 2 hours after picking an item up, you may trade it to anyone that was eligible for the loot at that exact moment.  For example, in your case, you looted some shoulders.  These shoulders were Bind on Pickup so you couldn't trade them.  However, you'd notice for the first two hours, there would be some bright blue text explaining you could trade them for the next 2 hours but ONLY to the other people in your 5 man dungeon group.  You couldn't, for example, loot something out of a dungeon, come out of the dungeon, and trade it to a guildmate who did not participate in your dungeon group.

Let's say you are a Warrior who is DPSing.  A Paladin tank sees some Dodge/Mastery legplates that are Bind on Pickup and rolls need.  The Warrior clicks Need as well and wins the item.  However, the Paladin asks the Warrior if he could get them since it is his mainspec.  The Warrior agrees and trades them to the Paladin. This is why this system was implemented.  There were instances in raids where a loot master, common in most organized raids, mistakenly assigned a piece of loot to the wrong person.  This made it really frustrating for the loot master and the rightful recepient of the loot.  Blizzard found this to be the best possible idea to help alleviate what was a common issue.

To summarize...
1) Bind on Pickup gear may be traded to others who were able to roll on the loot (same 5 man, same 10 man raid, same 25 man raid, etc) for 2 hours.  After that, the trade opportunity text goes away and that item is bound to you.
2) Bind on Pickup gear will lose the trading opportunity if gemmed, enchanted, or reforged.  The game will prompt you to make sure you are willing to give up the trade chance.
3) Bind on Equip gear will be able to be traded freely without time restriction until someone has equipped it.  There will be no trading opportunity once a BoE is equipped.

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