Five elements of gold investment

The gold market is changing, and the gold price trend is affected by many factors such as supply and demand, politics, economy, technology and psychology. Sometimes there are big ups and downs, high winds and high waves. Sometimes long and short are stalemate and unhappy. So how do investors establish a correct investment philosophy in the gold market? How to grasp the accurate trading time The gold market is changing, and the gold price trend is affected by many factors such as supply and demand, politics, economy, technology and psychology. Sometimes there are big ups and downs, high winds and high waves. Sometimes long and short are stalemate and unhappy. So how do investors establish a correct investment philosophy in the gold market? How to grasp the accurate trading timing? How can we make long-term stable profits? I think we should start from the following five aspects. 1. Risk control comes first. The American stock god Buffett once said a widely circulated saying:'Investment should try to avoid risks and keep the principal.' In my opinion, for investors, the emphasis on risk control cannot be overstated. Because the principal is gone, your chance of turning over in the market is gone. Therefore, paper gold investors must pay attention to stop losses in the chasing market. This is an effective risk control method. 2. Reduce unnecessary transactions. Reducing unnecessary transactions does not mean that we usually do not trade. It does not mean that we will be able to seize valuable operational opportunities by reducing unnecessary transactions. The key is that we must carefully consider each transaction, and fully understand where to stop the profit after entering the market, and under what circumstances you should stop the loss in time. And whether the market currently has a good entry point. Please keep reducing transactions. This is a sentence understood from countless mistakes and countless lost money. Buffett once said: 'Money is here from active investors to patient investors. Many energetic and enterprising investors gradually lost their wealth. 'In fact, no matter what your philosophy is, you are a speculator or an investor, this sentence applies. To reduce your mistakes, start by reducing transactions. 3. Fund management is critical. Due to the large spread of paper gold investment funds, it is generally considered to be better for medium and long-term investment, and it is not suitable for frequent short-term operations. However, putting all funds on the medium and long term is not conducive to novices to improve their investment level. Then money management is very important. We can consider using most of the funds, such as 40-60% of funds for medium and long-term investment, and gradually build positions during the off-season each year. The remaining funds can be considered for short-term operations. When entering the market, don't rush into the market at one time. You can consider entering the market in batches, which can reduce the risk. 4. Control of trading psychology. The wind knows the strong grass, and the fire makes real gold. The greed, fear, hesitation, decisiveness, courage, prudence, conformity, etc. in the human character are fully exposed in market transactions. To a certain extent, profit is a reward for your character's strengths in the trading process, and a loss is a punishment for your character's shortcomings in the trading process. Technically studious, psychologically sad. Human nature is revealed one by one in the ups and downs of the market. Control your own psychology, recognize human nature, stay away from the herd, stand on the opposite side of most people, and you have won half of the market. 5. Technology and experience. In fact, as far as technology is concerned, most investors can learn very well, because since he (she) dares to come to the financial market and has a certain financial strength to operate, it is impossible to have any intellectual level. Obstructive. The key is that they did not choose their own technical tools, because there are too many technical indicators and analysis tools, dazzling. It should be noted that different analysis methods are used in different market stages. In terms of experience, it needs to be accumulated over a long period of time, and it cannot be achieved in a day or two, unless you are a genius. Therefore, it is also a shortcut for investors to choose expert financial management. Previous post: Remember the ten major methods of gold trader Next post: Investing in gold must be wary of eight deceptive behaviors