What are the factors to consider when investing in gold?

First, set a strict stop loss, save strength

Precious metals trading, the importance of technical analysis is self-evident, it shows us the timing of the entry and the future of the profitability of the space, which allows us to get the maximum benefit, but after all, people are not God, the market will always be errors in judgment, once there is a directional miscalculation, they are still unaware of the time of sticking to it, a huge crisis has arisen, how to minimize the cost of the error? At this point it is necessary to set up a scientific stop loss risk control, timely flat off the wrong single, although the loss out, but maximize the strength of the preservation of the next profit to save enough ammunition.

Second, control the position, refuse to heavy positions

On the battlefield, if all the troops are sent to attack the enemy, will undoubtedly cause the rear of the emptiness, but in danger, precious metals trading funds are like the army, in the right time to send out the right people, in order to get the best results. When the trend is not too clear, you can generally use one-third of the funds to build a position, once the direction is found to do the opposite, you must immediately strict stop loss; when the trend has been very clear, the short-term can be sent to send a heavy army - that is, 6 or 7 percent of the position to strike quickly, after making a profit after the short-term rapid exit.

Investors often have this question: how much of the position into the field is considered reasonable? The answer given by many professionals is one-third. That is, assuming that the amount of money available in the account is 1 million, then with one-third of the funds is about 300,000 into the field of trading, the remaining 70 as a reserve fund, waiting for the right time. In margin trading, this is indeed an important means of controlling risk, but in practice, each investor's trading personality and the amount of money are different, if the generalization of this "one-third method" across-the-board to control the position is obviously unreasonable.

For the novice, step by step is of course a good choice for investors who have had enough experience in precious metals trading, in the trend has been very clear, the odds are very high, obviously heavy positions 5 into or 6 into the field in line with the principle of maximizing the benefits, of course, the process of stopping loss is also essential.

Third, the time to be grasped, the soldier is precious and quick

In precious metals trading, risk control is particularly important, the account did not carry out any transactions, that is called "empty position" state when there is no risk, but this state is also no gain, as long as the entry into the transaction, will face a certain degree of risk, so the control of the entry into the transaction time has become particularly important. The shorter the position, the smaller the time risk, and the longer the position, the greater the risk of the corresponding position.

The way to avoid this risk is also very simple, just try to shorten the period of the position. Precious metals day-to-day fluctuations are very frequent, there is enough profit space and out of time, which is a unique advantage of precious metals trading, grasp and shorten the position time, more conducive to seeking higher returns.