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Investment knowledge

What preparations do you need to invest in gold?

Gold has the function of hedging and hedging, but as an investment tool, there must be risks objectively. Therefore, investing in gold is the same as other investment markets, with both revenue and risk. So, what preparations should investors make in the gold investment field?

1. Investors must be mentally prepared

Affected by geopolitics, global economy, energy market and other factors, the price of gold fluctuates greatly and fluctuates greatly, affecting the mood of investors at any time. If there is no awareness of resisting risks and there is not enough psychological control, it will lose objective judgment. Market capacity. Therefore, psychologically strong, daring to bear certain risks and correctly treating losses are the psychological factors necessary for investors to invest in gold.

2. The reserve of gold basic knowledge is a compulsory course for investors.

Investors should understand the factors affecting the price of gold, the basic characteristics of gold investment, and the basic analysis of gold investment trends, and learn to master the basic analysis of gold price trends in order to make correct choices and judgments based on investment needs when investing in gold. .

3. Investors must clearly understand the trading rules of gold investment varieties

Before making a formal transaction, investors must have a comprehensive understanding of the trading platform and be proficient in the operating rules of the trading software to avoid unnecessary losses caused by operational errors. At the same time, it is necessary to know the trading hours, transaction costs, profit and risk control ratios of the trading instruments and related trading rules.

4. Investors investing in gold should have clear goals

People invest in gold, which can be divided into short-term investment, medium-term investment and long-term investment in terms of time; from the profit requirement, it can be divided into two types: preservation and appreciation. If you invest in gold, if you are mainly interested in long-term value preservation and appreciation, it may be more appropriate to choose a medium-long line to invest in gold. If you want to earn a price difference through gold price fluctuations in the short term, you can choose short-term investment. Ordinary investors are difficult to judge the short-term trend of gold prices. They can choose a relatively low point and intervene in the medium and long-term investment mentality. This is convenient and avoids the handling costs incurred in frequent transactions and reduces transaction costs.

5. Investors should reasonably allocate investment funds and risk control ratio

(1) Strict implementation of take profit and stop loss: Stop loss is to bear small losses to avoid causing large losses. Take profit is to prevent investors from failing to cash in due to greed after profit, and then turn from profit to final loss. In a word, you should go out and wait in time when there is a risk, and then take action after you have determined the safety. Small and medium-sized investors may have irreparable endings due to limited funds.

(2) The funds invested are allocated and managed according to the fluctuation characteristics of the market. The reason why many people lose money is because they don't understand the management of funds, they don't observe the characteristics of the market, and they are full of warehouses every day. Investors should understand that different market conditions and risk/profit ratios are different. Many experienced investors will only buy in batches according to the pyramid plus code principle when the risk/profit ratio is around 1:3. ABC123 LTD believes that gold accounts for 20% of the portfolio should be reasonable.

Generally speaking, everyone is different in terms of risk appetite, financial strength, time schedule, and operation methods. Before investing in gold, it is necessary to tailor the investment plan according to the actual situation.