What Are the Pros and Cons of Making an Investment in Gold?
Individual gold investment varieties can be divided into stable gold investment varieties and venture gold investment varieties. Investors should choose investment types according to their own preferences, but no matter which gold investment type is chosen, investors will face price risk, market risk, and opportunity cost risk.
Personal gold investment
Right!
- Chinese name
- Personal gold investment
- Brief introduction
- Become an important tool for financial investment
- investment advantage
- Personal investment direction is mainly real estate
- real estate
- Value change: Generally small change
- Individual gold investment varieties can be divided into stable gold investment varieties and venture gold investment varieties. Investors should choose investment types according to their own preferences, but no matter which gold investment type is chosen, investors will face price risk, market risk, and opportunity cost risk.
- With the development of the economy and financial industry, gold has gradually become an important tool for financial investment, and has become as important an investment tool as real estate, government bonds, and banking financial instruments. More and more people are paying attention to gold investment. For these risks, investors can use knowledge preparation and establish a good investment mentality to avoid risks and reduce their losses.
- Generally speaking, the main investment directions of individuals are real estate, savings and securities. The advantages and disadvantages of these investment methods are compared as follows: [1]
- China's personal gold investment has just begun, and investors are generally unfamiliar with gold investment. Prior to this, adequate preparatory work should be a required course for gold investors.
- When new investors make gold investments, they have doubts about many aspects, both technically and psychologically. New investors can refer to the following suggestions:
- 1. Good at learning from learning, good at using demo accounts, making good use of free demo accounts, learning gold investment trading-investors' patience: wait for a positive rate of return; beginners must study patiently, step by step, do not rush to open real trading accounts , You can try a demo account first. There is an application for a free demo account in Global Gold Exchange, and new investors can experience it.
- 2. Errors are inevitable. Remember to learn lessons. Do not repeat mistakes and losses. It is inevitable that you do not blame yourself. It is important to learn lessons from them and avoid making the same mistakes again. The sooner you learn to accept the losses, learn the lessons, and gain The days of Lee are coming soon. In addition, learn to control your emotions. Don't jump over because you made $ 800 and don't want to hit the wall because you lost $ 200. The less personal emotions you have in trading, the more you can see the market and make the right decisions. To face gains and losses with a calm mind, you must understand that the trader does not learn from gains, but grows from losses. When you understand the cause of each loss, it means that you are moving towards profitability again because you Found the right direction.
- 3. You are your own worst enemy. The biggest enemy is yourself-greed, irritability, uncontrollable emotions, lack of defense, excessive self, etc. It is easy for you to ignore the market trend and cause wrong trading decisions. Don't trade simply because there is no entry or boring for a long time. There is no certain standard here about how much you must trade in a certain period. Even if you only open a position in 2-3 days, this trade is profitable. A $ 600- $ 800 signifies that your decision is correct and nothing is wrong.
- 1. Personal gold investment is invested with "free money"
- Remember that the money used to invest must be "free money", that is, funds that are not urgently and accurately used for a while. Because if investors invest in the necessary expenses of family life, in case of a loss, it will directly affect family livelihoods. Or, when making a fortune with a sum of money that should not be used for investment, you are already mentally disadvantaged. Therefore, it is difficult to maintain an objective and calm attitude when making decisions, and the chance of failure in the investment market will increase.
- 2. Individuals who invest in gold should know themselves first
- Know yourself and know yourselves. But in the gold market, knowing yourself is the best. Investors need to understand their personalities, because people who are impulsive or emotionally inclined are not suitable for this investment. Most successful investors are able to control their emotions and have strict discipline, which can effectively restrain themselves. Therefore, only those who know themselves can win in the gold market.
- 3. Personal gold investment needs to face the market and abandon illusions
- The market is real. Don't be emotional, and look forward to the future and the past. A senior trader said: A person who is full of fantasy, affection, and very exposed is a beautiful and happy person, but he is not suitable for an investor. A successful investor can separate his feelings, fantasy, and trading. of.
- 4, personal gold investment small households should not blindly invest
- Successful investors do not blindly follow the opinions of others. When everyone is in the same investment position, especially those small investors are following up, successful investors will feel dangerous and change course. Blind compliance is a fatal psychological weakness for "small-household" investors. As soon as a piece of economic data was released, a news flashed out, and a 5 minute price chart breakthrough, and it jumped into the market in rush. I am not afraid that everyone will lose money together, I am afraid that everyone will make money. In a sense, sometimes the market trend is wrong, or the situation suddenly reverses after entering the order, which causes the order to be trapped. This is a normal phenomenon, and even a master is not immune. However, the most stupid behavior in how to make decisions and conduct after-the-fact actions stems from small household psychology.
- 5. Don't over trade personal gold investment
- To become a successful investor, one of the principles is to keep 2-3 times more funds at any time to cope with price fluctuations. If you do not have sufficient funds, you should reduce your positions, otherwise, you may be forced to close the position due to insufficient margin, and it will not help to prove accuracy.
- 6. Personal gold investment ideas are set, don't change lightly
- If after full consideration and analysis, the price and plan of the day's entry into the market are predetermined, do not easily change the decision due to the impact of the current price fluctuations, and make a temporary decision based on the change in the price on the day and market news, unless it is a magical investment A flash is generally very dangerous.
- 7. Personal gold investment must be taken immediately
- When investing in the spot gold market, there are many psychological factors that lead to failure. A common situation is that investors are facing greater and greater losses, and even when they know that they are no longer lucky, they often fail to make a decision because of indecision. The deeper and deeper the losses increase. The strong man breaks his arm, and when it breaks, he breaks.
- 8. Individual opinions on gold investment by others are not implemented
- This is not to promote arbitrary behavior. Remember, only you as an investor are responsible for your investment results. When you have grasped the direction of the market and made a basic decision, do not easily change the decision due to the influence of others. Sometimes the opinions of others seem very reasonable, which prompts you to change your mind, but then you find out that your decision is the most correct. Therefore, the opinions of others are always for reference only, and their own opinions are the decision to buy and sell.
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- With the high price of gold in recent years, a buying gold fever has emerged among investors, and many institutions, including banks, have also launched a variety of gold wealth management products. Among them, paper gold introduced by banks, investment gold bars, and gold t + d introduced by the Shanghai Gold Exchange, and gold futures introduced by the Shanghai Futures Exchange are all ways to invest in gold. Each method has different characteristics and is also applicable. For different investment groups. [3]
- Paper gold, which began to appear in recent years, is a personal certificate-type gold investment. Investors buy and sell virtual gold on the books according to bank quotes. Individuals earn low fluctuations in gold prices by grasping the trend of international gold prices. The advantage of investing in paper gold is that it does not involve the content of physical gold, so there are no fees such as storage fees, which can save investors a certain cost.
- At present, the industry generally believes that the price of gold is likely to rise. Therefore, investing in a suitable amount of paper gold in the fourth quarter can become one of investors' choices.
- Gold futures investment generally involves a margin mechanism and requires investors to have a certain risk tolerance. If it is a collection of physical gold, it is a more traditional investment method for Chinese people. Compared with gold jewelry, investment gold bars will only charge a small processing and circulation fee, which can also be repurchased. . However, investors who buy physical gold generally hold it for a long time. Considering the trend of economic recovery in the United States, long-term holding of physical gold such as gold bars may face certain risks as an investment method.
- In addition, gold has recently appeared in the market as a fixed investment financial product, which has the characteristics of low average cost and compulsory savings, and is also popular with investors. No matter what kind of investment method you choose, investing in gold as a financial management method requires investors to have considerable risk tolerance and act within their means.