I. Risk management

1. What is risk and risk management?

Risk is objective and inevitable, and has certain regularity under certain conditions. Therefore, we can only try to reduce the risk to the lowest level, but we can't completely avoid or eliminate it. The most effective way to reduce risks is to realize and recognize the existence of risks, and actively face and look for them, so as to effectively control risks and minimize them.

Risk management: refers to the economic unit to identify, measure and analyze risks, and on this basis, effectively deal with and avoid risks and reduce losses caused by risks.

2. Risk characteristics of gold investment market.

A. the extensiveness of investment risks

In the gold investment market, investment research, market analysis, investment scheme, investment decision-making, risk control, fund management, account security, risks caused by irresistible factors, etc. , almost exists in all aspects of gold investment, so it is extensive.

B. Objectivity of investment risk

The objectivity of investment risk will not disappear because of the subjective will of investors. Investment risk is formed by uncertain factors, which exist objectively. Individual investors do not control all the investment links, let alone predict the future changes of factors affecting the price of gold, so investment exists objectively.

C. Impact of investment risks

To enter the investment market, you must be aware of the investment risks. Because in the investment market, income and risk always coexist. But most people first consider risk from a negative perspective, and even think that there will be losses if there is risk. It is precisely because of the negative and uncertain factors of risk that many people dare not face up to it and cannot look at and face the investment market objectively, so they are hesitant.

D. Relativity and variability of investment risks

The risk of gold investment is relative to the investment varieties chosen by investors, and the results of investing in gold spot and futures are completely different. The former has low risk, but low income; The latter is risky, but the income is high. Therefore, risks cannot be generalized and have strong relativity. At the same time, the variability of investment risks is also very strong. As the factors affecting the price of gold change, it will affect investors' funds, and there may be repeated changes in profits and losses. Investment risk will increase or decrease according to the profit and loss of customers' funds, but this risk will not disappear completely.

E. investment risks are predictable.

The fluctuation of gold price is influenced by other factors, such as the trend of crude oil and US dollar, the change of geopolitical factors and so on, which will all affect the fluctuation of gold price. The analysis of these factors is predictable for the operation of gold investment. Objective and rational analysis will provide some guidance for investment operation.

3, the necessity of risk management

If there is no risk management awareness in the investment market, there will be a capital crisis and loss of profit opportunities. Mainly reflected in the following aspects.

I can reduce the risk rate of investment.

Using risk management can allocate funds reasonably and effectively, minimize losses, reduce risks and create more profit opportunities. Thereby reducing the investment risk.

ⅱ helps to maintain a good investment mentality.

This is very important. In the process of capital operation, it is inevitable that capital losses will be caused by mistakes. If the risk can be controlled reasonably, it will help to maintain a good investment mentality in the event of losses, reduce blind operation in emotional panic and reduce the possibility of continuous losses.

4. Implementation of risk management

I make a reasonable operation plan and scheme according to my financial situation.

Before operation, the proportion of capital operation should be reasonably customized according to the amount of capital, leaving room and opportunities for losses caused by misoperation.

Ⅱ. Customize the appropriate operation mode according to the time conditions.

The operation time of each investor is different. If you have enough time to watch the market and have certain technical analysis skills, you can get more profit opportunities through short-term operation; If you only have a little time to pay attention to the disk, it is not suitable for short-term operation. It is necessary to carefully find a more reliable long-term intervention point to hold, and then go out and cash out when the accumulated profit is large.

Three. Establish a good investment mentality

You must have a good attitude when you do anything, and investment is no exception. When the mentality is calm, the thinking is often clear. Only by objectively looking at and analyzing market fluctuations can we operate rationally.

Ⅳ Formulate operating procedures and strictly implement them.

The market changes all the time, and the ups and downs of the market will make investors feel lucky and greedy. If there is no operational discipline, the book profit and loss can only fluctuate with the changes of the market, and there will be no actual results without timely settlement. The initial profit may also become a loss, leading to the disorder of operating mentality, affecting the objective and ideal analytical thinking, and finally retreating step by step. Therefore, it is very important to formulate operational discipline and strictly implement it.

Rules and mentality of mature traders

The transaction should be natural and easy.

Don't force anything, and don't go against the market or yourself. The perfect deal is like breathing. You breathe in and out, just like going in and out. Be sure to calm down and relax. Look for those visible opportunities. Be sure to concentrate and stay alert. Pull yourself out of the hot market. Be an observer and wait for the opportunity. Don't trade in markets you don't understand, and don't think you have to trade in every band. There are always many opportunities for your personality to match your ability to read the market. Seize them and ignore other opportunities that are not suitable for you. Don't think that you can be a versatile trader in any market.

Don't fight.

Trading is not a war. The market is not chasing you, it doesn't even realize you exist. In fact, it has no interest in it at all. Gold doesn't know you bought them. They do what they have to do. You just need to get used to them. Market is your boss. Follow it and get paid, or you resist and get kicked out. Just like you don't fight the ocean, you just swim in it. If you find yourself in an incorrect trend, don't try to change the direction of the trend, but look for another suitable trend.

Don't guess

Don't impose personal feelings on the market, and don't expect the market to care about you. The market is neither hostile nor friendly. It just exists, that's all. You have the freedom to choose to join or quit. Trading is the ultimate freedom. The gold market is full of endless opportunities for profit and loss. It all depends on your choice. The market provides you with opportunities. You should open your heart to experience the special language of the gold market. There is only one language in the market, and that is the language composed of price, volume and market rhythm. Any tool you use to explain the market is a derivative of this language. Apart from the dialogue between the market and you, other miscellaneous things will only interfere with you, making you unable to see the actual price, volume and market rhythm.

Forget for a while that your money is in hot water in the market.

The money in the trading account is just a tool to make money. Maintain your money-making tools. You need these tools to make more money. Stop loss can prevent this tool from being seriously damaged. There is no certainty in the gold market, and everything is presented in the form of probability. So stop loss is inevitable and part of the transaction. If the market shows that there is something wrong with your position, you must stop. In this way, this tool has the opportunity to continue to serve you. Once you make a mistake, admit it immediately. Occasionally, gold will knock you out and rebound immediately, but don't ignore the stop loss. You can reopen your position at any time, but once you lose money, it is usually difficult to recover. Every loss represents a lesson, and you must decide how much to pay for it. Never pay a high price. Think of trading as an endless whole process, and don't overemphasize the importance of a single transaction. Any transaction is only a part of the whole. Allow yourself to claim compensation and move on.

Don't trade because of revenge or urgent need for money.

The gold market doesn't know about you, it's just a huge space that connects the actions of all other traders. It won't give you back just because you need it. You're the one in control. See your ability to make money from the market or lose to other market participants.

Traders participate in market behavior, which is equivalent to putting money in a big pot. From the moment they start trading, money is ownerless money. Anyone can learn from it as long as they have the ability. When traders invest money, they are ready to lose money. If you are willing to take the risk, just like everyone else, put the principal on the table. Then don't feel guilty when you win money in this cauldron.

It must be understood that risk is an inseparable part of trading.

When you exchange a commodity with small price fluctuation (paper money) for another commodity with large price fluctuation (gold or other trading objects), you choose to take risks. You do this because this kind of price fluctuation is just the tool you need to make a profit. Opportunities are accompanied by risks, and we can't just take one of them.

Trading sometimes seems boring.

This is normal. You don't trade for excitement. You may sit in front of the computer for hours and do nothing. This is not a profession that pays by the hour, but according to your correct choice. And often the right choice is to stay away from market behavior. If you want excitement, please find another place. Try to learn to find the pleasure of self-control, and accepting boredom is also part of a successful transaction.

Never say, "I know what the market will do."

No, you don't know, and no one knows. You should think, "No matter how the market changes today, I know what I should do." Pre-design the reaction behavior for every possible situation. This is your absolute freedom and guarantee. As long as the whole set of "if" is in these scenarios, "if" refers to market behavior, and "then" is your response. You can't control how the market develops, but you can control and adjust your reaction.

Decide what you want to trade.

If it's a trend, follow suit. If it is an interval, then operate against the trend. When the trend goes up, buy high and sell high, and when the trend goes down, sell low and make up low. In the range, buy low and sell high. If you want to reverse the trend, don't rely on price data. Never buy because the price is cheap enough, and never sell short because the price is expensive enough. You need a clear basis.

Define your signal

According to the signal reflected by your system, it is the only valid reason for you to execute the transaction. The rest is emotions. Never let emotions interfere with your choice of operation. Don't hesitate to open a position when your trading system sends an entry signal. When your trading system sends a sell signal, close the position in time. If you have questions about your trading system, do a simulation test on paper first. If your trading system is still in the process of testing, don't actually trade.

Build positive confidence in trading.

Be sure to understand the relationship between gains and losses involved in the transaction. An ambitious trading strategy can maximize your profit when you make the right decision, but it can also reduce the number of times you make the right decision. The opposite strategy will increase your chances of being right, but it will reduce the potential profit of each transaction.

Keep elastic

Modify your trading system according to market changes. Adjust your ambition and choose the appropriate trading structure according to the current market situation. Check your actions at any time to see if they meet the current market conditions.

Define what a loser is.

Losers think they are smarter than the market. Losers think they can find all the answers. Losers believe that there must be some secret system and instruction in the market. Losers think they can avoid losses. Losers don't use stop loss because they think they are right after all. Write down the characteristics of these losers and always review yourself to see if there are any similar characteristics. Don't make yourself a failure.

Define the way of thinking of winners.

Write down the characteristics of all successful traders, read frequently and measure the distance between you and them. Use this contrast to find your own weaknesses and analyze how to improve them. Be absolutely honest with yourself. Anything you don't review yourself, the market will eventually remind you, and this reminder will not be a good experience.

No matter what setbacks you encounter in the market, it is not its fault.

This is not the fault of any market maker or professional. Or a mysterious behind-the-scenes manipulator or an evil bear. It will always be your fault. You make a decision and then carry it out. Do you choose to participate or not? Please take full responsibility. Be yourself. Don't complain or explain. Responsibility can bring control. Completely control yourself, trading is an absolute test of self-control. At first, you may feel cold and uncomfortable, and feel that you live alone in the fortress. Finally, when you gain an advantage and feel the feeling of reaching the top, all this will pay off. Complete control of one's behavior and absolute self-control are the rewards of all efforts. In short, try to be the master of your own universe.

Learn to laugh at yourself.

Don't be too hard on yourself. You don't have to prove anything to others. You might as well be the first person to laugh at your mistakes. Don't try to be perfect, excellent performance is good enough.