The current paper gold adopts a 100% capital and one-way trading model. Therefore, the paper gold at this time has no leverage effect, and its market is relatively stable, with higher risks than other gold trading products. It is also relatively low. However, the current paper gold can only be bought up and not down. So when the price of gold is falling, some investors can only wait and see, and they are easily trapped.
Basic principles for avoiding risks:
First of all, everyone should abide by the principle of stop loss. When everyone discovers that there is a loss in the account, then it is time to exit the market as soon as possible, so as to avoid being stuck for a long time. However, in the golden period of the past 20 years, many investors were forced to get stuck because they did not stop their losses in time. However, they were able to turn over after a long wait.
The second is that investment in "paper gold" should be based on trends. At this time, everyone should try to avoid frequent short-term entry and exit. The trend of the current gold price band is relatively obvious. Once the gold trend is formed, it will not be easy to change. In addition, the current gold price is also relatively sensitive to various news, so Large fluctuations in direction may occur in a short period of time, but generally the overall trend remains unchanged. In many cases, paper gold investment should focus on the general trend, so as to avoid frequent short-term operations. method.
The third thing is that everyone should choose the correct method of opening and adding positions when investing in paper gold. So generally speaking, everyone should try not to exceed 1/3 of the total capital each time they open a position. And now when adding positions, you should use the pyramid adding method, so that if you make a profit, the funds for each added position will decrease in sequence.