1. Economic data, focus of attention
Almost every trading day, countries publish a series of economic data, and these data reflect different issues. Investors who are new to the gold market often find it difficult to start when faced with numerous data factors. In fact, the market has a focus of attention in every period. Only according to the focus of the market can we find the data content that has the most impact on the market. For example, if the market's focus is on the central bank's interest rate cut, then the market's focus is on data reflecting the level of inflation, such as consumer prices, etc., and other data will become secondary influencing factors; another example is that the market's focus is on the issue of economic recession. Then the market's focus is on economic data that reflects the economic outlook, such as consumer confidence. As the weak players in the market, we do not need to analyze the possibility of good or bad data. There are many economists around the world studying such issues every day, which is enough for our use. What we need to do is to analyze the impact that the data results may have on the market trend, and use this to judge the changes in market mentality based on the real impact of the data results on the market. Only by seizing the changes in market mentality rather than changes in economic data can we be invincible in the market fluctuations.
2. Market holidays, reorganize your thinking
Except for the Middle East market, the global gold market is closed two days a week, and each country has its own different holidays. If the gold price closes with a sharp rise or fall before a market holiday, investors should be cautious when entering the market after the holiday. If they follow the same trading methods as before the market holiday, they may incur the risk of losses. Because the market shutdown gives global investors ample time to re-examine the previous fluctuations in gold prices, many investors may change their previously irrational behavior. When we enter the market after the holiday, we must adhere to the principle of giving up three points rather than grabbing one second, and calmly observe market changes to determine new operating strategies.
3. Market changes, every day is different
The market is changing every day, but some investors fail to adjust their market entry strategies at all times to follow the changes in the market. Continue the previous operation method. It is even absurd to think that yesterday I bought at a certain price and sold at a certain price, making a lot of profits, and I can still make profits today using this method. As everyone knows, sticking to rules is a major taboo in gold market trading. The market mentality may change in a week, in a day, or even in just a minute. If you don't follow the market, it's easy to wipe out all previous profits.
4. If the market situation is unclear, do not enter the market
Sometimes the long and short sides of the market are in a stalemate stage, which is reflected in the narrow range fluctuations in gold prices and finally determines the breakthrough direction. At this time, investors' countermeasures It is best to stay on the sidelines and wait and see. Since we cannot track the latest changes in the market in a timely manner, it is difficult to judge the direction of a breakthrough. The large buying and selling spreads of real paper gold transactions carried out in China also increase the extent of our losses. If we make a mistake in judgment, the amount of losses will be huge. It doesn't matter if you earn less. There will be more opportunities in the future. Investors must know that it is easier to lose money than to make money when investing in domestic real paper gold trading. While margin trading investments are highly profitable, the risks are also high.
5. It feels wrong, it’s better to get out
Sometimes doing the gold market requires a little bit of feeling. If it doesn't feel right. Don't force yourself to enter the market. If you enter the market under the guidance of media analysis or the persuasion of others, you will inevitably feel uneasy in the face of volatile market conditions. If the market is bullish but you are bearish, it is difficult to guarantee a good deal. It is better to leave this time to yourself to carefully analyze and summarize the gold market. Especially when you have a strong premonition that the market will fall sharply, don't force yourself to enter the market. Experience tells us that sometimes this premonition is often more accurate than analysis and prediction. In paper gold trading, real offer transactions must first ensure not to lose money, and only secondly can we talk about making money. When you feel that the market trend is not clear enough and you lack confidence, it is better not to invest. If you feel unsure, it is better to do nothing and wait patiently for the opportunity to enter the market. If the market has already opened and you feel like "it's tasteless to eat and it's a pity to abandon it", it's better to leave the market flat. Don't worry too much about profits and losses and take uncertain risks.
6. Key price levels, treat them with caution
Key price levels are often the intensive transaction areas in the early gold price fluctuations or the key psychological price levels in the market, and have withstood the test of the market several times. Without strong motivation, it is difficult to effectively break through. When the gold price moves near the key price, it often shows a fluctuating trend. Without the influence of strong factors, it is very likely that the market has the intention to break through the key price, but does not have the ability to break through the key price. At this time, we cannot easily assert a breakthrough. Experience shows that the market's reversal trend often starts before the key price. If strong influencing factors appear, it may lead to a sudden breakthrough. We don’t need to worry about whether this factor is theoretically established or reasonable, because many times the market only needs excuses and fantasies about the future, rather than definite factual basis. Following the market is our best choice.
7. The market is calm, so be patient
Some investors often think that if they don’t trade, they are not speculating in gold. If they don’t trade for a day, they will feel itchy in their hands. In fact, many times we need to be patient and wait, especially when the market is calm as water, we need to be more patient. Only investors who can endure loneliness can become masters in paper gold trading and investment.
8. Official speeches, carefully analyze
The speeches of officials from various countries are undoubtedly a major influence on the trend of gold prices. However, due to the official’s position, identity and the weight of the speech content, the impact on the gold market is also different. . Among all officials, the speeches of Federal Reserve Chairman Greenspan have the greatest impact on the gold market. Although Greenspan always uses an ambiguous way of speaking, whenever he speaks, global gold trading investors are listening to him. words and try to analyze the deeper meaning in their speech content. Another important figure among U.S. officials is the Secretary of the Treasury. U.S. monetary policy is usually spoken by the Secretary of the Treasury. The speeches of EU officials are usually rarely recognized by the market. Perhaps the market has long been accustomed to the good wishes of EU officials for the economic prospects. On the contrary, the pessimism in their speeches is more likely to arouse the market's response.
9. The gold and foreign exchange markets are interrelated and influence each other
In many cases, fluctuations in the foreign exchange market have a great impact on the gold market. When the U.S. dollar exchange rate rises or falls sharply, it often drives gold down and up. The rise of the euro will also drive the rise of gold. Generally speaking, when the US dollar rises, gold falls, the US dollar falls, and gold rises. Synchronous situations cannot be ruled out, but the same situation is very rare. If such a situation occurs, investors need to analyze it carefully. , consider carefully. In the international foreign exchange market, the weakness of the U.S. dollar often drives up the price of gold. This is because the fall of the U.S. dollar allows investors who use non-U.S. dollars as their standard currency to buy cheap gold in other currencies. It can stimulate demand for gold, especially consumer demand for gold jewelry. For example, from 1985 to 1987, when the US dollar depreciated 40% against the Swiss franc, the price of gold rose from US$300 to US$500 per ounce. Generally speaking, when the U.S. economic growth slows down and there are signs of recession, the price of gold is expected to rise if the U.S. dollar exchange rate falls. On the contrary, if the US dollar exchange rate rebounds, the price of gold will fall. This is because the decline in the U.S. dollar exchange rate is often related to inflation, which increases speculative demand in the market, thereby stimulating an increase in gold prices in the market. In August 1971 and February 1973, the U.S. government twice announced the devaluation of the U.S. dollar. It was under the influence of factors such as the sharp decline in the U.S. dollar exchange rate and inflation that the price of gold in the international gold market rose to the highest level in history in early 1980. , that is, exceeding $800 per ounce. Looking back at the history of the past thirty years, we can find that when the exchange rate of the US dollar against the currencies of other Western countries is strong, the price of gold in the international market will fall sharply. If the dollar depreciates slightly, gold prices will gradually rise. 10. In a state of war, the price of gold rises
In history, gold has not only been regarded as a means to prevent inflation, but also as a form of insurance to prevent war and natural disasters. Unlike banknotes, gold is an effective medium of value exchange no matter what social environment or country it is in. It is a hard currency that is not affected by the local social system and economic environment at that time. Political turmoil and continuous wars in the international community will eventually affect gold production and reduce gold supply, causing gold prices to rise. Of course, there are also cases where political instability has caused a large number of investors to abandon other investment tools and turn to gold as investment hedging agents, thereby expanding demand and stimulating a continued rise in gold prices. For example, the Second World War, the Middle East War from 1977 to 1978, the Iranian Revolution in 1979, the Afghan War in 1980, the Iran-Contra incident in 1986 and the assassination of US President Ronald Reagan, the Gulf War, especially on September 11, 2001. The terrorist incidents in the United States and the subsequent war launched by the United States against the Taliban in Afghanistan have caused the price of gold to rise sharply in a short period of time.
11. Everyone agrees and needs to be calm
Experience shows that when all market opinions are highly consistent, it is often the eve of a reversal in the market trend. Investors need to remain calm regarding the market's highly consistent speech tendencies, especially when the price of gold falls sharply and hits new lows repeatedly. They must also think calmly. The price of gold continues to rise and hit new highs repeatedly. Investors need to be cautious when placing orders. From these comments Analyze the components of losing your mind. Make correct thinking to make your operations continuously profitable.
12. Follow the trend and increase your profit limit
The purpose of our participation in personal paper gold investment transactions is to seek profit, not to seek fame. The praise of others may not bring us success. The slightest gain. When some investors are trading with the trend, it is easy to get carried away by the temporary victory in front of them, forgetting that the price of gold moves up and down. What goes up must come down, and a correction is inevitable after a big rise. If you cannot protect the immediate benefits, you will easily be disappointed by the sharp correction in gold prices. It is very difficult to judge the bottom and top of the market. Even professional analysts can often draw a definite conclusion only after the bottom or top is formed. Therefore, this kind of judgment is even more difficult for us ordinary investors. The only way is to gradually increase the take-profit price after correctly judging the rising trend, and work step by step to protect the immediate benefits that have been obtained.
13. It should rise or not, it may fall
Sometimes when good economic data or news is released, the gold price is not affected by the news and starts to rise sharply, but only slightly. The rise may even fall. Once good or bad news appears, it will cause a sharp decline in gold prices.
This shows that the focus of the market has shifted. The market has a focus in each period. Before this focus is replaced by another new focus, any good economic data that has nothing to do with this focus may be replaced by a new focus. ignored by the market. The gold market is often a weird mixture of numbness and sensitivity, rationality and blindness. Only by changing with the changes in market mentality can we understand what the market is doing.
14. Don’t forget the law of time
The U.S. dollar is more likely to rise than fall from March to September every year. The gold market during this period is more likely to fall than rise; every year From October to February of the following year, prices are more likely to fall than rise. The gold market during this period is more likely to rise than fall.
15. Market comments, careful analysis
The comments and analyzes of the gold market can be said to be different. Since the institutions that publish these analyzes are different, we need to adopt different methods to obtain useful information. News media such as Reuters, Dow Jones, Bloomberg, etc., due to their extensive and timely sources of information, most market reports are published after comprehensive market information and have great reference value. Financial institutions, such as banks and investment funds, are highly inductive and often release information for their own benefit, and their analysis requires careful thinking. Professional consulting service organizations, such as Paper Gold Network, have certain reference value and high accuracy. You can refer to their analysis methods to improve your own level. But don’t be blindly superstitious. Newspapers and magazines are channels for obtaining macroeconomic information. Some analysis and suggestions are mostly ambiguous words, which need to be reprocessed and combined with reality to make judgments.
16. Don’t force the market to change
Some investors impose their own ideas on the market and always think what the market should be. Once the market direction is different from their own judgment, , and they jump to the conclusion that the market is wrong and cannot be understood.