ASIC and NFARegulated by ASIC and NFA

What stop loss techniques are used to invest in gold futures

Post Time:2020-01-07 10:38:51  By:BG

  When it comes to gold, you may think of money. Yes, money, who doesn't love, not to mention the old money and gold. Due to the great collection value of gold and the fact that gold is a currency that will not expire, gold futures have been particularly hot in recent years. In fact, gold futures are investment in gold, that is, the so-called low in and high out. Ordinary people can buy gold and collect it even if they don't invest. When its price rises, they are selling it to earn the difference in the middle. And gold futures is also the principle of investment, but it is more systematic and formal, and its return will be higher, but at the same time it also has higher risk. Since gold futures are prone to higher risks, it naturally needs to be damaged to prevent or reduce losses. Then there is a professional word for this behavior in the investment community, which is called stop loss. Stop loss, as the name implies, is to stop loss. They all say that if you walk by the river, you will not get wet. Since we choose to invest in gold futures, we will encounter certain risks. At this time, we need to use some stop loss techniques to reduce the loss. So today we will introduce some stop loss techniques of gold futures.

  When we talk about stop loss techniques of gold futures, let's first talk about why we should have such a sense of prevention. First of all, we should know that gold futures are facing the international market, not the domestic market. If it's the domestic market, then the market opening is more in line with our work and rest time. But if it's the international market, the most active time for trading in the whole market is at midnight Beijing time. If there is no certain stop loss technique, in case of any turbulence when you fall asleep, then your earnings and even the principal will flow like water, So we need some stop loss techniques to prevent risks.
  So the first method for stop loss technique of gold futures is relatively simple and suitable for novices, that is, fixed stop loss method. This method is to set your own stop loss quota. This method may not make your income so much, but it is insured, if there is any emergency, the loss will not be too heavy. So it's especially suitable for new players who just started to play futures, or some more conservative players. Then the second method is more suitable for those experienced players, because this method is to calculate by itself and finally determine the stop loss amount. So we can use this method, but we need to have some analysis and calculation ability for the data, and finally we can make this method effective. In addition, we can judge by the trend in the first five minutes before closing. If the trend is good, we can rest assured. Otherwise, we should be vigilant.

BGNote: all opinions, news, research, analysis, prices or other data in this article are for general market commentary only and do not constitute investment advice. This site will not bear any loss or damage that may be caused by the direct or indirect use or reliance on the above data, including but not limited to any profit loss. All investments involve some degree of risk.