For ordinary investors, why is spot gold better in the short term than in the long term?

Gold investment/


Spot gold trading in the market, according to the different investment needs of investors, can be divided into many ways. Among them, short-term trading and long-term trading are distinguished according to the different investment trading cycle of investors. However, long-term spot gold investment is not very suitable for most ordinary investors. On the contrary, short-term spot gold investment is better for everyone. Why on earth? Let's talk about it today


1. Short term investment requires less capital than long term investment


First of all, the reason why spot gold is more suitable for public investors in the short term is that when we make short-term investment, the capital requirement is often lower than that in the long term. Although long-term investment can also bring profits to investors, for investors with little spare money, long-term investment has a fatal disadvantage, that is, when the amount of capital you invest is not large enough, it is not only difficult to generate considerable income, but also often the stop loss is much higher than short-term trading. If your investment capital is not abundant, it will greatly affect your investment The utilization rate of funds will also be greatly reduced in the distribution of funds. Therefore, for ordinary investors, it is better to do short-term spot gold with lower capital demand threshold, and the investment efficiency will be higher.


2. Do spot gold long-term experience requires higher


Another reason why ordinary investors are not recommended to do long-term is that they often do long-term spot gold, which requires high foresight of investors' trading vision and market prediction. Most ordinary investors may just want to invest and manage money in their spare time. They do not have a deep understanding of professional investment knowledge and theory, and they do not have the experience and trading vision to make long-term investment. In this way, ordinary investors will naturally have a great disadvantage in making long-term investment, and the income will be lower.


On the contrary, we only need to make short-term spot gold orders according to the short-term unilateral market trend. We don't need to spend too much energy and time, and the accuracy of making orders is also higher. Especially for novice investors, such a short-term single is more conducive to cultivate their own sense of the market, in the stable harvest of profits at the same time accumulate trading experience.


In general, for ordinary investors, why is spot gold better in the short term than in the long term? This is mainly because short-term investment in spot gold requires less capital and experience than long-term investment. As long as you pay attention to the latest international developments in your spare time, you can make stable profits with the help of short-term unilateral market quotations and gain considerable profits in a short time


[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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