What are the reasons for gold speculation?
What are the reasons for gold speculation? What is gold speculation? It refers to the situation that the customer's rights and interests in the investor's performance deposit account are negative under some special conditions. When the market changes greatly, if most of the funds in the investor's performance deposit account are occupied by the transaction performance deposit, and the transaction direction is opposite to the market trend, it is easy to burst due to the leverage effect of the performance deposit transaction.
In recent years, due to the global economic downturn and negative interest rates, gold has become an important safe haven asset. However, gold investment is good, but there are still a lot of investors in the loss, the most painful thing for investors is the burst of positions. Sometimes, due to the volatility of the gold market, investors' positions are too heavy, and they are accidentally burst.
If the burst leads to a deficit and is caused by investors, investors need to make up the deficit, otherwise they will face legal recourse. Experts said that most of the burst was related to improper fund management. In order to avoid this situation, we need to control the position, manage the fund reasonably, and avoid the full position operation in stock trading.
How to avoid such a serious consequence? First of all, we need to know the reasons for the explosion.
What are the reasons for gold speculation?
1. The position is too heavy
This is the main reason for the burst of positions. With a large proportion of leverage, the ability to resist risks is very poor. Its emergence is the thought of eager for quick success and instant benefit and sudden wealth. Some people burst because the warehouse is too heavy, but others will burst even if the warehouse is too light. The reason is "frequent in and out, excessive trading". From the psychological point of view, there is no plan, eager to turn over the book, to make a random order, to make a mood is very bad, the odds are very high, like a blunt knife to cut the meat, bit by bit to cut away, burst.
2. He refused to admit his mistake
Once the direction is wrong, you can't make a quick decision. Instead, you have to fight until you burst the position and put your life into it. Then you have to be forced to close the position. He never bumps into the south wall and never looks back. He also boasts that there are tigers in the mountains of the Ming Dynasty, who prefer to travel on the mountain of the tiger. "A man is a man who stands up to heaven and looks down on death as if he had returned home.". I don't know that we come to this market to make money, not to stand up and save the beautiful. No one will be able to get by with the money. The warehouse has been stormed and nothing can stand up. We should learn to survive at break even before we consider how to make money.
3. No stop loss
Many people because there is no stop loss and storm positions, the reason, one is the psychological barrier, and then is the technical factor. The psychological obstacle is mainly reflected in the fluke mentality. Once you open your position, you can wait with no stop loss. It's like tying yourself to a car that has no brake system and will overturn at any time. Fortunately, you hope that the price will move in the direction of your opening position.
But speculation is not gambling, luck and luck can not always be with you, to stable profits, or rely on their real strength. The market has its own rules of operation, which are not transferred by anyone's will. Therefore, the bad trading habit of fluke psychology should be eradicated in its own trading behavior as soon as possible, otherwise it will cause endless trouble.
4. Blind tracking
There are many friends in the forum who blindly follow others' orders and operate without their own opinions, which leads to the burst of positions. The reasons are as follows: first, they are not confident in themselves and have bad trading habits of listening to news; second, they have blind worship of masters. Masters are market forecasters. Due to the uncertainty of speculative market, no one can stably predict every important market turn or market fluctuation, and masters are no exception.
[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