Forecasts of market prices include two of the most mainstream analytical methods: basic analysis and technical analysis.
Basic analysis studies the causes of gold prices, influencing factors to predict the direction of gold prices. The subject of the transaction is the study itself. The technical analysis is to study the price chart, and the corresponding technical indicators to judge the price trend, which studies the trading behavior of the trader. The first method is less operative for medium and small investors, and it is impossible to determine the specific trading time and location. The second method is more useful for small and medium investors, and it is also the analysis method we mainly rely on. But it requires a certain amount of experience to accumulate.
However, in the specific operation, only the above two methods are not enough, and there must be an operational strategy that matches them. We often say that someone has their own set of things. In fact, a big part is referring to his trading strategy.
Investors are influenced by many factors, such as the reliability of information sources, timeliness, comprehensiveness, comprehensive analysis of information, personal physical condition, mood, financial status, investment plan, profit and loss status. The environment and so on can affect the investor's judgment on the market. Therefore, as long as it is human beings, it is possible to make mistakes in the judgment of the market. The world's famous fund managers have countless mistakes in their investment records, but they have not made strategic mistakes. Therefore, the funds they lead can still grow at a higher rate.
Some people say that people who know technical analysis can often make money, but a mistake can be overwhelmed by the whole army, but a person who can make a good investment strategy may often have some small losses, but can make big money in a few transactions. It's a good point, no matter how to emphasize the investment strategy, it can't be overemphasized, and it has received immediate results. Therefore, for investors who are new to the market, the strategy is to protect themselves from investing the most effective weapons, and for experienced investors, there will be a deeper understanding of the strategy.
In the gold investment, what we are fighting for is only two ratios:
1. The ratio of the correct number of times and the number of errors in the transaction.
2. The ratio of the amount of loss to the amount of profit in each transaction.
The face is:
1. Controllable by yourself: the use of funds, the choice of time to enter and exit.
2. their own uncontrollable: changes in the market.
Therefore, our trading strategy is to focus on or develop and formulate the above two aspects, so we divide the trading strategy into:
1. Trading direction: taking advantage of the trend
2. Fund management
3. Treatment of loss prevention and loss prevention
4. Processing after profit