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Many investment friends ask me about investment. Any investment has corresponding risks. It cannot be risk-free, and spot silver speculation is no exception. Risk should be the first factor we need to consider when making investments.
The author will introduce to you several common position management methods in the spot copper market:
The first type: enter the market with a large position at the beginning. If the market goes in the opposite direction, no additional positions will be added. If the direction is the same, the position will not be increased. , you can gradually add positions, but the proportion of adding positions will gradually decrease. This is the pyramid position management method often used in spot silver.
Advantages: Follow the trend, the clearer the trend, the higher the winning rate, the higher the position used at the same time, the higher the profit, and the safety of funds is guaranteed.
Disadvantages: In a volatile market, it is more difficult to make profits, and the initial opening of a position is relatively large, so the requirements for first entry are relatively high.
The second type: the position you enter is small at the beginning. If the market moves in the opposite direction, change the direction and gradually add more positions, amortize the cost, and the proportion of added positions will continue to increase. This method is the funnel-shaped position management method often used in spot silver.
Advantages: The initial risk is relatively small. Without liquidating the position, the higher the funnel, the more substantial the profit.
Disadvantages: This method is generally based on the premise of judging the future trend of the general trend and buying when the general trend pulls back. In this kind of position management, once the reverse trend occurs, the larger the position will be, and the higher the risk will be. If the market outlook is as predicted before, there will be considerable profits. The formation of a unilateral opposite trend will lead to liquidation.
The third type: the amount of funds entering the market at the beginning accounts for a fixed proportion of the total funds. If the market develops in the opposite direction, gradually increase the position to even out the cost. The increase in position will also follow this fixed proportion. This The first method is the rectangular position management method often used in spot silver.
Advantages: Each time you add a position, it is a fixed position, and the cost of holding the position gradually increases. The risks are evenly shared and managed on an average basis. When positions can be controlled and the direction of the market outlook is consistent with judgment, huge profits will be obtained.
Disadvantages: In the initial stage, costs rise relatively quickly. The more reverse the trend, the larger the position. If a unilateral position is formed, there is a chance of liquidation.
Spot crude oil investment has the advantages of small and large, uninterrupted trading, and two-way trading, attracting more and more investors. At the same time, its leverage is also standard with high returns and high risks. As novice investors, we should strictly lay down the basic skills when investing in spot crude oil. No matter what job you are doing, you must learn relevant professional knowledge. Especially for novices in crude oil investment, when they first enter the crude oil market, they must be well aware of the four misunderstandings in crude oil operations to prevent them from falling into the quagmire of crude oil operations.
This article Jinyumancheng summarizes some mistakes that most investors have made, hoping to be helpful to everyone (especially novices).
.No awareness of risk control.
The ultimate goal of our investment is to make money. However, in order to make money in the investment market, you must first have principal. Then we must ensure that our principal does not shrink as much as possible, so that we will have more opportunities to earn profits. Then we must learn to control risks, protect our principal, and then look for opportunities to make money. If our principal is casually finished in a few moments, then what is the point of making money?