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Getting started, personal agent
Since the Brexit referendum on March 1, the price of silver futures has increased by more than %, while the price of gold futures has increased by about .%, and silver’s performance has been better than that of others. Sister metal gold, after Friday's sharply negative non-agricultural data, silver was still able to rise strongly after a short fall. It has to be said that the market's bullish sentiment is still high
We know that while the price of silver is rising steadily, the intraday fluctuation range It is also unusually large. One of the main reasons for its large price fluctuations is well known, that is, the trading volume of silver is much less than that of gold, so its price is more volatile, and its fluctuations are often exaggerated.
In addition, unlike gold, silver is widely used in industrial production, so it can fluctuate with gold prices in scenarios such as risk-oriented price fluctuations, and can also follow copper prices when physical demand is high, etc. Price fluctuations in industrial metals.
In the opinion of the reporter, despite this, in the long run, silver's precious metal, safe haven and other characteristics still outperform its industrial use, so after the Brexit incident, silver should continue to outperform gold, and this is such as Industrial metals such as copper cannot match.
The reporter learned that in China, the demand for silver is particularly strong. On Monday, the most actively traded silver futures contract opened up 1%, marking its largest single-day gain. Meanwhile, part of the reason for the heating up in the silver market may be the depreciation of the Chinese yuan.
In fact, the gold to silver ratio is currently approximately. In other words, one ounce of gold is worth approximately as much as an ounce of silver. This ratio can be used to determine when to buy or sell precious metals.
International financial institutions agree that the average value of this ratio is approximately, that is, if the price of gold is US dollars per ounce, then the price of silver should reach US dollars based on the ratio of left and right.
In the author’s opinion, this situation is most likely to occur in the middle of the month after the US presidential election. Historically, this ratio has fluctuated around the level of market panic. The dust will not settle until after the election. Here, the author suggests that everyone can buy silver at low prices near the U.S. dollar
One of the misunderstandings
Stop loss Most novices who are new to speculation will generally learn this after suffering huge losses due to not stopping the loss. Lesson learned, regarding stop loss as a strict discipline, it went to the other extreme and fell into a new misunderstanding of stop loss. The consequences of arbitrary stop loss are obvious. No account can withstand long-term and continuous stop loss. Faced with the ever-increasing loss of account equity, investors often return to the old path of not stopping losses, and repeatedly swing between stop loss and stop loss. Investors need to think beyond stop loss and no stop loss in order to find the answer to the problem. What is the purpose of stop loss? The purpose of stop loss is to control risk, but it must be understood that stop loss is not the only means of controlling risk. There are all kinds of traps in the speculative maze, and the mistakes we make and the risks we face are also all kinds. Only by clearing the source, fundamentally making fewer mistakes and taking fewer risks can we reduce the number of stop losses. Only in this way can every stop loss be necessary and worthwhile, rather than unnecessary and self-harming.
Area 2
Why is it wrong to stop loss and not stop loss? As long as the operation is done, there will be right and wrong. It is natural to make a profit if you do it right, but what if you make a mistake? The only option after making a mistake in the spot crude oil market is to immediately admit the mistake and correct it, and stop loss is the main means of admitting and correcting the mistake. Any transaction should not be regarded as a desperate gamble, but a molecule in the game of probability. Failure to perform stop-loss operations means that you are unwilling or do not have the courage to admit your mistakes. Subconsciously, you may think that you will not make mistakes, or you may be lucky. According to Murphy's law, if something is likely to go bad, then this possibility will become a reality, small mistakes will turn into big mistakes, small losses will turn into big losses, and eventually become out of control. To put it another way, every investor will not live long and spend most of his time waiting for a losing position to turn into a profit. Each investor's capital is limited and cannot support unlimited losses. Investors who do not correct their mistakes are obviously ready to live another year and have dug a tunnel to Fort Knox (the place where the United States reserves crude oil). Stop loss may be a new mistake, just maybe, but stop loss is definitely a mistake. It's the lesser of two evils. Although most people are unwilling to bear certain losses, considering the limited time and funds, it is obviously a wise move to exchange small local losses for overall initiative.