Friends who pay attention to the past articles of this column will find that, in fact, the editor believes that fund management is very important, even more important than technical analysis to find entry opportunities. In fund management, position control is a great science. In London gold investment, position control is related to our profit and loss, and even our entire investment career. Next, let's talk about the method of controlling positions in London gold investment.
Fund management is a very important link in the London gold investment process, because once the heavy position is traded, the maintenance margin is not enough, and the position may be forcibly closed, so the size of the position is controlled, and the risk prevention method is implemented in the position management process. Only by effectively controlling the risk within the acceptable range of investors. When the London gold market is against the trend, long-short investors should reduce their positions appropriately to avoid the huge risks brought about by the market going all the way down, because when their positions are too heavy, their asset losses will greatly exceed those of investors with smaller positions.
No matter if you are long or short, when the development direction of the London gold market is driven by an unfavorable direction and confirmed by technical indicators, you must leave the market decisively. Some investors like to lock up positions, lock in the original profit or avoid further expansion of losses, and then wait and see. The main purpose of lightening or lightly entering the market is to ensure sufficient trading funds for customers and improve the ability to resist risks.
Regarding the position control of London gold investment, in fact, personal mentality also has a great influence. When we are in short-term operations, it is generally good to be able to make a profit of more than US$5, but human nature is always greedy. After making a profit, we will continue to increase positions or replenish orders based on psychological and subjective feelings. As a result, when the market reverses, we fail to exit in time, resulting in the loss of original profits, and even some profits turn into losses. Therefore, in controlling positions in London gold investment, we must also consider the issue of investor psychology.