What are the disadvantages of breakthrough investment in spot gold investment
Unless you have patience and determination, it is difficult to trade against the breakthrough trend. The frequency of false breakthroughs is high. Although the success rate of this type of transaction is very low, as long as it is successful, the profit margin is often very considerable.
Therefore, even if 80% of the transactions fail, the overall performance may still be profitable. So, what are the disadvantages of spot gold investment breakthrough entry?
If you can choose carefully and wait patiently for a clearer entry point, you may be able to increase the success rate of the transaction. Observing the changes in trading volume, using the swing indicator together, using a longer-term trend chart, and waiting for the reentry trend after the breakthrough, these methods can improve the odds.
Aiming at the market you are familiar with, it is definitely helpful to analyze which type of breakthrough has a higher success rate.
Unexpected breakthrough, the effect is usually the best. If a certain support is very strong, everyone expects that the price of gold will rebound here, but the result is an unexpected fall, forcing most traders to appear or switch positions, the result will increase the decline after the breakthrough.
Open http://t2.mademoney.net, then click whatsapp account +917406391776 to add teachers. A simple greeting may open the door to wealth.
Conversely, if everyone decides that a certain level can definitely be broken through, they will also create a site in advance. As a result, at the time of the actual breakthrough, there was no remaining power in the market to drive the trend after the breakthrough.
Trap of breaking trend: 1. Ignore the relationship between risk and reward, do not really understand where the key price is, and trade against the main trend direction; when a false breakthrough is encountered, do not know the end position immediately; the breakthrough is expected to be successful before it has occurred.
2. When the breakthrough trend fails, he is unwilling to claim compensation in time; he did not measure the target price after the breakthrough; after missing the first wave of gold trend, he entered the market too slowly; if the entry price is not ideal, he did not expect the stop point to be too far away.
3. There is no patience to wait for the reentry trend; trapped in the retracement trend; chasing the price, once the gold market retreats and reorganizes, it is easy to cause major losses (at least temporarily); unable to carefully select entry points, it is easy to cause excessive frequent transactions problem.
Therefore, even if 80% of the transactions fail, the overall performance may still be profitable. So, what are the disadvantages of spot gold investment breakthrough entry?
If you can choose carefully and wait patiently for a clearer entry point, you may be able to increase the success rate of the transaction. Observing the changes in trading volume, using the swing indicator together, using a longer-term trend chart, and waiting for the reentry trend after the breakthrough, these methods can improve the odds.
Aiming at the market you are familiar with, it is definitely helpful to analyze which type of breakthrough has a higher success rate.
Unexpected breakthrough, the effect is usually the best. If a certain support is very strong, everyone expects that the price of gold will rebound here, but the result is an unexpected fall, forcing most traders to appear or switch positions, the result will increase the decline after the breakthrough.
Open http://t2.mademoney.net, then click whatsapp account +917406391776 to add teachers. A simple greeting may open the door to wealth.
Conversely, if everyone decides that a certain level can definitely be broken through, they will also create a site in advance. As a result, at the time of the actual breakthrough, there was no remaining power in the market to drive the trend after the breakthrough.
Trap of breaking trend: 1. Ignore the relationship between risk and reward, do not really understand where the key price is, and trade against the main trend direction; when a false breakthrough is encountered, do not know the end position immediately; the breakthrough is expected to be successful before it has occurred.
2. When the breakthrough trend fails, he is unwilling to claim compensation in time; he did not measure the target price after the breakthrough; after missing the first wave of gold trend, he entered the market too slowly; if the entry price is not ideal, he did not expect the stop point to be too far away.
3. There is no patience to wait for the reentry trend; trapped in the retracement trend; chasing the price, once the gold market retreats and reorganizes, it is easy to cause major losses (at least temporarily); unable to carefully select entry points, it is easy to cause excessive frequent transactions problem.
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