Single Morning Gold: Is Point or Direction Important in Spot Gold Trading?

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Single Morning Gold: SpotgoldIs position important or direction important in trading?


Those who can buy are beginners, and those who can sell are experienced. It doesn't mean that those who can sell are much smarter than those who can buy, but rather that there are far more people who specialize in researching entry points than entry points. No matter where you enter the field, if you can grasp the entrance well, you can at least avoid losing money. Recently, many people have asked the same question to Dan Chenjin: is location important or direction important?

Firstly, let's take a look at several stages. The more successful an analyst is, the more powerful their selection of trading entry points will be. It should be noted that the so-called trading position refers to the entry point and exit point.


Secondly, let's take a look at the learning stage of trading direction. The so-called trading direction refers to the position direction determined by the market's rise, fall, or sideways trend, with only two positions: long and short. When a trader is obsessed with judging the direction of the market, the predictive ability he pursues may not even be as good as his initial judgment of the market direction. This is a characteristic after a critical point in time, specifically the intersection of the actual skill level curve and the expected skill level curve. Gann's final bankruptcy was caused by crossing this point. Many writers of stock market books are not real traders, at least not successful investors, so they often use the blind confidence of the public to let them learn and master an impossible technique - predicting market direction! In fact, there are only two directions, and everything is just stuck in the right quagmire.


In the long run, learning trading position is more profitable than learning trading direction (note that it is not said that trading position is more important than trading direction, both are equally important). Trading positions are divided into entry and exit positions, and trading profits and losses depend on the selection of entry and exit highlights. The market is moving forward in waves. We assume that the market is currently rising in waves. If you buy at the top of the wave and sell at the bottom of the wave, although the market is trending upwards, you are likely to lose money because you have chosen poor entry and exit points; If you buy at the top of the previous wave and sell after the new wave surpasses the previous wave, then although you have a poor entry point, your exit point is good. If you can buy at the bottom of the previous wave and sell at the top of the next wave, then you have a good entry point and also a good exit point. 'Appearing' involves more of a 'defensive issue' - timely exit when trading errors occur, timely exit when the market turns, reduce losses, and maintain profits; And 'entry' involves more of an offensive issue.

Going with the flow, everyone knows, the key is how to go with the flow. The simplest answer is: "Cut off losses and let profits soar! Dan Chenjin likes to study international situations and hot events, and is interested in commodities andforeign exchangeGold, silver,crude oilfuturesThe Hang Seng Index has conducted in-depth research. If you are a beginner, I can teach you techniques, cultivate good order making habits, and take you on a long-term stable and profitable path. If you are an old hand, I can correct your bad habit of doing singles and provide psychological counseling to help you make back the losses. If you are a undefeated general, then we can also spar together and explore becoming like-minded good friends.


Author of this article: Shan Chenjin (financial self media person)


Author's message: The purest financial management, the highest level of enjoyment!


Official account: Shan ChenjinV-Letter:scj366


The above content is for reference only. Investment carries risks and caution is required when entering the market.