What are the advantages of gold over stocks in making money?

On Jin at this moment:goldWhat are the advantages of making money from stocks?


With the continuous rise of gold prices in recent years, gold investment has increasingly entered the vision of ordinary investors, and speculation in gold has become another investment hotspot that many investors are concerned about. So, as an experienced stock investor who has been riding the stock market for many years, why would you pay attention to gold? What preparations do I need to make to enter the gold market and participate in gold investment? What other issues do you need to pay attention to?


Gold, like stocks and securities, is an investment type in the financial capital market. Its investment methods and analytical approaches share many similarities. However, due to differences in trading mechanisms and market categories, when investors participate in gold speculation with their inherent experience and habits, they may find that what should have been simpler becomes more complex, and even result in many unnecessary losses. This is not to say that investing in gold carries greater risks, but rather that we haven't truly understood it. Therefore, investors need to differentiate and learn based on their own situation before entering the gold market trading, which can help them better leverage their advantages and achieve good investment performance.


Old stock investors, especially those who have experienced the ups and downs of the stock market for more than a decade, have a profound understanding that only a few have truly outperformed the market and made money in stock trading for many years. Seven losses, two balances, and one profit are a true reflection of ordinary stock investors. Stock trading is simple, it's all about buying low and selling high, but it's only when you're in it that you realize the stock market is like a tiger. It's not easy for a tiger to forage for food?


There are too many factors that affect stock prices, and the country's fiscal, tax, and industrial policies determine the direction of the market; The issuance, regulation, and changes in market funds directly determine the driving force of the market; The operation and development of enterprises behind every stock are full of variables, and adhering to value investing may not necessarily result in good returns; Funds, institutions, and market makers of all sizes can easily manipulate certain stocks; Market rumors and hearsay can also elevate stocks to heaven or plunge them into hell.


Secondly, the stock market is a typical zero sum market, and the money you earn must come from someone else's pocket. In a world where the law of the jungle prevails, who can guarantee that they will always be the winner? Most stock investors are in a weak position, going to great lengths every day to analyze the market, search for good stocks, and study the main trends, hoping to get a share of the pie. However, they are often deceived and exploited, and can only get used to being trapped, untied, and comforted: if necessary, become a shareholder.


Compared to the stock market, the gold market appears much simpler.


Firstly, the gold market is a global market, with the London gold market setting prices twice a day as the benchmark for gold markets around the world24Hourly trading, forming a continuous and unified international gold price. Due to the lack of pricing dominance in the domestic market, paper gold and gold in ChinafuturesAlthough spot gold and other commodities on the Gold Exchange are quoted in RMB per gram, they are mostly converted in real-time based on international gold prices. Therefore, when we invest in gold, regardless of which investment product we choose, we are facing the same price system. There is no need to sift through hundreds or thousands of stocks and swap them for stocks, trading gold is equivalent to trading the world's largest stock.


Secondly, the gold market belongs to the category of commodity markets, but as gold is a special commodity with monetary attributes, its market price is not only influenced by basic supply and demand factors, but also by the international economic and political situation, changes in the international financial situation, and other related capital markets, just like other financial capital markets. Therefore, various factors that affect the fluctuation of gold prices are open, transparent, and relatively simple, and investors can query and grasp relevant economic data and financial information at any time. We no longer have to face various aspects of domestic policies and market changes, as well as massive amounts of corporate reports and complex information, especially the numerous true and false insider information, rumors, and black mouth misleading, like stock trading.


In addition, the price of gold is relatively fair and objective. Due to the mutual influence and restraint of the global market, the daily trading volume of spot, futures, and other derivatives of gold reaches tens of trillions of dollars. No fund or institution has the ability to manipulate this market, let alone engage in market manipulation. Therefore, there is no need to worry about the issue of gold prices being artificially manipulated in gold speculation.


Compared to the 20-year development history of the domestic securities market, the formation and development of the international gold market has a history of over a hundred years, and its trading mode, rules and regulations are more mature and perfect. Due to its unique dual nature, the price of gold has the functions of hedging and preserving value, and is much less risky compared to paper currency. In recent years, facing global economic turbulence and inflation expectations, the investment demand for gold has become increasingly strong. The bull market for gold has continued for ten years and is still considered a long-term prospect. From the perspective of value investing, it is also necessary to make certain allocations.


From the perspective of investor participation and investment operations, gold speculation also has many advantages in terms of trading mechanisms.


In terms of international mainstream investment product gold spot margin trading:T+0Bidirectional long short trading, margin leverage tools, continuous quoting mechanism for market makers, and24Advanced trading mechanisms such as hourly trading are not available to us stock traders.


The stock market isT+1The trading system means that stocks bought today can only be sold tomorrow. For example, if there is a bearish trend after buying, they can only be sold the next day. If they continue to hit the limit down, they can only be considered unlucky. Investors can only passively accept intraday price fluctuations, which greatly reduces the efficiency of fund utilization and is very inconvenient for short-term investors. gold marketT+0Trading can be done countless times on the same day, and even if important information is released at night, investment decisions can be made immediately, unlike the stock market that has to wait until tomorrow to open. This greatly reduces risks and provides investors with more investment opportunities.


Buying stocks can only be operated in one direction, buying first and then selling. If the stock falls, it can only be trapped. Either you have to endure the pain and cut the meat, or wait for the price to rise to release the trap. This can easily result in losses and waste time costs. The two-way trading of gold provides investors with the option to go long or short, and there is a chance to profit from both price fluctuations, avoiding the pain of being trapped.


The funds required to buy stocks are fully invested, and the returns generated per unit cost cannot be amplified. The margin system in gold trading provides investors with a certain leverage tool for using investment funds. In the form of a predetermined margin ratio, the funds can be magnified several times, and investors can use a small amount of funds to gain greater returns. Of course, there is also risk involved in being simultaneously amplified by leverage, and investors can choose the appropriate amplification ratio through fund management.


The stock trading mechanism is a centralized matching of transactions by the exchange, based on the principles of price priority and time priority. Buying and selling stocks must have the price and quantity of the counterparty in order to be traded. This brings liquidity risk to investors, as stocks are often difficult to trade and miss opportunities when they are sought after or suppressed by major players. Encountering limit ups and downs makes it difficult to buy and sell; International spot gold represented by London gold and domestic spot gold represented by Tiantong gold are both market makers, using continuous quoting. As long as there is a price, it can be bought or sold immediately without being limited by price or time priority. In addition, spot gold trading is not subject to restrictions similar to stock limit up and limit down. The trading platform provides a take win and stop loss function, allowing investors to set reasonable take win and stop loss prices based on their risk tolerance, making it more flexible and convenient.


Stocks are traded during the trading hours of the exchange, with only a fixed four hour trading time per day. This is indeed inconvenient for non professional investors, as they have to worry about losing their bonuses while trading stocks at work. If you speculate in gold, there is no such worry. International gold prices24Continuous operation at any time, able to seize every investment opportunity based on market information changes. Moreover, the evening leisure time is the trading period of the American market, where gold prices fluctuate the most actively, making it a perfect opportunity for office workers to showcase their skills.


Stock trading and gold trading each have their own characteristics, and as financial management and investment allocation, the two are not contradictory. But for small and medium-sized investors, investing in gold is much more reliable. Investors can choose and match based on their own economic situation, financial strength, and risk preferences, and make necessary preparations before entering the gold market.

Message:

The two most important aspects of investing are: first, understanding how to analyze a market trend; The second is to know how to control risks. As an investor, one should have a good mentality and correct investment concepts; Positive people see an opportunity in every crisis, while negative people see some kind of crisis in every opportunity; In the face of volatile market conditions, we must seize every opportunity. Seizing an opportunity is equivalent to seizing tomorrow!

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