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Choosing entry points is crucial in spot investment. Without a good start, one cannot expect good results. The quality of the entry point directly affects the size of the stop loss position. If the entry point is not good, it will lead to excessive stop loss, resulting in a decrease in the overall break even ratio.
In gold trading, most investors are affected by the ups and downs of the market, sticking to their original intention and always doing what they want. Although what they say may seem simple, there is very little they can do. This is why most people in the market are losing money. There is a misconception in short-term trading: short selling is afraid of rising, long selling is afraid of falling. Everyone should know that no one can long at the lowest position and short at the highest position every time, In the short term, there will be some fluctuations, but most people focus on the market. When the market is running in the opposite direction to the entry direction and has not reached the stop loss level, they blindly worry that it will only change the original intention. Frequent exits and entries will only increase the stop loss. Therefore, principle is important. According to the initial strategy, if the market has not reached the stop loss level, hold firmly. Once the market breaks through or falls below resistance and support, adjust the strategy in the short term in a timely manner, Follow up on the trend.
Wen/Shi Wanjin (guidance letter:swj178 )
(Disclaimer: The above analysis only represents the author's personal views and does not constitute specific operational suggestions. Based on this, we will be responsible for our own profits and losses, investment risks, and caution should be exercised when entering the market.)