Trading gold and silver can make you a fortune. The finest way to trade gold, silver or other precious metals is to trade futures contract. Now, trading sap 顧問 can be risky. Futures contracts move speedy and show a lot of volatility. Traders profit from this volatility. But, if you are not comfortable with threat then you can preserve on trading gold and silver ETFs like the SPDR Gold Shares (GLD) or the iShares Silver Trust (SLV) and other valuable metals ETFs. But the point is this that any individual can understand futures trading and profitably trade gold and silver futures contracts.
Let’s illustrate this precious metals trading strategy with an example. A gold futures contract consists of 100 ounces. Now, the margin specifications can vary from a single broker to a different but it is typically around $5,000. This indicates you can handle one hundred ounces of gold with $five,000. Each and every point the gold futures contract moves up or down, you make $10 or drop $ten. Suppose, you bought the gold futures contract and it moved up by 50 points. You make $500 less the commission and other costs).
Let’s get back to our gold trading approach. Suppose, you get a single gold futures contract that means 100 ounces of gold. It closes up by 30 points in the subsequent few days. You are pleased. By the finish of the week, it gains yet another 20 points. You sell your gold futures contract. So, with this one gold futures contract you have made 50 points. That implies $500. This is your initial trade in a series of 4 trades.
Now, you make your second trade by buying two gold contracts as the gold marketplace is in an uptrend and you are confident that it will continue to do so for the brief term. You wait for a few days and the contract is up by 50 points by the end of the week. You sell your two contracts and take profit of $1,000. You have just completed the second trade in your series of 4 trades.
Next week you purchase three contracts. Rumors are flying about gold prices increasing once more. You want to profit from it. This time, the contract goes up by one hundred points. You sell your 3 contracts and understand your profit of $three,000. This is the third trade in a series of four trades.
Suddenly gold costs drop like that did a couple of days back. You are shocked. But do not worry this is the way markets function. You wait for a couple of days and the prices once again start climbing. You obtain 4 gold futures contracts this time. You wait a handful of days prior to the contracts every move 50 points. You sell all the four contracts making a nice $two,000. This was the fourth trade in a series of 4 trades.
Your net profit is $500+$1,000+$3,000+$two,000=$6,500! Not bad! Now, you will get started all over once again with a new series of four trades repeating what you did above.
You can make these four trades once again and once again starting from scratch soon after each and every 4 trades. Following every single 4 trades, you get rid of the profit and start off once more tiny. This way, you lessen your danger of losing all your profits if the market suddenly moves against you. This is how professional gold traders trade and this is how you need to trade. You will have to have observed that their is nothing much in this gold trading tactic. That is what it is and that is how you must preserve it!