What are the spot trading skills? How can spot trading be profitable?

What are the spot trading skills? How can spot trading be profitable?

Spot trading is a new investment channel, and buyers and sellers in the spot market must make settlements with the financial market within a few trading days after the transaction closes. To make profits through spot trading, investors must master the relevant skills, and also have to grasp the reality. This article will introduce to you what spot trading skills are and how to make profits from spot trading.

What are the spot trading skills?

1. Don't do three things: don't do it when you're tired, sleepy, or tired; don't do it when you're in a bad mood; don't do it when you don't understand the market.

2. Wet warehouses take advantage of the trend: When trading, open positions according to the number of funds in the account. The general principle is that the position does not exceed one-third of the number of funds. Heavy positions are strictly prohibited, and orders against the market are strictly prohibited.

3. Strict stop loss: After placing an order, whether it is long or short, the loss range cannot exceed 3 points. Exceeding means that the order is wrong. No matter how the market goes, stop loss must be considered.

4. It is forbidden to take flukes: flukes are taboo for survival. If there is a fluke after a loss, it may lead to more serious consequences. Therefore, after making a mistake, you must strictly stop the loss, and you must not take any chances.

5. Non-retaliation to make orders: the gambler's psychology after losing is to turn over the book, and investment must not have the same gambling mentality as gamblers. The general principle is that the loss should not exceed two times a day. Once there are two losses, the state is not good, and the possibility of continuous losses may increase. Therefore, there may be cases of retaliatory orders, which must be strictly prohibited.

6. If you make frequent orders, you will need to stop loss: the number of transactions is large, and the probability of errors is also high. The first principle of trading is the safety of account funds and the interests of customers. Frequent orders should not be made in pursuit of order volume. The principle of making multiple orders is to ensure that the account is profitable.

How can spot trading be profitable?

The spot market mainly uses the price difference to make profits, that is to say, using market changes to buy low and sell high to obtain profits, including high-frequency, short-term, medium-term, and long-term trading methods. For example, investor Mr. Wang bought 2 lots of 5,000 ounces of gold when the spot gold price was $15/oz, and the price rose to 15.8 at a certain period. At this time, Mr. Wang closed the spot he held at 15.5. , then his profit is: (closing price - opening price) * lot size * product unit, that is ($15.5 - $15) * 2 * 5000 = $5000, this is his profit. If the market is not good and the price falls, the same calculation method is used, and the result is a negative number to prove a loss.

It can be seen that there are many spot trading skills. Although these skills do not seem complicated, it is not easy for investors to do well. This requires investors to have enough experience and to be able to use these skills flexibly. As for the profit of spot trading, it is still through the difference to make money, which is similar to other investment transactions.