How to close positions scientifically

Let's learn together
刘涛

Gold is the most popular investment product in the market, so what I talk about is mainly gold, but it is also applicable to other investment products, just the same. Many traders have a common phenomenon, that is, they seem to have one set after another in the analysis of gold, whether it is fundamental or technical, they have their own ideas, but the final effect is minimal, and one of the important reasons for this is It's just that the timing of closing the position is not grasped well, it is too early or too late, and finally returns to the buying point to close the position. Therefore, it is very important to close positions in gold trading. Then, how can traders achieve rational liquidation?

  I believe that more than 90% of traders only need one method, such as a certain technical indicator. When the indicator reaches a certain value, the position can be accurately closed. However, it is a pity that there is no accurate liquidation method so far. In fact, traders do not have to accurately close the position. It is possible to accurately close positions with a high probability.

  The high-sell liquidation method means that the trader has set the target profit price before buying the gold contract, and as long as the subsequent gold price can reach this target, the trader will close the position immediately. Generally speaking, traders who use this method basically rely on Make comprehensive judgments on fundamentals and technical aspects, such as drawing up a suitable point with dividing line and average line, and then close the position when the gold price reaches this point.

  The second top liquidation method refers to not setting a target profit price before, but holding the position all the time, and selling the gold contract until the gold price shows a signal of peaking again. Generally speaking, transactions using this method Investors use technical indicators to judge the peaking signal. Specifically, they use head-shoulders tops, triple tops, etc. to analyze the establishment of the top of the period, and then close their positions immediately.

  No matter it is high selling liquidation method or second top liquidation method, traders can effectively use it and achieve good results. In fact, many successful traders in the world use one of these two methods to speculate in gold. Grasp the basic information of the national economy of some important countries, and the target income price set by the trader must be higher than the current market price, which may cause losses due to market uncertainty. However, as long as the trader Observe carefully enough to believe that everything is not a problem.

Copyright reserved to the author

Last updated: 08/20/2023 17:16

162 Upvotes
4 Comments
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2025 Tradinglive Limited. All Rights Reserved.