Gold Investing for the Novice
The increasing rate of unemployment combined with economic
crunch has raised the
investment juices in everyone - both young and old. Now more
than ever, people want to have more than one source of income
specifically as a strategic move to combat insolvency. Experts, in
the spirit of wealth generation and financial security motive
advised that people should target at least four sources of income
as a sort of wealth calcification strategy. In a bid to conform to
this counsel, commodity trading is chosen as one of the major alternative to
Commodity trading is the wave of the moment now, though it has
been in existence for a long time. Due to the need for job
diversification, trading commodities like gold, silver, platinum,
crude oil, etc. have become a major engagement among the young and
old. The chief among them is gold; the most popular and precious
metal with an atomic number of 79 and usually identified by the
symbol 'Au'. Due to its importance, you will always find it
included in the trading portfolio of most investors. Their reason
is simple profit, with
prices of gold soaring high and rarely
falling too low, there is hardly a
gold investment that results in losses. So if you are a
beginner and wish to be a part of gold business, here are some
important tips that should help you.
You can never be higher than what you know; your achievement in
life ends with what you know. So should you wish to be a gold
investor, learn, learn and learn! Trading gold requires a
reasonable amount of knowledge, you can obtain some from experts
or just browse through the internet, and there are many resources
available for you online - free or paid.
Capital is required in
gold investment as with most investment
ventures, the more capital you invest, the higher your profit.
However, you are advised not to put in most of your capital into
gold trading. At the start of trading, small capital should be
used and as you gain more confidence and control, you can then
increase the rate of capital. In some commodity markets and
precious metals platforms, investors are provided with trial
trading which consist of trading with make believe capital as done
currency trading. Use this tool to a great advantage and that
means, practice, till you gain the necessary knowledge.
Set Sensible Goals
Impractical goal setting is among the major killers of gold
investment. Many novice investors fall as victims of unrealistic
profit goals. They have the urge or desire to break through as
fast as possible and ignorantly fall down as victims of greed.
Greed blinds one's sense of reasoning and makes one easy prey to
fraudsters who by offering enticing offers seek to defraud you off
your capital, so watch out, easy is the game, be patient and never
be in a hurry.
Your greatest enemy in gold trading or any other form of
investment is you yourself. You need to conquer the self before
you can make it in gold investment. There are four major negative
traits that surface during gold trading: greed, impatience,
ignorance and "I know more than you do" attitude, if you can
overcome these human traits then, you would have obtained at least
45% of potential success in your gold trading quest. These traits
might look so harmless, but it is the reason behind many failures
in investment, even the very experienced traders are not spared
from these investment killers.
Gold Investment Companies
Trading gold is usually operated via a recognized platform or
investment companies. It is comparable to forex trading that uses currency trading platforms. Before
investing in gold, you will want to ascertain the type of gold
company to trade from. Basically there are two classes of
investment platforms to trade from as far as gold is concerned and
they are: open end and closed end. Gold scam is prevalent in these
companies, be careful therefore how you choose them.
If you combine these tips with others that you may later
discover over time in your gold trading quest, you will surely
become a success in your investment ventures.