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 combat bankruptcy.

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 in 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.

The Self
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.