What is low cover?
Low covering is when investors are trapped at a high level, they choose to hold their position and then cover at a low level, that is, they buy again at a lower price in order to uncover if gold prices rebound or reverse.
When the price of gold rebounds, the losses of high bought positions gradually decrease, and the profits of low bought positions gradually increase.
That makes it easier for investors to get out of the gold price even if it doesn’t return to its previous high.
If the market develops well, there will be profit opportunities.
Low cover can be said to solve the problem is the most extensive, but also one of the simplest solution method.
In addition to simple single covering, low covering can also be divided into three modes: pyramid covering, uniform covering and inverted pyramid covering. Pyramid covering means that as the gold price falls, the covering position gradually expands, while inverted pyramid covering is the opposite. Uniform covering means that positions are evenly distributed at different prices.
Each of these three types of covering has its advantages, but from a cost reduction perspective, pyramid covering is more suitable for uncovering because it can put investors in a more active position, making it easier to obtain lower costs and increasing the probability of uncovering.
It should be noted that if an investor is holding more than 50 percent of the total position, he should find another way.
At this point, low positions will increase the exposure risk faced by investors.
In addition to covering short positions, the operational cycle is very important.
How do investors find their operating cycles in the actual battle of speculation?
Can trading just pick a cycle?
Is it possible to try trading for all time periods?
There are differences in prices across time periods. First of all, there are big differences in prices across time periods.
Specifically, market size: big cycle, big market;
Small cycle, small market.
Randomness: large period, small randomness.
Once a trend is formed, it has good ductility and amplitude.
Small cycles are more random, difficult to grasp, and require higher technical and operational requirements.
Timeliness: Large cyclical markets take a long time and require a lot of patience and perseverance from investors.
The amount of funds taken up: large cycle operation, stop loss should also be very large, the capital requirements are also higher.
Small funds are not suitable for large cycles.
In general, small funds can only run small cycles, such as 4 hours and under, while large funds can participate in both large and small cycles.
Everyone’s situation is very different, the size of the operation cycle is relative, investor experience is also very important.
The average white customer is keen on frequent short term, while more and more experienced veterans are slowly expanding their operating cycle.
The dollar rose to a one-week high and gold fell below 1,770 ahead of the Fed rate decision.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
