According to Doug Mears - 3 Things That You Need to Know About Gold Trading

With a sharp surge in gold prices over the past few years, gold trading has been gaining in popularity throughout the world. Nowadays, one can easily find numerous gold trading tips listed online. Every expert has something new to say, but if you are really serious about getting the most out of your investment, take a look below at 3 basic things every gold trader must know before investing in gold:

·         Purchase Gold in Physical form: One of the best possible ways of investing in gold is through ownership of gold coins and bars. Not only does it offer genuine money value returns, but at the same time you’ll feel a lot more relaxed by knowing that you’ve something that can be exchanged for money anytime as and when required. Plus, gold being so valuable, you can expect to get high returns by holding physical gold for a certain period of time. Unlike Gold stocks, gold trading in physical form is much more secured and promises genuine returns, though it takes a longer time to show the results compared to the gold stocks. However, it’s always recommended to go for the slower but a safer mode instead of opting for the faster but highly volatile risky modes.

·         Spot Gold Trading: Market experts nowadays prefer Online Gold trading simply because it’s probably the quickest and most secured way of gold trading. Firstly, by trading online, you won’t need any storage space. Adding to this, even if you are working with a limited capital, you can effectively make full use of steep leverage rates that your broker offers you. Moreover, this will also ensure that even if gold price drops suddenly, you can still make profits by selling your gold contract. People mostly fail in spot trading because they never take money control in hand and are often over-leveraged. These are the things that must be avoided under any circumstances which is always suggested by Doug Mears.

Portfolio Diversification: Many people have a misapprehension that it’s better to invest in a particular investment vehicle to be profitable. In reality, it’s completely the other way round and therefore it’s vital to get your portfolio diversified so that even if one investment is not doing that well, you still have backups that are helping you make money. Alongside this, add more capital slowly to your investment when the investments start making money so that it will effectively serve as a compounding factor, that’s the way through which money makes money.