Setting up an Investment strategy & Becoming a gold investor | Gold ...

Precious metals are natural metallic elements with a high economic value due to their rareness. Success in precious metals investing will be more likely to happen if you have a solid investment strategy. If you are thinking about become a gold investor, then you must know a few things.

Set up a trading approach. For example:

-First, ask yourself is this type of investment is appropriate for you

-Determine how much of your investment capital you are going to dedicate to precious metals

-Are going to stick to one asset or diversify? Multiple ways to buy gold, multiple ways to buy silver (Example: stocks, bullions coins, options)

-Do you have other investments that should be sold for precious metals?

-Are you going to go with small frequent purchases of different products or are you going with larger infrequent purchases?

-At what point will you enter a trade

-How long will you stay in your position before selling / buying? Are you going to make a trade on a fixed time period basis or when a particular event occurs?

-What will you do if the spot price goes down during your time period? Buy more or go out?

-If you buy more at lower price, what will you do if the assets price goes down even further?

What price level or loss percentage will you tolerate as a gold investor?

-If you plan to invest when a market dip occurs, which analytic tools will you need to fully understand the market? You could find yourself waiting for a dip that will never happen, missing an opportunity to make profits as the prices rise.

-At what point will you cash out profitable trades.

-Get familiar with the principal ways of investing into gold and other precious metals because there are many ways to buy gold, silver and precious metals.

You and no one else can answer these questions. Your investment decisions must be based on your preferences and objectives.

Choose a market

As a new gold investor / precious metals investor, it is better to stick with a particular asset until you are experienced with markets in general.

Trading gold and silver futures is fine, but beginners shouldn?t trade gold and silver along with oil or natural gas. The more you stretch over different markets, the more it will be difficult to become an expert in the market that counts. Specializing in one market will make it much easier to succeed.

Fortunately, with precious metals, you can specialize in different metals and in different investment vehicles (ways to buy gold / ways to buy silver).

So, what will you focus on?

Source: http://www.bullioninvestorhelp.com/setting-up-an-investment-strategy-becoming-a-gold-investor/

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