In the past article we explained how to open a short position. In this article we will show you how to open a long position on gold.
Gold, a precious metal
As a precious metal gold is less risky compared to other investments. Therefor it could be a good decision to start investing in gold. There are several ways to invest in gold.
First of all you could buy physical gold and store it at a safe place, this is the safest option. Next to that you also can buy CFD’s (contract for difference) on gold. In this video I explain how to open a long position on gold.
What is a long position ?
A long position means that you buy gold for a certain price with the intention to sell it at a higher price in the future. Simply said, I’m thinking that gold is undervalued and will gain 5% in the coming month, therefor I buy a certain amount of gold right now and sell it after I gained my profits.
What do you need to open a position ?
First of all, to open any kind of position you need a broker. In our case we are using plus500 but there are many others who are offering the same services. If you want to practice first most brokers also have the ‘demo’ option where you can invest with fake money.
Next to that we need a price level where we want to buy gold, In our case it is $1217 per oz. And we need a take profit and stop loss order in case we reach our profit levels or reached our loss levels. In our case we have set the take profit level at $1229. So if the price of gold reaches that level, the broker automatically sells your stocks again and you take the profit. The stop loss we have set at $1210 which means that if the price of gold reaches that level the broker automatically sells your stocks to prevent further loses.
80.6% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
The content of this video and article are not financial advice. You should not make any investments based on this video and article. I am not liable for any losses you may incur when trading, always do your own research.