Many of my friends are getting into gold investment, all in for the "quick profit": they've heard that someone made money with short-term trading, or that someone cashed in when the market rose, so they rush to get in, hoping to double their money quickly. But the reality is often that the more eager you are to make money, the more likely you are to end up in a mess—some people watch the market every day, getting ecstatic with a slight rise and buying more, panicking and selling at a slight drop; some lose money and are eager to recover, buying more as it drops, turning a small loss into a big one; and others chase high prices, only to encounter a pullback right after buying, getting stuck at a high position.
In fact, gold is not inherently a tool for "quick profits." It doesn’t fluctuate violently like stocks, with an average annual return mostly around 5%-10%; rather, it acts as a "stabilizer" for wealth, not an "ATM." I know an old stock trader who used to think of making quick profits through short-term trading in gold, buying and selling a dozen times in a month, incurring significant transaction fees, and ultimately earning less than a fixed deposit at the bank. Later, he adjusted his mindset and invested only 15% of his total family assets in gold ETFs, rarely checking the market, and after half a year, he ended up earning 8%. This shows the difference in mindset: the more eager one is for quick success, the more easily one is led by market fluctuations; the more patient one is, the more likely they are to benefit from the passing of time.
To invest in gold, one must first give up "greed" and "luck." Many people feel pleased after making a small profit, thinking they have "seen through the market," and then increase their positions, only to give back all their previous gains; others, after incurring losses, stubbornly cling to the hope that "it will rise if I wait a bit longer," ultimately getting trapped deeper. Remember, there are no guaranteed profits in gold investment; losses are a norm, just like paying rent when running a shop. The correct approach is to determine beforehand "the maximum loss you can accept," set a stop-loss line, and once it is reached, exit decisively—don't let small losses turn into big ones. Also, don’t be greedy when in profit; getting a share of the "fish body" is enough, there’s no need to be fixated on earning the last cent.
Secondly, don’t let gold investment become a source of "mental consumption." Some people check gold prices dozens of times a day after buying, feeling anxious about whether to sell when prices rise, or worrying if prices will keep falling when they drop, which even affects work and life. In reality, short-term price fluctuations are mostly "market noise," and have little significance for long-term investment. Research has found that investors who check gold prices only once a week have a higher probability of making a profit compared to those who watch the market daily—because they are not disturbed by short-term fluctuations and can stick to their investment plan. It might be helpful to set a rule for yourself to check earnings at a fixed time each month, and spend the rest of the time focusing on work and life; the more relaxed your mindset, the more rational your decisions will be.
Finally, remember that gold is for "asset allocation," not a "all-in gamble." Never invest all your savings in gold, no matter how optimistic you are about its market. A reasonable approach is to treat gold as the "ballast" of your asset portfolio, keeping its proportion between 10%-20% of total family assets, while allocating the remaining funds to stocks, funds, deposits, and other assets. This way, even if gold experiences short-term adjustments, it won’t affect your overall financial situation, and you won’t make wrong decisions out of panic.
The core of investing in gold is to use rationality to combat human weaknesses. Have less of the fantasy of "getting rich overnight," and more patience for "long-term holding;" less impulsiveness in "chasing highs and killing lows," and more discipline in "operating according to plan." When you can calmly face the fluctuations in gold prices, unaffected by emotions, making money will naturally become easier.
