Could you explain the following terms and the differences between them: long position, short position, long-term and short-term position? Maybe it’s basics, but for me they sometimes all get mixed up. Thanks.
Short-term position = speculative position. It is something for which you use your speculative (trading) capital. You use only a part of this capital for each trade and your goal is to profit on the short-term price swings. Generally, in most cases, you should not put most of your capital for speculative purposes.
Long-term position, long-term investment = investment position. That's the part of you capital that you use to buy and almost never sell. The goal is to gain money on the long-term appreciation of the capital. This is mostly a bet on the positive fundamental situation - in this case on the precious metals market. Here, the risk to be out of the market, so it makes sense to sell one's holdings only during the most unfavorable market conditions.
Short position = bet on lower prices - generally it regards speculative capital.
Long position = bet on higher prices. Going long gold means buying gold.
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