Listen to my advice, don't start by debating. Just look at the historical records and you'll understand that over the past thirty years, whenever the Federal Reserve cuts interest rates, the market is likely to crash. There have been five crashes out of six rate cuts, dropping directly by 15% within three months. Is this a coincidence? It's simply an old trick from Wall Street.
This year's performance is even more spectacular. At the end of last year, the entire market was betting on a rate cut in June, resulting in gold ETFs being bought out, and gold prices soared from 26,000 to 30,000. But by March, the Federal Reserve casually said "wait a bit longer," and major institutions immediately started to withdraw, causing gold prices to plummet — these people always play the same game: first, they lay low, then they sell off when the news comes out.
The worst off are those following the trend, like the aunties. In January, when gold prices were high, they rushed to buy jewelry, only to lose 10% in less than three months. In April, it got even more exciting when Trump suddenly said he wanted to replace the Federal Reserve Chair, combined with tariff issues, causing gold prices to crash from 33,000 to 30,000 in a single day. How many leveraged positions went to zero? Although the situation later eased and gold prices went back up, who can handle such a roller coaster?
Do you understand now? Gold is merely a toy in the hands of the Federal Reserve. When they flood the market, you drink the soup; when they pull back, you must run quickly. Remember three iron rules: First, don't exceed 10% in gold positions; second, set a stop-loss line; third, when even the aunties in the vegetable market are discussing buying gold, it's time to run.
The market is always changing, but the tricks to fleece the sheep never change. If you really want to make money, you need to observe more and act less; controlling your hands is better than anything else. If you always feel like you can't keep up with the rhythm, feel free to chat anytime.
