Precious metals trading is a popular area of investment, but it's also fraught with potential risks. To be successful and minimize risk, investors need to avoid some common myths, like the ones below.

1. Blindly follow the trend

Do not blindly follow market hot spots or other people’s recommendations. Conduct your own independent research and analysis to make wise investment decisions.

2. Short-term trading

Precious metals are generally viewed as long-term investments rather than instruments for quick trading. Therefore, it is necessary to avoid frequent short-term transactions, so as to reduce transaction costs and risks.

3. Ignoring risk management

Risk management is the key to success, ensure there is a clear risk management strategy, including position control and diversification.

4. Overconfidence

Don't be so confident that you ignore market risks. Be humble and keep learning to adapt to changing market conditions.

5. Ignore fundamentals

While technical analysis is important, don't overlook fundamental analysis and understand the economic and geopolitical factors relevant to the precious metals market.

6. Overtrading

If you trade precious metals too frequently, it may lead to high transaction costs and losses. Avoid over-trading and only trade when there are clear opportunities.

7. Not understanding the product

Do not purchase precious metal products that you do not understand, and make sure you understand the types and forms of precious metals you invest in.

8. Chasing quick money

Don't seek to get rich quick, investing is a long-term process that requires patience and discipline.

9. Ignore liquidity

Understand the liquidity of the market. Some precious metal markets may not be liquid and trading may not be easy enough.

10. Jump into unknown markets

Don't dive into the unknown precious metals market without adequate preparation and research.

Precious metals trading is a promising form of investment, but it also comes with risks. Avoiding the above pitfalls and taking a prudent approach to investing can help you achieve success in trading and minimize potential risks. Remember, investing is a learning and growing process, and continually improving your financial knowledge and investing skills is the key to success.