Trade Gold Trading

Psychology of Trade Market

The reason why 90 % of traders lose can be summed up with two words:

XAUUSD Psychology

Many people fail on the trading psychology front and only a few take the time to transform their mindset. The reason why most people make losses is not that they can't beat the market, but because they do not have the right mindset. Gold psychology is all about transforming your mindset.

In XAUUSD, you must first master your method & then put in many hours of studying how the market works.

The market is too complex and there are many factors that have a huge impact on the daily fluctuation of market prices. Traders should understand how the online market works through studying trend characteristics & also how these fluctuations take place.

Psychology and Emotions

In the market, winning is a matter of the mind. Studying the psychology of the market takes into account what influences others - including the mass psychology of the people that trade gold on a daily basis. Anything involving winning or losing large sums of money becomes emotionally charged. Winning depends on knowing your own mind & also understanding how mass psychology moves the prices.

In most cases when traders invest in gold, they invest more than just money - they make an emotional investment. This is where most go wrong; being right becomes more important than making money. When the transaction goes wrong since they have already made an emotional investment they let their decisions to be ruled by their emotions and they hold on to their losing transactions in the hope that it'll bounce back. Unfortunately their losses become greater and they find it even more difficult to close their xauusd trade orders.

Even when traders make money and let their emotions get in the way, they either become greedy or over-trade.

Gold psychology will form a good foundation for profitably - it is about learning how to keep emotions out of the picture, & not to letting these emotions control your trading transaction decisions - trader behavior changes very little with time, as humans will always make the same mistakes over and over again.

You can learn how to control the three most dangerous emotions that tend to cloud judgment & cost you profits. These three emotions include:

  • Greed

  • Fear

  • Hope

Six Tips for Transforming Your Mindset

1. Define your goal.

There are many important Gold questions that you need to answer before jumping into the xauusd market. Making and defining agoal will give you a start point to your success.

2. Keep it simple.

Some people use more than 5 indicators on one chart analyze and to inform them of their next move with no success or even breaking even. The thing is that more indicators don't equal more accuracy.

The 3 most powerful tools to use are:

  1. Candlesticks (buyer & sellers behavior),
  2. Gold Price action (such as support & resistances), and
  3. Gold Trendline (up, sideways or down).

3. Don't get emotional.

If you are attaching emotions to your gold trades because there is real cash involved you need to change your trading mindset & start following your plan. If you're a beginner trader with no previous experience always begin with training and learn until you begin making profits on you Gold demo account before investing your capital.

4. Nothing wrong with breaking even.

Not all your trades are going to be winners. It is better to break even than to lose. If you know that a transaction has turned against you don't begin praying for a miracle hoping for the market trend to reverse instead cut your loss & move on. There are endless profitable opportunities.

5. Speculation is your worst enemy.

Don't speculate on where xauusd price maybe heading. Always use your charts and your plan and study the gold trend before opening a transaction. The trend is your friend, so make good use of it by following the price charts.

6. Do-not allow your winning orders to turn against you.

If you have an open winning transaction at hand do not allow it to turn against you. It is better to place a stop 5 pips above the entry opening point and break even/or win little than to let it turn in to a loss.

For how to utilize these tips look at the Gold plan tutorial: the section about this is shown below.

How to Transform Your Psychology and Mindset When Trading - Trading Psychology and Trading Mindset

Psychology Section on Gold Plan

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