Gold Tips for Successful Gold Trading
To trade successfully traders need to train on how to become disciplined, following tips can help traders to become more successful when trading gold.
Have a Plan & Stick To Your Plan
Once you learn the basics you must then come up with a plan that you must stick to. Gold plan will define your schedule & the timeframe that you will be trading. To be successful in trading a trader must come up with a plan & stick to the rules of their plan.
Trade with The Market Trend
A trader should identify the market trend & trade with this market trend. A trader should not trade against the market trend. Once gold trading starts to move in one direction, the direction will gain momentum and prices will move in that direction for some time. To be successful as trader it is recommended that a trader trades in the general direction of these trends.
Choose your Broker Carefully
Most new traders do not know a lot about brokers but for the new trader it is very important to select the right broker before beginning to begin gold. A good broker can mean the difference between making profits as a trader or making losses as a trader. Choosing an unreliable broker can mean that all your work and effort that you have put into studying gold trading will all go to waste as an unreliable broker will not match your goals and needs. There are many unreliable brokers out there & so new traders need to do due diligence when selecting a broker to trade with.
Begin Trading with a Well Capitalized Account
One of the reasons why traders do not succeed in Gold is that they start with undercapitalized accounts. Opening an account with $100 dollars because this is the minimum amount a trader can open an account with will not make most traders profitable.
Gold requires that a trader starts trading with at least $1,000 if they will be micro lots & $100,000 if they will be standard lots. If as a trader you don't have the required capital it is best to save until you reach the amount of money that will help you open a well capitalized account. This will increase your chances of becoming success in trading gold.
do not add to losing positions
When gold trading once a trade starts to make losses traders will start to add on to this losing position in the hopes that once this trade reverses they will then make back their money faster if they open more positions. However, if the market moves against a trader it may continue moving towards that direction for a while and this means that once a trader adds onto a losing position & the trade continues to move against the trader further the trader will now begin to make more losses because of the new trades that have been added to the losing positions. Instead it is best to close the losing positions and wait for new trade opportunities & open trades from other new setups.
Trade Without Emotions
Fear & Greed should have no place in trading. Traders should make decisions based on their plan & not based on their emotions. Gold traders must control fear and greed by learning psychology. Traders should not become greedy & open large positions that may make them lose their money. Traders should reduce their risk in trading, & this way they can control their emotions of fear & greed.
Keep a Journal
Traders should keep a journal that will record their winning trades & losing trades. This way a trader can identify what factors in result in winning trades and what factors result in losing trades and traders can then improve their trading by trying to avoid the mistakes that result in losing trades and try to improve on the successful trades.
By scrutinizing mistakes and successes from their activity traders can learn what works & what doesn’t & this way improve their trading.
Learn Money Management Rules
To become a successful trader new traders must learn about equity management principles, gold money management guidelines helps traders to manage their profits & learn how to protect this profits as well as how to protect the money in their account. Gold equity management guidelines will specify when a trader will close positions if the trades make losses & the rules will also specify when a trader will take profits when his open trades make profits.
Study Fundamental Analysis and Analysis
Traders should learn technical analysis & fundamental analysis: successful market analysis will give you an edge as a trader & increases your chances of being profitable when trading the market.
Finally, you must be persistent & determined & be patient when learning Gold. Learning takes time and traders should be ready to put in the time and effort required to learn gold.
