Methods of Setting Stop Loss Gold Orders in XAUUSD Trading

A trader can also place set stop loss & take profit gold orders according to the gold indicators used to set these set stop loss & take profit gold orders. Certain gold indicators use mathematical equations to calculate where the set stop loss order and take profit gold order - these gold trading should be set so as to provide an optimal exit point for xauusd trades. These xauusd technical indicators can be used as the basis for setting these set stop loss orders & take profit xauusd trade orders.

Other traders also place these set stop loss orders & take profit gold orders according to a predetermined risk to reward ratio specified in their gold trading strategy. This method of setting stop loss and take profit depends upon certain mathematical equations. For example a ratio of 20 pips gold stop loss can be used by a trader if the gold trade has the potential to make 60 pips in gold profit: this is a risk reward ratio of 3:1

Other traders just use a predetermined risk percent calculation of their total gold trading account balance.

To set stop loss orders & take profit gold orders in gold trading it is better to use one of the following methods:

1. Percent of Gold Trading Account Balance

This technique is based on the percent of gold trading account balance that the trader is willing to risk & the risk : reward ratio.

If a trader is willing to risk 2% of gold trading account balance then the trader decides how far he will set the stop loss order level based on the gold trade position size that he has bought or sold - the trader also uses the risk reward ratio to calculate where to set gold take profit order for this xauusd trade transaction.

Another method to set stop loss order and take profit gold order in gold trading is to use supports and resistance levels on the xauusd charts.

Given that stop loss orders & take profit gold orders tend to congregate at key support and resistance levels, when one of these levels is touched by the xauusd price, other gold orders are set off. Stop loss gold orders & take profit gold orders tend to accumulate just above or below the resistance or support levels, respectively. Traders should use these support and resistance levels to set stop loss orders & take profit gold orders in gold trading depending on which side of the gold trade they are in.

A resistance or a support area should act like a barrier for xauusd price movement, this is why these resistance and support levels are used to set gold stop losses and gold take profits, if this xauusd price barrier is broken the xauusd price movement can go toward the opposite direction of the original gold trade, but if this barriers (support & resistance levels) are not broken the xauusd price will continue moving in the intended direction. This means that these support and resistance levels can be used as good points to set stop loss orders & take profit gold orders in xauusd trading.

Stop Loss Gold Order & Take Profit Gold Order

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