3 Steps to Improving Your Gold Trading

For new beginners wanting to improve their gold trading education will play a fundamental role to improve their understanding of the market and this will lead to the trader becoming more successful.

After traders have learned the trading lessons required to start trading and well as the various trading strategies then traders need to follow these three steps below so as to improve their trading. If you have not learnt about the trading lessons needed to start gold trading or you are looking for a gold trading course that provides these gold trading lessons then you can find these gold trading lessons on the learn gold trading section of this website. You also can find trading strategies from the learn trading strategies section of this website. After you've completed reading these tutorials traders then can follow these steps to improve their trading.

Come Up with a Plan

Traders need to plan their trading and to do this, traders will have to come up with a gold trading plan. Traders looking for an example gold trading plan can find one on this website, the lesson of writing a gold trading plan can be found on the learn gold trading lessons of this web siteesite, this is the last lesson on this learn gold trading lessons section.

Use a Gold Plan & Stick to the Gold Plan

Traders should always use the trading plan they develop to trade the online trading market. Strategy that a trader selects should be well written in this gold trading plan and the trader should always follow the rules of this gold trading plan when deciding when to open and close trades.

The trading instruments that a trader will be trading will also be specified within this gold trading plan, the financial instruments chosen will be the charts that are best suited for trading based on the trader's strategy.

The gold trading plan will also specify which chart time frame that the trader will be trading with, whether the trader will use the minute charts or hourly charts. The chart timeframes used will depend on the trading style of a xauusd trader. A scalper will use the one minute charts, a day trader might use the 15 minute charts & the swing trader might use hourly charts.

The gold trading plan will also set the take-profit targets for each trade as well as the stoploss order for each trade transaction. Once a trade position is open then a gold trader will close their trade once the take profit level is reached or once the stoploss order level is reached. By sticking to the technique of closing trades at pre-determined levels will ensure that traders will be more successful because they will have decided the points which to close trades before opening these trade.

The gold trading plan will also include gold trading money management guidelines that the trader will follow. For example a xauusd trader should follow the trading money management rule that specifies that they should not risk more than 2% of their account capital on any one single trade. The gold trading money management guidelines tutorial can also be found on this site on the learn gold trading lessons section under the trading key concepts topics.

If as a trader your chosen strategy is to use automated trading strategies and Expert Advisors then these automated trading strategy should be specified in your trading plan. Whatever strategy you decide to use as a xauusd trader, write it down in your gold trading plan and stick to trading with that strategy.

Traders should also avoid emotions of fear & greed when trading in the trading market. The gold trading plan will help traders plan their trades and this way traders will not make trades based on their emotions. A trading plan will help a trader set clear goals when trading & at same time will help traders to stay organized when trading & thus ensuring traders become more successful when trading in the trading market.

Trade with The Trend

Traders should always make sure that they open trades in the direction of the market trend. The market trend is the general direction of the market prices and this direction can be upward or downwards. Once the market trends start to move in a particular direction price will continue to move in that direction for a while because the trends will have gained momentum that will keep pushing prices in the direction of the market trend.

This is why traders should always open trades in the direction of the market trend so as to trade in the direction that has momentum and this way traders can increase their chances of being successful when trading the trading market.

Trader always have a saying in the market - The trend is your friend - which means that traders should always trade in the direction of the trend and never open a trade against the market trend. This is because the most reliable method of trading gold, and not just gold trading even stocks and other financial instruments is to follow the trend & only open trades in the direction of the trend.

The various techniques of determining the direction of a market trend & to do this trader should use trend lines or moving averages or Bollinger bands indicator.

Keep a Journal To Track Your Results

Traders should always keep a gold journal & write down all trades that they open in this journal, they should write down why they opened each trade, when they closed the trade & also the amount of profit or loss generated from that trade transaction.

After a while traders can then review the trades they have made try & look at why the losing trades made a loss and why the winning trades were successful & after that they can then try & do more of what makes them successful & less of what is making them to open losing trades and that way keep on improving on their strategy.

As a trader if you do not keep a trading journal you might continue making the same mistakes again and again without even knowing, but if you keep a gold journal and keep reviewing this trading journal from time to time then you give yourself a chance to spot the mistakes that you make in trading from reviewing your trading journal.

Once a trader gains some experience in the market and start to recognizes the successful trading patterns from their winning trades they can then use this information to identify the trading setups that will have more probability of producing winning trades and this way they can then continue to improve their trading.

Study More Tutorials and Topics:

Trade Gold Trading

3 Steps to Improving Your Gold Trading

Come Up with a Plan

Trade with The Trend

Keep a Journal To Track Your Results