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 topics required to start trading and well as the various trading strategies then traders need to adhere to these three steps illustrated and shown below so as to improve their trading. If you haven't learnt about the lessons needed to begin gold trading or you're looking for a gold trading course that provides these gold 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 strategies section of this website. After you've completed reading these tutorials traders then can follow these guidelines to improve their trading.

Come Up with a Plan

Traders need to plan their trading 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 plan can be found on the learn gold trading lessons of this web siteesite, this is the last lesson on this learn gold lessons section.

Use a Gold Plan and Stick to the Gold Plan

Traders should always use the trading plan they develop to trade the online market. Strategy that a trader selects should be well written in this gold trading plan and the trader should always follow the trading rules of this gold plan when making a decision 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 trading instruments chosen and selected will be the trading charts that are best suited for based on the gold trader's strategy.

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

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

The gold plan will also include gold trading money management guidelines/rules the trader will follow. For example illustration a xauusd trader should follow the 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 lessons section under the trading key concepts topics.

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

Traders and Investors should also avoid emotions of fear and greed when trading in the trading market. The gold plan will help traders plan their trade transactions and this way traders won't make trade transactions based on their emotions. A trading plan will help a trader set clear goals when trading & at same time will help the Gold 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 ensure that they open trades in the direction of the price trend. The market trend is the overall direction of the prices and this direction can be upwards or downward. Once the market trends start and begin to move in a particular direction price will continue moving in that direction for-some time because the trends will have gathered momentum which will keep pushing the prices in the direction of price trend.

This is why traders should always open trade positions in the direction of the price trend so as to trade in the direction which has momentum and this way traders can increase their chances of being successful when trading the 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 market trend and never open a trade against the market trend. This is because the most reliable technique of trading gold, and not just gold trading even stocks and other trading instruments is to follow the trend & only open trades in the direction of the market 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 Trading Journal To Track Your Trading Results

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

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.

This is the reason why you should keep a trading journal, so that from the log of your recorded trades you can try and identify characteristics of winning trades and characteristics of losing trades. As a trader if you do not keep a trading journal you might continue making the same same mistakes over and over, again and again without even knowing, but if you keep a gold trading journal and keep reviewing this trading journal periodically from time and again then you give yourself a chance to spot and identify the mistakes that you make when trading by reviewing your trade journal.

Once one gains some experience in the market and start to recognizes the successful trading patterns from their winning trades they can then use this info 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 Lessons and Topics:

Trade Gold Trading

3 Steps to Improving Your Gold Trading

Come Up with a Plan

Trade with The Trend

Keep a Trading Journal To Track Your Trading Results