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 xauusd market and this will lead to the trader becoming more successful.
After traders have learned the gold trading lessons required to start xauusd trading and well as the various gold trading strategies then traders need to follow these three steps below so as to improve their trading. If you have not learnt about the gold 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 can also find gold trading strategies from the learn gold trading strategies section of this web site. After you've completed reading these guides traders can then follow these steps to improve their trading.
Come Up with a XAUUSD Trading Plan
Traders need to plan their trading & to do this, traders will have to come up with a gold trading plan. Gold 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 website, this is the last lesson on this learn gold trading lessons section.
Use a Gold Trading Plan and Stick to the Gold Trading Plan
Traders should always use the gold trading plan they create to trade the online gold market. Strategy that a trader chooses 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 & close trades.
The trading instruments that a trader will be trading will also be specified within this gold trading plan, the trading instruments chosen will be the gold charts that are best suited for trading based on the trader’s trading 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 time frames used will depend on the trading style of a gold trader. A scalper will use the one minute charts, a day trader may use the 15 minute charts and the swing trader may use hourly charts.
The gold trading plan will also set the take profit targets for each trade as well as the stop loss for each trade. Once a trade is open then a trader will close their trade once the take profit level is reached or once the stop loss level is reached. By sticking to this technique of closing trades at pre determined levels will ensure that traders will be more successful because they will have decided the points to close trades before opening the trade.
The gold trading plan will also include gold trading money management guidelines that the trader will follow. For example a trader should follow the gold trading money management rule that specifies that they should not risk more than 2% of their account capital on any one single gold trade. The gold trading money management guidelines tutorial can also be found on this site on the learn gold trading lessons section under the gold trading key concepts topics.
If as a trader your chosen strategy is to use automated trading strategies and Expert-Advisors then these automated strategy should be specified in your trading plan. Whatever strategy you decide to trade with as a gold trader, write it down in your gold trading plan & stick to trading with that strategy.
Traders should also avoid emotions of fear & greed when trading in the gold 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 gold trading plan will help a trader set clear goals when trading & at same time will help traders to stay organized when trading & thus ensuring gold traders become more successful when trading in the xauusd trading market.
Trade with The XAUUSD Trend
Traders should always make sure that they open trades in the direction of the market trend. The market gold trend is the general direction of the market xauusd prices and this direction can be upwards or downwards. Once the xauusd market trends start to move in a particular direction xauusd price will continue to move in that direction for a while because the trends will have gained momentum that will keep pushing xauusd 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 xauusd trading market.
Trader always have a saying in the xauusd market - The gold trend is your friend - which means that traders should always trade in the direction of the trend and never open a trade against the xauusd 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 gold trend and only open trades in the direction of the trend.
There are various techniques of determining the direction of a market gold trend & to do this trader should use gold trend-lines or moving averages or Bollinger bands technical indicator.
Keep a XAUUSD Trading Journal To Track Your Trading Results
Traders should always keep a gold journal & write down all trades that they open in this journal, they should write why they opened each trade, 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 gold trading 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 journal from time to time then you give yourself a chance to identify the mistakes you make in trading from reviewing your trading journal.
Once a trader gains some experience in the xauusd market and start to recognizes the successful trading patterns from their winning xauusd 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 xauusd trading.
