Trade Gold Trading

Counter Trend

One must create a strategy which they follow & adhere to when trading the market. One must have the discipline to stick to the trade strategy at all times. That is why it's better to create strategies which are simple - profitable trading systems will be a lot easier to follow & adhere to and stick to. This is because a-trader knows that by following the trade rules of their trade strategy they will be successful.

A carefully designed & built strategy which has been back tested and proven to produce profitable results is one of the keys to becoming successful when trading the market. This type of strategy will make it easier for the trader to follow & adhere to the guide-lines of their trade system because they already know that the trade strategy is profitable, therefore keeping up the discipline required to continue following the trade strategy will be much easier.

Successful trade strategies also will include:

1. Gold trading equity management rules

2.Trade Psychology Mindset

The 2 will greatly improve the success of any system.

However, Let us look at trading price action strategy before narrating on gold trading money management techniques and guidelines & gold trading psychology.

Counter Trend Trading Strategies

Counter trend strategies are best used to place trades on major resistance and support areas where gold trading price is likely to reverse. These are the support and resistance zones where the price hasn't broken before.

However, this strategy isn't the most reliable gold trading method because trying to catch the market top or the market bottom is not the best strategy as the trend may continue to move in the original direction of the trend for quite some time.

This strategy should thenceforth only be used to trade that rarely trend. Traders can draw support and resistance levels of the price range and they will then use these technical levels to open positions - traders will open buy trade positions at the support level and traders will open sell trades at the resistance level. For a range bound market the trading prices will keep bouncing off these points and the gold traders will open trades and keep trading these market price bounces.

Trading Strategies Tips

Once a trader has create their trade strategy, they should also include the following so as to make their trade strategy more successful.

1.Trade Money Management Rules

2.Trade Psychology

Trade Money Management Rules

Gold funds management rules should be part of your strategy - the trade rules will help you as the trader to manage risk. This means that you will use the two rules of trading money management - these are risk to reward ratio and draw down reducing technique when placing your trades to identify contract/lot size that you will open in the market. The most popular gold trading equity management rule used in xauusd & the one that you should also add to your trade plan is the rule which says a gold trader should never risk more than 2% of their trading account balance on any one single trade.

To learn more about these two equity management principles, traders should study the trading money management course that is on the learn trading courses section of this site under the trading key concepts courses.

Gold Trade Psychology Mindset

In order for a trader to become successful when trading the market one has to learn about gold trading psychology. The psychology or mindset which's needed to become successful in gold trading is one that avoids the emotions of fear and greed while trading the market & is a mindset of total discipline that one will follow all their rules and their strategy & only trade with signals which are generated by their strategy. With discipline one will not trade unless their trade strategy gives and generates a signal. One will have the mindset of only following their trade strategy 100 % all the time without second-guessing the trade system. A disciplined trader will also not open trade transactions in market just because the market has begun to move up or downwards, instead one will wait for a signal to be derived/generated by their strategy.

In order to study more about psychology and how to manage emotions while trading the online market one can read the trading psychology lessons from the learn trading courses section of this site under the trading key concepts courses.

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Forex Traders Seminar

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