Trade Gold Trading

Counter Trend

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

A carefully designed 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 trade strategy will make it easier for the trader to follow the guide-lines of their trade strategy because they already know that the trade strategy is profitable, henceforth keeping up the discipline 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 two will greatly improve the success of any system.

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

Counter Trend Trading Strategies

Counter trend strategies are best used to place trades on major resistance and support areas where xauusd trading price is likely to reverse. These are the support and resistance zones where 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 trading price range and they will then use these levels to open trade positions - traders will open buy trades at the support level and traders will open sell trades at the resistance zone. For a range bound market the trading prices will keep bouncing off these points and the traders will open trade positions 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 trading equity management rules should be part of your strategy - the rules will help you as the trader to manage risk. This means that you'll use the two rules of trading money management - these are risk : reward ratio & draw down reducing method when placing your trades to determine lot size that you'll open in the market. The most popular gold trading equity management rule use in xauusd & the one that you should also add to your 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 one 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 a signal. One will have the mindset of only following their system 100 % all the time without second guessing the trade system. A disciplined trader will also not open trades in market just because the market has started to move up-wards or down-ward, instead one will wait for a signal to be 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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