Trade Gold Trading

Trend Following

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

A carefully designed strategy that 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 trading strategy will make it easier for the online trader to follow the guidelines of their system because they already know that the trade strategy is profitable, thence maintaining the discipline that's required to continue following the system will be much easier.

Successful strategies also will include:

1. equity management guidelines

2.Trade Psychology Mindset

The 2 will improve greatly the success of any trading system.

However, Let us look at price action strategy before explaining more about money management strategies and guidelines and gold psychology.

XAU/USD Trend Following Strategies

Trend following trading strategies are based on first determining the over-all price trend, whether the market is moving upwards or it's heading downward. After determining the price trend the gold trader will then only open trade positions in one direction.

Upwards trend - in an upwards trend prices keep moving up, and here the gold trader will keep opening buy trade positions.

Downwards trend - in a downwards trend prices keep heading down, & here the online trader will keep opening sell trade positions.

The various strategies of determining the market trends & the 2 most popular ones are:

Trend-lines - traders will draw trend line on the price chart to determine the current general market movement. Once the trend direction is determine a gold trader then will open trade positions once the price touches the trendline or when price is close to the trend line. The trader will only open trades in the direction of the trend.

When markets form trends, the market trend will have a lot of momentum & this energy will mean that the prices will keep heading in that direction for a period of time that lasts for quite a while.

the market trend is one of the most lucrative way to trade the market if a gold trader catches a market trend that has already formed they can make and earn a lot profit just by trading in the direction of the market trend & the longer the market trend stays the longer a gold trader can continue to earn profits. Some major trend may last for years and these can prove to be the most profitable setups especially when they last for years.

MAs Trading Strategies - Another trend identification trading strategy is the use of the 20 day Moving Average, and when prices are above this moving average(MA) the market is bullish and if prices are below this MA(Moving Average) the market is bearish.

The 50 day moving average MA is also used for figuring out the medium-term trend, while the 200 day MA Moving Average is used to determine the long-term trend of the price.

Traders also can use two MAs to form the moving average MA crossover strategy, this technique/method will have a shorter period MA and a longer-term moving average & these 2 will be use to determine ruling trend. For example illustration a trader can use the 5 day & 7 day moving averages, & for this strategy the trend is upward if both these moving averages are heading in the upwards direction & the trend will be down if both these 2 moving averages are heading downward.

This system will indicate the market trend is about to change once these 2 lines cross-over each other. This trade signal will be a good time to close trades if a gold trader has open trade positions.

Gold Strategies Tips

Once a trader has create their trading strategy, they should also try and include the following to make their strategy more successful.

1.Trade Money Management Guidelines

2.Trade Psychology

Trade Money Management Rules

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

To learn more about these 2 gold money management guidelines, traders should read the trading money management course that is on the learn gold lessons section of this web site under the trading key concepts lessons.

XAU/USD Trade Psychology Mindset

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

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

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