Trade Gold Trading

Learn Online Gold Trading Courses for New Beginner Gold Traders

Gold provides an alternative investment to traders and gold investors. Retail traders or the individual gold trading investors trade the market for speculation purpose to profit from price moves. Traders will place trades in the market and try to make profits from the market moves.

Gold activities involve speculative gold transactions which make the market the one of the liquid one trading market in the world.

The market is also an Over The Counter (OTC) market which means trade positions can be opened from anywhere in the world.

Most gold activity is done for speculation and when most people talk about gold trading they are most likely referring to speculative gold trade. The market participants that trade for speculation purposes are the small individual gold investors & retail traders and they are commonly referred to as retail gold investors or retail traders.

The market growth that's as a result of these retail traders joining the market and trading the market online through xauusd brokers.

The retail traders often trade gold online and open trades from their accounts that they have opened with their brokers. This makes the trading a global market place where traders can open trades in this market from anywhere in the world. The size of the market means that the market is very liquid and the online traders can open trades at any time of day or night during the week. This liquidity also means that no a trader can control or corner the market due to its sheer size.

Xauusd prices keep moving up and down all the time and these market movements are determined by supply and demand of gold.

These market movements can be studied using xauusd analysis and gold fundamental analysis.

Xauusd trading analysis is the study of market movements based on different price pattern formations that can be interpreted differently depending on the pattern formed. This study of price movement and price patterns is known as price action gold trading. Other trading analysis methods & techniques include use of charts to interpret and analyze market moves. Xauusd analysis also includes use of indicators which are tools that calculate the momentum of a market trend.

Xauusd trading analysis also involves study of market trends. A trend is a general direction of prices in the market that can be up or down. In the market, xauusd prices generally move in trends and when a trend is formed prices keep moving in that given direction for a period of time. For this reason when a trend is formed then traders will keep opening xauusd trade positions in the same direction of the trend for as long as the trend continues to move in that particular direction. Traders will use trading analysis to determine the direction of these market trends and also to determine the force of these price trends.

Fundamental analysis is the study of price moves by interpreting economic reports to determine the likely direction that price is likely to move. This type of analysis will require the trader to read and study a lot about all the various economic data reports and learn how to interpret and analyze each trading report. This type of analysis may & might take time to learn & master. It also requires that the Gold traders keep up with the many economic reports released.

Brokers

Because the market does not trade from one central gold place, traders need to trade with a online broker who will connect them to the online trading market.

To start trading - traders need a PC computer that's connected to the internet. Traders then open a account with an online broker and from this account traders can place trades directly to the online market. Once a trader opens a trade on their account, the broker then will place these trade transactions on the market on behalf of the gold traders. Once the gold trader decides to close their trades, then the broker will close the trades and remove the trade transactions from the online trading market & credit traders with the profit or loss they have made from trading the market.

With the coming of many brokers - traders can open trading accounts from anywhere in the world and trade gold from any location in the world directly from their home computer or office computer. The ease with which one can sign up a account with any broker and trade from anywhere in the world is what has contributed to the growth of the market especially among the retail gold investors & retail traders.

Softwares

The broker provides traders with trading software which are commonly known as platforms in the market. From these platforms traders can log in to their accounts, place trades from this platforms & also monitor their trading account balance from these softwares.

The platforms provide traders with streaming xauusd price quotes and charts that draw these quotes in the form of graphs known as charts.

A platform will for example display gold instruments charts and also display streaming xauusd price quotes of these gold instruments.

If the streaming xauusd price quotes are moving up, then the chart of these price quotes will show a general upwards direction and traders can buy gold based on the upward price trend movement of these price quotes. This is why xauusd charts are provided and drawn automatically on the platform so that traders can determine the direction of the price & hence be able to make a decision what direction to place their trade transactions.

How to Open a Trade

Once a trader opens a buy or sell trade position, the Gold trader has to hold onto the trade for a period of time so that to give the price, time to move in one or the other direction. This trade is known as a gold position. A trader may only open their trade for a couple of minutes and only aim to make little profits or a gold trader may hold their trade for hours so as to try and make more profits from the trade position. However, because gold trading is speculative, xauusd trades may also move in the direction in the opposite trend of the trend and a xauusd trader should be ready to close their trade transactions after the loss moves against their gold position by a specified number of gold pips so as to minimize further losses.

Why Trade XAU/USD

The No. one of why to trade Gold is leverage. With trading leverage - traders can register their account with little amount of capital & borrow the rest from the online broker the money required to make trade positions. For example illustration one can sign up a trading account with $10,000 & the broker might give them leverage option of 100:1 which means that the traders can borrow upto 100 times their capital, henceforth a gold trader will control $10,000 dollars multiplied by 100 which is a total capital of $1,000,000 which a gold trader can open trade positions with.

However, traders should be careful when trading with trading leverage because leverage increases profits and also losses and that is why xauusd traders should make sure they learn gold money management guidelines before they start Gold. Gold money management guidelines tutorial is covered in this learn gold web site on the learn gold lessons section under the Key Concepts topics.

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