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 the price movements. 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 market which means trades 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 trading. 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 trading investors or retail traders.

The market growth that is 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 online market place where traders can open trades in this online market from anywhere in the world. The size of the online price means the market is very liquid and traders can open trades at any time of day or night during the trading week. This liquidity also means that no a trader can control the market because of 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 include use of charts to interpret market moves. Xauusd trading analysis also includes use of indicators which are tools that calculate the momentum of a 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 particular direction for a period of time. For this reason when a trend is formed then traders will keep opening xauusd trades 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 momentum of these price trends.

Fundamental trading analysis is the study of price movements 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 a lot about all the various economic reports and learn how to interpret each trading report. This type of analysis may take time to learn and master. It also requires that traders keep up with the numerous economic reports released.

Brokers

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

To start trading - traders need a 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 trading market. Once a trader opens a trade position on their account, the broker will then place these trades on the market on behalf of the traders. Once the trader decides to close their trades, then the broker will close the trades and remove the trades 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 a trader can open a account with any online 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.

Trading Platforms

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

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

A trading 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 market and therefore be able to decide what direction to place their trades.

How to Open a Trade

Once a trader opens a buy/sell trade position, the trader has to hold onto the trade for some 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 transaction. However, because gold trading is speculative, xauusd trades may also move in the direction opposite of the trend & a xauusd trader should be ready to close their trades after the loss moves against their gold position by a specified number of gold pips so as to minimize further losses.

Why Trade XAUUSD

The number one of why to trade Gold is leverage. With trading leverage - traders can open their account with little capital and borrow the rest from the broker the money required to make trade transactions. For example a trader can open an account with $10,000 & the broker might give them leverage of 100:1 which means traders can borrow up to 100 times their trading capital, henceforth a gold trader will control $10,000 multiplied by 100 which is a total capital of $1,000,000 which a xauusd trader can open trade positions with.

However, traders should be careful when trading with trading leverage because leverage increases profits as well as 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 Trading Key Concepts topics.

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