How Do I Learn Trading Strategies
Once traders have completed learning about the basics of the market, this may include basic gold terms and basic concepts such as charts, exchange rate, gold quote, spreads, pips, xauusd leverage and margin traders should move to the next advanced step of learning about strategies. Learning & understanding strategies will require traders to take time to learn about trading strategies so that they can know about how they can develop their own.
Traders can learn how to develop & create their own trade strategies by first of studying about the often used strategies in market. After reading about the often used strategies in market traders then can develop their own strategies as they'll have learned the basics of how to come up with a trade strategy.
Most common strategies in market are:
| Moving Average Strategies |
MA Strategy MACD Strategy |
MACD Strategy RSI Strategies |
RSI Strategy Bollinger Band Trading Strategies |
Bollinger Bands Strategy Stochastic Strategy |
| Stochastic Strategy |
Once a trader learns the basics of how to recognize simple patterns & trade these chart patterns using strategies, the traders can formulate complex systems that they can use to trade the market. Traders can then use these strategies to identify entry and exit points when they want to open trades.
Traders must consider several factors before coming up with their strategy. Traders will have to determine the points at which they will be buying or selling. Traders will have to determine their take profit targets as well as their stop loss levels. Traders also will have to determine the money management rules that they will use when trading with their strategy. For example one might select to use the 2 percent gold money management rule which says that a xauusd trader should not risk more that 2% of their account equity on any one single trade transaction. The trader also can use the high risk reward ratio gold money management rule, for example a trader using high risk reward ratio of 2:1 - means that if a trader sets their stops at 20 pips, then they will set their take profit level at double this amount, this means the trader will set their takeprofit level at 40 pips.
After determining all these & choosing the strategy a trader will then write down their gold strategy & the rules of these strategy so as to come up with a complete system to trade gold with.
More Lessons and Topics:
- Analysis Chaikins Money Flow Trading Indicator Buy Trading Signal
- How to Trade Japanese Candles Patterns
- How to Place MACD Indicator on Gold Chart in MT4 Platform
- How to Read XAU/USD MT4 Charts Beginners Guide
- How to Place Relative Vigor Index, RVI XAU/USD Indicator in Gold Chart
- How to Use Technical Indicator Signals To Trade Gold
- How Do You Read MetaTrader 5 Fibonacci Retracement Levels in MT5 Platform?
- Gold Place a XAUUSD Buy Limit Order on MT4 Platform
