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 like charts, exchange rate, gold quote, spreads, pips, xauusd leverage & margin traders should move to the next advanced step of learning about trading strategies. Learning and understanding strategies will require traders to take time to learn about strategies so that as 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:

Once one learns the basics of how to recognize simple patterns and trade these chart patterns using strategies, the online traders can formulate complex strategies that they can use to trade the market. Traders can then use these trading strategies to identify entry & exit points when they want to execute trades.

Traders must consider several factors before developing their trading strategy. Traders will have to determine the points at which they'll be buying or selling. Traders will have to determine their take-profit targets and also their stoploss order levels. Traders also will have to determine the money management principles that they will use when trading with their strategy. For illustration one might select to use the 2 percent gold money management rule which says that a gold trader should not risk more than 2% of their account equity on any one single trade. The trader also can use the high risk reward ratio gold money management rule, for example one 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 & selecting the trading strategy one then will write down their gold strategy & the trade rules of their strategy so as to form and come up with a complete trading system method to trade gold with.

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