Trading Account Management

Process below describes the process of formulating gold money management and practical advice on developing your own equity management system in Gold Trade - account management.

1. Keep the Necessary reserve (over and above the online broker margin requirement)

This reserve is needed for unusual situations and it should be not less than 50% of invested equity. It's the first rule of account management in margin trading definition for opening trade orders. However, many experts and analysts advice more reserve of about 70 % - 90 % of invested account capital for safe operation in xauusd.

2. Do not to invest more than 2% - 6%

This is one of the principle that helps to avoid bankruptcy: never invest more that 2% on one market and do not to invest more than 6% in the total open trade positions.

3. Never risk a loss of more than 2% of your invested money on any one single trade

This is not the same as above, the above is never invest more than 5 %, this is never to lose more than 2% on a single trade position. In this case a gold trader risks only to lose a small portion of his equity with an unprofitable order.

4. Diversify

Use optimal investment of your funds is that you should diversify to some degree. Just In case one trade losses, the order can be covered by profits of another trade.

5. Xauusd trading money management guidelines should be well written down

On a piece of paper or better still in your plan. If you open orders then these orders should be within your gold equity management guidelines.

6. Define your stop loss & takeprofit levels

When you are trading put your stop-losses in order to avoid any huge losses. profit taking levels will ensure you get additional profit by taking money out of the market. Analyze the situation & predict the future movement direction of the price action & open trade orders accordingly. You can even use indicators and volatility of the price to know where to place these orders.

7. Define of a possible loss or profit before opening a trade

Consider only opening trades when you've got the chance to get profit against loss ratio of 3:1. If you can't do it then don't open the order.

Gold money management should seek to bring maximum profit to the gold traders account, keeping profitable trade position orders as long as possible is a good strategy. Hence, if as a trader you make some profitable trade orders you as a trader can have goods results.

8. Try to follow the trading rules of opening and closing the trade orders specified in your trade plan.

That way you'll get consistent results required for making profits in market.

9. Do-not revenge against the market

In this case, you'll not be interpreting the situation but you will just be based on emotions and you'll lose more money.

10. Timely rest

Don't trade when you're exhausted, no matter how tempting the situation might seem, you may not get the profits which you can if you were to trade based on your schedule.

Considering these - Trading Account Management Rules and Guidelines can make you trade profitably. Try to develop your own equity money management strategy that provides you with good trading profits.

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