TIPS: How to Improve Trading Results of XAUUSD Trading Systems

1. Define Simple Trading Rules & Follow the Trend

The simpler the tradingtrade system rules are the better. If the XAUUSDtrade system rules too complicated, it'll be very difficult to stick to the rules. Complicated tradingtrade systems are also very confusing. A simple Gold tradingtrade system makes it easy to follow the rules.

2. Eliminate Risk Quickly and Let Profits Run

Minimizing risk is far more important than making money when it comes to online trading. Our first objective in trading is to make the trade less risky. We do this by entering only high probability trading setups, setting stop loss orders, cutting losses quick & never averaging down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable trades are only kept open as long as the trading system illustrates the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the tradingtrade system.

How long you keep your trades open will depend on what type of XAUUSD trader you're, If you are a day trader than you will only hold your trades transactions open until the end of the day & close the trades at the end of the trading day even if the market trend still shows signs of continuing - this is because you're a day trader and you'll only hold open trades until the end of the day - you cannot just hold on your trades overnight just so that to let your profits run because that isn't the trading strategy that's specified in your xauusd trading plan.

3. Choose the Right Trading ScheduleTo maximize the profitability of your XAUUSD tradingtrade system find the most active trading hours for Gold and trade during these hours only.

4. Use Capital Management RulesAlways risk less than 2 % of your total trading equity per trade transaction. With compounding, you'll be surprised to see how quickly your Gold trading account grows once you start to trade with a profitable Gold tradingtrade system.

5. Keep a Gold Trading JournalKeeping a log of all your trades will help you to become a better and better & will help you follow the rules of your trading system. A journal also will keep track of your profitable trades and losses & you can analyze why a set-up was profitable and why it was not.

6. Set Take-Profit TargetsEstablish a daily, weekly or monthly profit targets. Once you hit this target. This will stop you from over-trading & will also stop you giving back your profits the currency market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening transactions only when you have the probability of making three times what you're risking.

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TIPS: How to Improve Trading Results of XAUUSD Trading Systems