Trade Gold Trading

TIPS: How to Improve Trading Results of XAUUSD Trading Systems

1. Define Simple Trading Rules & Follow the Trend

The simpler the trading system rules are the better. If the XAUUSD trading system rules too complicated, it will be very difficult to stick to the rules. Complicated trading systems are also very confusing. A simple Gold trading 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 losses, 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 system shows the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the trading 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 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 as to let your profits run because that isn't the trading strategy that is specified in your 11111 trading plan.

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

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