Jun 10, 2020
Four ways to trade gold like a pro trader
Everyone is thinking about the currency market. Rookies think currency trading is the only way a trader can make a profit. But this is not the case. Trading the commodity market is much more profitable and it can offer you huge profit-taking opportunities. Though there are plenty of assets in the commodity market, we will be focusing on the gold market.
Things are very sophisticated when you deal with the precious metal market. As a gold trader, you have to be careful about the trade execution process as this will help you to make consistent profit at any market condition. For your better understanding, we will be highlighting the top four ways to trade the gold market. Let’s start the journey.
Trend trading method
The price of gold loves to be in the trend. You barely see a ranging market. So, if you try to take trades in favor of the retracement, you might not have a bright future in trading. You have to focus on the trend trading method because it is by far the most efficient way to make money from gold trading. Things might be tough at the initial stage, but once you learn to take the trades with discipline, you will know trend trading is the only way by which you can survive. The other fancy trading method is there to boost your profit. Ignoring this basic strategy makes you the ultimate loser. If you are still in doubt, trade against the trend and soon you will stop trading gold.
Rely on the chart pattern
Chart pattern trading technique very effective in gold trading. But for that, you must have access to a professional trading platform. Click here to contact the elite team of Saxo. They will guide you in opening the professional trading account. Once you have access to the professional account, you can use the trading platform and execute random trades without having any trouble. Though it will be complicated to some traders the advanced tools are there to ease things at trading. Try to focus on the continuation chart pattern. Unless you have years of experience in trading the gold market, you should not focus on the reversal chart pattern. Once you become good at trading the continuation chart pattern, you will be able to make a big profit.
Develop strong risk management skill
You must have strong risk management skills to trade gold. Taking trades without analyzing the risk factors is a great way to lose your capital. Things might be tough at the initial stage but once you learn to take the trades with discipline, you will be able to make a consistent profit without having any trouble. To focus on the risk management policy, you need to trade with discipline. Forget about the complicated price dynamics and trade the market with discipline. The maximum risk is 2% per trade. For novice traders, it should be 1%. Breaking the rules of money management might help you win some big trades but considering the long term consequence, you will blow up your account.
Focus on mental stability
Having a stable mindset is very crucial for gold traders. You can’t make quick decisions in trading unless you trade the gold market with a stable mindset. A stable mind can accept losses with a smile. You might a robust trading method but if the money management is poor, you are bound to lose in the long run. On the other hand, if you have an average trading edge and strong risk management policy, you are most likely to make huge profits. All of these things will be possible when you have control over your emotions. So, focus on mental stability to become good at trading.
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