Gold Trading Demo Account - XAUUSD Practice Gold Trading
For traders new to online gold trading, start with a demo practice account. Learn to open and close gold trades. Open XAUUSD charts and add indicators. Understand leverage and margin for gold trades. Also learn money management with leverage.
The primary lesson a XAU/USD or gold trader should derive from their demo account is recognizing the direction of XAU/USD gold prices to determine which side of the market to engage.
There are 2 market paths up or down - when the valuations are moving upward a speculator will buy xauusd and when they are declining a gold speculator will sell gold. The visual aid presented beneath reveals to you how to recognize an upward market path & a downward market path.
How to Open Buy Trade
A trader decides when to initiate a buy order by examining the xauusd gold price chart and overlaying analytical tools onto it. Technical indicators function as instruments that compute the likely market trajectory and the strength behind that projected movement.
Here's an example: the trade below is a buy. We'll show you how, as a gold trader, you can figure this out for yourself when you're trading.
Initial analysis of this chart reveals an upward price trend. However, traders should incorporate additional indicators to gain deeper insights and confirm the strength of this upward movement.
The RSI and moving averages are the two indicators included on this chart.
The 2 moving averages make a trading system that's known as the MA crossover strategy. A signal happens when the 2 moving averages cross over each other and both start going in the same direction. There is a moving average for a shorter time and a moving average for a longer time, such as the 5-day MA and 7-day moving average that were mentioned earlier.
- When both moving averages are moving upwards the trend direction is upwards
- When both moving averages are moving downwards the trend direction is downwards
The second tool is the RSI. Traders use it to verify trend direction. If RSI sits above 50, prices generally close higher than they open.
In this scenario, since the RSI is positioned above the 50-center mark, it confirms an upward trend. As long as RSI remains above 50, XAUUSD prices are likely to continue rising.
A person can use these two tools to figure out rules for starting a trade. These rules then become what's called a trading strategy.
The rules are:Buy when both moving averages(MAs) are heading upward and RSI is above 50 center line just as is shown above.
How to Open Sell Trade
To open a sell trade like on the exemplification presented:
A sell trade can be initiated when both moving averages are trending downwards and the RSI falls below the 50 centerline. RSI below 50 indicates that prices are closing lower than their opening levels, signaling a downward trend in XAU/USD gold prices.
Once you know how to read gold trading charts and pick your trades, the next step is opening a XAUUSD chart on the gold platform and placing a new trade.
Opening a XAU USD Chart
A new trading chart may be launched via the file menu on your trading platform, as demonstrated in the image below.
Placing Trading Indicators on a Chart
One also can place chart indicators from the navigator menu on the trading software. To go to navigator menu that is illustrated below a trader can click the view menu on the top-left corner of the trading platform next to the file menu and choose navigator - short cut key-board keys are pressing CTRL+N to show this navigator panel.
One will also use this demo trading account to learn about the gold platform such as illustrated and shown below.
A trader can use the demo trade account to learn how to navigate the above platform and how to check their trading account balance just as is illustrated above.
This practice account gives traders a helpful way to learn about trading xauusd gold and the different tools they can use when trading gold. Traders are able to practice with this trading account without using their own money, because the money in this account is not real. Traders are able to learn and practice trading with this account until they feel ready to trade xauusd successfully, and then they can start a real gold account and trade with their own money.
Review More Lessons, Tutorials, and Guides
- How to Generate XAU/USD Buy and Sell Signals Using Gold Strategy
- Types of XAU USD Traders
- How to Trade Support & Resistance Levels in XAUUSD Charts
- How Do I Learn How to Set Oscillator MT5 Lesson Guide Tutorial Lesson Guide?
- How Do You Activate a MT5 XAU USD EA on MT5 Software?
- Drawing the Correct Trend Line Trade Lesson Guide
- MT4 Platform/Software Course Tutorial User Course
- How Do You Read XAU USD Charts Beginner Traders Tutorial?
- How to Trade Support and Resistance Levels in XAU/USD Charts
