Gold Trading Demo Account - XAUUSD Practice Gold Trading
For any trader wanting to start trading gold online, the best way to begin is by using a demo practice trade account. This way a trader will learn about how to open and close Gold trades, how to open XAUUSD charts and place indicators on the gold charts & also get to know about the leverage and margin used to trade xauusd and how to use equity management so as to manage trading with leverage.
The first thing a xauusd trader should learn from their demo account is how to identify the direction of the xauusd gold prices so that they can know which side of the market to take.
There are 2 market directions up or down - when the prices are moving upwards a trader will buy xauusd and when they are heading down a gold trader will sell gold. The illustration put on display below shows to you how to identify an upward market direction & a downwards market direction.
How to Open Buy Trade
A trader will determine when to open a buy trade by using the xauusd gold price chart and placing indicators on this gold chart. Technical indicators are tools that calculate the market direction & the energy of this market direction.
For illustration the trade transaction below is a buy position - we shall explain how you as a gold trader can determine this for yourself when trading.
The first thing which can be interpreted from this chart is that the direction of market prices upwards. As a trader you also need to use a few indicators so as to get more information about this upwards trend.
The two indicators placed on this chart are the moving averages and RSI.
The two moving averages form a trading system that is referred to as the MA crossover strategy. A signal is generated/derived once the two moving averages crossover each other and both start to move in the same direction. There is a shorter period moving average and a longer period moving average MA like the 5 day MA & seven day moving average that has been used above.
- 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 indicator is the RSI; RSI indicator is used by traders to confirm the market trend direction. When RSI above the 50 center mark such as shown above it means that the prices are in general closing higher than where they opened.
In the above example because RSI is above 50 center mark then the upwards trend is confirmed by the RSI. As long as the RSI is above 50 it means prices of xauusd will continue heading and going upwards.
One will use these 2 trading indicators to create trading rules for opening a trade. These trading rules will form what is known as a trading strategy.
The rules are:Buy when both moving averages are moving upward and RSI is above 50 center line just as is illustrated above.
How to Open Sell Trade
To open a sell trade like on the exemplification presented below:
One would open a sell trade once both moving averages are moving downwards & RSI is below 50 center-mark. When RSI is below 50 level it means that prices are closing lower than where they opened and therefore the xauusd gold price trend is downwards.
Once a trader knows how to determine which trade to place using the gold trading charts the next thing to learn is how to open a xauusd chart on the gold trading platform & how to open new trade transaction.
Opening a XAUUSD Chart
One can open a new trading chart from the file menu on their trading platform like as shown below.
Placing Trading Indicators on a Chart
One also can place chart trading 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 trading platform such as 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 demo trading account provides traders with a good method and technique of studying about xauusd gold trading and the various tools used when trading gold. Traders can practice with this trading account without positing/investing money: the money used in this account is virtual. Traders can learn and practice trading with this account until such a time when they get enough knowledge and understanding to help them to start trading xauusd profitably & then after that they can open a live gold trading account & start trading with real funds.
Study More Lessons and Tutorials & Tutorials:
- How to Generate XAU USD Buy & Sell Trade Signals Using Gold Strategy
- Types of XAUUSD Traders
- How to Trade Support & Resistance Levels in XAU USD Charts
- How Do You Learn How to Add Oscillator Trading Indicator MetaTrader 5 Guide Course Guide?
- How Do You Activate a MT5 XAUUSD EA in MetaTrader 5 Software?
- Drawing the Correct Trend Line Trade Guide
- MetaTrader 4 Gold Platform/Software Tutorial Course User Guide
- How Do You Read XAU USD Charts Beginner Traders Tutorial?
- How to Trade Support and Resistance Levels in XAU USD Charts
