TIPS: How to Improve Trading Results of XAUUSD Trade Systems

1. Define Simple Trading Rules & Follow the Trend

The simpler the trading system rules are the better. If the XAUUSDtrade system rules too complicated, it'll 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 system 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 transaction less risky. We do this by only entering the high probability trading setups, setting stop loss orders, cutting losses quick & never averaging down, and letting the profitable trade positions run for a while, just long enough, but not too long, so as to increase profits. Profitable trade positions are only held open as long as the trading system illustrates the trend is in place, these transactions/positions should be closed immediately once and as soon as your exit trading signal criteria is generated by the trading strategy.

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'll 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 displays 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 as a trader can not just hold on your positions overnight just so that to let your trading profits run because that isn't the trading strategy that's specified in your xauusd gold trading plan.

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

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

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

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TIPS: How to Improve Trading Results of XAUUSD Trade Systems