Learn Basics of Trading Strategies
For traders wanting to use strategies to trade the market there are a few other basics that a trader should know that will help to make the strategy being used become more successful.
After a trader has learned about technical analysis of indicators & the analysis of charts, a trader will need to come up with a strategy. The strategy that a beginner trader uses can be based on the following most oftenly used trade strategies in Gold.
| MA Method |
Moving Average Method MACD Method |
MACD Method RSI Strategies |
RSI Method Bollinger Bands Method |
Bollinger Bands Strategy Stochastic Oscillator XAUUSD Strategies |
| Stochastic Method |
A trader can learn about basics of how to come up with a strategy by learning from the above examples strategies.
Once one has come up with their gold strategy, they should also include the following to make their gold strategy more successful.
1.Trade Money Management Rules
2.Trade Psychology
Trade Money Management Rules
Gold trading money management guidelines should be part of your strategy - the rules will help you as a trader to manage risk. This means that you'll use the two rules of money management - these are risk reward ratio & drawdown reducing method when placing your trades to determine the lot size that you will put in the market. The most popular gold equity management rule use in xauusd & the one that you should also add to your trading is the rule that says that a trader should never risk more than 2 % of their account equity on any one single trade.
To learn about these two gold equity management rules traders should read the trading money management course that is on the learn gold courses section of this site under the trading key concepts lessons.
XAUUSD Trade Psychology Mindset
In order for one to become successful when trading the market one has to learn about gold psychology. The gold psychology or mindset which is needed to become successful in gold trading is one that avoids the emotions of fear & greed while trading & is a mindset of total discipline that the trader will follow all their rules & their gold strategy and only trade with signals which are generated by their strategy. With discipline one will not trade unless their system gives a signal. One will have the mindset of only following their gold system 100 % all the time without second guessing the system. A disciplined trader will also not place trades in market just because the market has started to move up-wards or down-ward, instead one will wait for a signal to be generated by their gold strategy.
In order to study more about gold psychology & how to manage emotions while trading the market a trader can read the psychology lessons from the learn gold courses section of this site under the trading key concepts courses.
