Counter Trend
A trader must create a gold trading strategy that they stick to when trading the online gold market. A trader must have the discipline to follow the rules of their gold strategy at all times. That's why it's better to come up with trade strategies that are profitable - profitable gold trading systems will be a lot easier to follow & stick to. This is because a trader knows that by following the rules of their gold system they will be successful.
A carefully designed strategy which has been back tested & proven to produce profitable trading results is one of the keys to becoming successful when trading the gold market. This type of strategy will make it easier for the trader to follow the rules of their gold strategy because they already know that the trading strategy is profitable, therefore maintaining the discipline to continue following the gold trading system will be much easier.
Successful gold trade strategies will also include:
1. Gold trading money management guidelines
2.Gold Trading Psychology Mindset
These 2 will greatly improve the success of any xauusd trading system.
However, Let us look at xauusd trading price action strategy before explaining more about gold trading money management and gold trading psychology.
Counter XAUUSD Trend Strategies
Counter gold trend strategies are best used to place trades on major resistance and support areas where xauusd trading price is likely to reverse. These are the support and resistance levels where xauusd price has not broken before.
However, this strategy isn't the most reliable gold trading method because trying to catch the xauusd market top or the xauusd market bottom is not the best strategy as the gold trend may continue to move in the original direction of the trend for quite some time.
This strategy should therefore only be used to trade gold that rarely xauusd trend. Traders can draw support and resistance levels of the xauusd trading price range and they will then use these levels to open trades - traders will open buy xauusd trades at the support level and traders will open sell xauusd trades at the resistance level. For a range bound market the xauusd trading prices will keep bouncing off these points and the traders will open trades and keep trading these xauusd trading price bounces.
Gold Trading Strategies Tips
Once a trader has come up with their gold trading strategy, they should also include the following so as to make their gold trading strategy more successful.
1.Gold Trading Money Management Rules
2.Gold Trading Psychology
Gold Trading Money Management Rules
Gold trading money management guide-lines should be part of your gold strategy - these rules will help you as a trader to manage risk. This means that you will use the 2 rules of gold trading money management - these are risk : reward ratio & draw down reducing method when placing your xauusd trades to determine lot size that you will open in the gold market. The most popular gold trading money management rule use in xauusd trading and the one that you should also add to your trading plan is the rule which says a trader should never risk more than 2% of their account balance on any one single xauusd trade.
To learn more about these two gold money management guidelines, traders should read the gold trading money management course that is on the learn gold trading courses section of this site under the gold trading key concepts lessons.
XAUUSD Trading Psychology Mindset
In order to become successful when trading the xauusd market a trader has to learn about gold trading psychology. The gold psychology or mindset that is required to become successful in gold trading is one that avoids the emotions of fear & greed while trading the xauusd market & is a mindset of total discipline that a trader will follow all their trading rules & their gold strategy and only trade with signals which are generated by their gold trading strategy. With discipline a trader will not trade unless their gold strategy gives a trading signal. A trader will have the mindset of only following their gold system 100% all the time without second guessing the xauusd system. A disciplined trader will also not place trades in xauusd market just because the xauusd market has started to move upwards or downward, instead a trader will wait for a signal to trade to be generated by their gold trading strategy.
In order to study more about gold psychology and how to manage emotions while trading the online gold market a trader can read the gold trading psychology lessons from the learn gold trading courses section of this site under the gold trading key concepts courses.
