TIPS: MAXIMIZING PROFITS OF Gold SYSTEMS
1. Define Simple Trading Rules & Follow the Trend
The simpler the xauusd trading system is the better. If the trading system is too complicated, it will be very difficult to stick to the rules. Complicated gold trading systems are also very confusing. A simple trading system makes it easy to follow the trading rules.
2. Eliminate Risk Quickly and Let Profits Run
Minimizing risk is far more important than making money. Our first main aim in gold trading is to make the trade less risky. We do this by entering only trade setups, setting stop losses, cutting losses quick and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable trades are only kept open as long as the gold trading system shows the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the xauusd trading system.
3. Choose the Right Trading Instruments
Once you have your gold trading system, you will want to start testing it on a demo xauusd trading account. A trading system will give different results for each gold.
To maximize the profitability of your trading system find the most active market hours for a chosen gold trading instrument & trade during that session only.
4. Use XAUUSD Trading Money Management Rules
Always risk less than 2% per gold trade transaction. With compounding, you'll be surprised to see how quickly your gold account grows once you start to trade with a profitable trading system.
5. Keep a XAUUSD Trading Journal
Keeping a log of all your xauusd trades will help you to become a better and better and will help you follow the trading rules of your trading system. A gold trading journal will also keep track of your profitable trades & losses & you can analyze why a trade setup was profitable & why it was not.
6. Set take Profit Targets
Establish a daily, weekly or monthly profit targets when trading the gold trading market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the gold trading market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening gold trade transactions only when you have the probability of making 3 times what you're risking.
Examples of signals generated by our gold trading system
Example 1: Buy Gold Signal and Sell Gold Trading Signal Generated By Gold Trading System
Buy signal is generated by the indicator based trading system, then an exit signal is generated before another reverse sell signal is generated on this xauusd chart
Example 2: Two buy signals generated by Trading System
Two buy signals are generated during the upwards trending market
Example 3: Exit Signal Generated by Trading System
Examples of Gold Trade Signals Generated by a Gold Trading System
Other Tips
Learn Gold Education
The first tip is to learn about the Gold Trading Market (Learn XAUUSD Lessons), those who don't learn the required trading knowledge from the various gold trading tutorials online will not improve their gold trading results no matter how many tips they have read. By not learning gold trading, these traders will keep making the obvious mistakes made by gold novice traders without even realizing what they are doing, XAUUSD is a wide topic and in order to make profits a trader will have to learn gold trading first.
Get a Gold Trading System
A xauusd trading system is a must for every trader, a trading system is used to determine what gold trading decision to take. A gold trading system gives a trader an edge over others who don't have a gold trading plan. A good gold trading plan is one that is back-tested and proven to produce profitable xauusd trades. After coming up with your trading system you should back-test it on a Demo Gold Trading Account.
Learn Gold Money Management
Learn about The Various Gold Trading Money Management Lessons, don't attempt to trade the online gold market if you do not have gold trading money management guidelines. The 2 gold management guides that you must learn are:
What is Gold Trading Money Management
Gold Trading Money Management Methods
Learn about Gold Trading Leverage & Margin
If you don't know what is xauusd leverage and how it works and how it can affect your gold trading margin, then you will not make any money in the xauusd market and you will lose your money in the xauusd trading market.
Have a Written Gold Trading Plan
A gold trading plan will take into account all the above gold trading tips and summarize them within one document that you can use to trade the online xauusd market.
In General
The first goal should be taking your time to really determine what your gold trading goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to start Gold Trading. It is essential to keep all the three goals in mind when executing all of your gold trade transactions but at the same time this is not a black & white guide to gold trading success.
The first thing is to remember that you really need to work with short term xauusd trades until you become profitable and know how to properly monitor these trade transactions. You should trade gold trading short term because this way you can monitor your gold positions and quickly close any gold trading position whose trading signal setup reverses. In order to truly benefit from the gold trading system you have to be willing to take up the effort to watch the xauusd market to see exactly how long you can keep your money invested in the online gold market. Making short term gold trading investments will help you to monitor your xauusd trades and control all the risks, do not leave gold orders open when you are away from your computer or when you are going to sleep, close all gold trade transactions & only open gold orders when you can monitor them.
Although it is very important to increase the amount of xauusd trades that you are investing each time that you trade - some gold trading guidelines should to be followed. The general rule of gold trading tends to be never to trade more than two percent of your total gold trading account equity. This of course makes sense when you have a lot of money in your gold trading account but what if you only have a couple of hundreds. Two percent of $10,000 equals out to be $200. Even though it is safer to follow this rule it really does not make a lot of economic sense with smaller gold trading accounts. If you are investing on Gold this is when gold trading leverage kicks in to effect and makes all of the difference. In General the more gold trading capital you have to invest the better in terms of gold trading money management.
Final suggestion is taking a bit of time to make sure that you get all of your gold trading details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense in gold market than anywhere else. Although this might require more time & effort to build up your gold trading profits it will save you money in the long term.
Trying to keep your thinking as clear as possible will make your gold trading journey easier but knowing when to break from the norm is also important. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps and logic you will be able to continue making profits. Gold is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.
