Learn Silver Trend Following Strategies
A trader must create a silver strategy which they stick to when trading the online xagusd market. A trader must have the discipline to follow the rules of their silver trading strategy at all times. That's why it is better to come up with trading strategies which are profitable - profitable silver trading systems will be much easier to follow & stick to. This is because a trader knows that by following the rules of their silver system they will be successful.
A carefully designed trading strategy which has been back tested and proven to produce profitable trading results is one of the keys to becoming successful when trading the xagusd trading market. This type of strategy will make it easier for silver trader to follow the rules of their silver trading strategy because they already know that the strategy is profitable, therefore maintaining the discipline to continue following the silver system will be much easier.
Successful silver trading strategies will also include:
1. Silver money management guidelines
2.Silver Trading Psychology Mindset
These two will greatly improve the success of any xagusd trading system.
However, Let us look at xagusd price action strategy before explaining more about silver money management & silver trading psychology.
XAGUSD Trend Following Strategies
Silver Trend following strategies are based on first of all determining the overall market trend, whether the xagusd trading market is moving upwards or it is moving downwards. After determining the xagusd trading market silver trend the trader will then only open trades in one direction.
Upward silver trend - in an upwards silver trend xagusd prices keep moving up, and here the trader will keep opening buy xagusd trades.
Downward silver trend - in a downward silver trend xagusd prices keep moving down, and here the trader will keep opening sell xagusd trades.
There are various strategies of determining the xagusd trading market trends and the two most popular ones are:
Silver Trend lines - traders will draw silver trend line on the xagusd price chart to determine the current general market movement. Once the silver trend direction is determine a trader will then open xagusd trades once the xagusd price touches the silver trend line or when xagusd price is close to the silver trend line. The trader will only open trades in direction of the trend.
When markets form trends, the silver trend will have a lot of momentum and this momentum will mean that the xagusd prices will keep moving in that direction for a period of time that lasts for quite some time.
Trading the silver trend is one of the most profitable way to trade the xagusd trading market if a trader catches a silver trend that has already formed they can make a lot profit just by trading in direction of the silver trend and the longer the silver trend stays the longer a trader can continue to make profits. Some major silver trend might last for years and these can prove to be the most profitable setups especially when they last for years.
Moving Averages Strategies - Another silver trend identification strategy is the use of the 20 day moving average, and when xagusd prices are above this moving average the xagusd trading market is bullish and if xagusd prices are below this moving average the xagusd trading market is bearish.
The 50 day moving average is also used for determining the medium term silver trend, while the 200 day moving average is used to determine the long term silver trend of the xagusd trading market.
Traders can also use 2 moving averages to form the moving average cross over technique, this method will have a shorter period moving average & a longer term moving average & these 2 will be use to determine the current market trend. For examples a trader can use the 5 day and 7 day moving averages, & for this strategy the silver trend is upward if both these moving averages are moving in the upwards direction and the silver trend will be down if both these 2 moving averages are moving downwards.
This system will indicate the silver trend is about to change one these 2 line cross over each other. This signal will be a god time to close trades if a trader has open trades.
XAGUSD Trading Strategies Tips
Once a trader has come up with their silver trading strategy, they should also include the following in order to make their silver strategy more successful.
1.Silver Trading Money Management Rules
2.Silver Trading Psychology
XAGUSD Trading Money Management Rules
Silver money management guidelines should be part of your silver trading strategy - these rules will help you as a trader to manage risk. This means that you'll use two rules of silver trading money management - these are risk : reward ratio & draw down reducing method when placing your xagusd trades to determine lot size that you'll open in xagusd trading market. The most popular silver money management rule use in xagusd trading and one that you should also add to your trading plan is the rule that says a trader should never risk more than 2% of account balance on any one single xagusd trade transaction.
To know more about these two silver trading money management guidelines, traders should read the silver money management tutorial that's on the learn silver trading lessons section of this web-site under the silver trading key concepts lessons.
Silver Trading Psychology Mindset
In order to become successful when trading the xagusd trading market a trader has to learn about silver trading psychology. The silver trading psychology or mindset that is required to become successful in silver trading is one that avoids the emotions of fear & greed while trading the xagusd trading market and is a mindset of total discipline that a trader will follow all their rules & their silver trading strategy & only trade with signals that are generated by their silver strategy. With discipline a trader will not trade unless their silver trading strategy gives a signal. A trader will have the mindset of only following their trading system 100% all the time without second guessing the xagusd trading system. A disciplined trader will also not place trades in xagusd trading market just because the xagusd trading market has started to move upwards or down, instead a trader will wait for a signal to trade to be generated by their silver trading strategy.
In order to study more about silver psychology and how to manage emotions while trading the online silver market a trader can read the silver trading psychology tutorials from learn silver trading lessons section of this web-site under the silver key concepts lessons.
