Trading gold is the dream job of many people. You might take the trades in the currency pairs but when you can say you trade gold for a living, it sounds cooler. Well, it’s not about the fancy wording, but rather about the profit factors. Gold trading can be extremely profitable and easy due to the nature of the asset. However, rookies in the UK don’t have the skills to trade gold with a high level of accuracy. They are making silly mistakes and losing a decent amount of money. But if you stick to 4 simple rules you can trade the gold like the professionals. Let’s dig into the detail.
Find the trend
You should have the ability to find trends in the market. Without finding the trend in the gold market, it is nearly impossible to make a big profit. Elite traders can change their lives because they know the proper way to analyze the trend. Trend analysis needs to be done in the daily time frame. Only then you will be able to advance to the next stage. When you analyze the trend, make sure you are not listening to rumors. Use the daily chart and try to find a suitable trading spot.
A valid trend line needs to be drawn based on three connecting points. If you miss the connecting points in the trend line, it will be nearly impossible to make a big profit. Use the demo platform and draw the trend lines in different time frames. After you build the confidence to draw the trend line, you will be able to make some great progress.
Simplify your trading method
You must simplify the trading method to survive in the trading industry. If you trade with a complicated trading method, it will be tough to make progress. The professional traders are not able to trade in the lower period because they know a lower time frame doesn’t have a high win rate. However, rookies try to place the trade in the lower chart with the hope that they can take advantage of the market volatility and make a big profit.
Analyze the news
The professional traders always analyze the news. They often use the professional platform from Saxo since it has an integrated news option. If you are looking for a great platform get it here. Once you have access to the live news feed, it won’t be hard to make some big profit. During the news analysis, you need to focus on the economic news of the country that produces the most gold. Focus on the U.S dollar index as well, since the price of gold is measured in U.S dollars. After learning about the complicated method to analyze the major news, you are going to make a decent profit at the market volatility. Take advantage of the news factors to make some serious cash trading gold.
Trade with a valid routine
You have to trade the market with a valid routine to make progress. Professional traders have a very organized trading routine by which they take the trades and make some huge profit. Creating a trading routine might be a challenging task but if you follow the core concepts of trading, it won’t be hard. Take help from the professional traders and they will guide you and help you create a simple trading routine. Things might be tough at the initial stage, but once you care about a trading routine, you will feel the change in your trading method.
Success depends on your approach. If you trade in an organized way, you can expect to make some serious cash. Stop thinking about the low-quality trade setups and trade the market with discipline. Learn new things form the losses you face in gold trading.