Gold is traded over the Forex market, known in part for its incredible asset class and international appeal. Managing your gold investments requires experience, skill, and learned behaviours that will serve you well in minimizing risk and maximizing reward. With that in mind, let’s take a moment to review five gold trading secrets used by successful traders to reap big profits.
Focus On Different Day Patterns In Intra-Day Charts
More often than not, trading over the course of a day will resemble itself in the days that follow. In fact, by overlapping one day’s worth of trading with the next, you can see how closely similar they look. A general rule of thumb when using this secret is that whatever pattern you recognize will generally begin slightly earlier in the day with each consecutive day. This is because there are other people also looking to take advantage of market predictability for their own gains.
Move Exit Order To Entry Price
A good tool for breaking even, it helps to move your exit order to your original price if and when you begin making money off of the investment. This will mean that if you are buying and selling gold in the short term, then you will have a zero risk from your original investment.
Diversify Your Portfolio
One of the biggest mistakes individuals will make when investing in gold is to put all of their financial eggs in a single basket. While it may be particularly easy for you to do so, you run a much higher risk through your lack of diversification. Whether you make use of spot trading other metals like silver or go into currencies, you can trade gold and diversify without leaving the Forex market. This isn’t really as confidential as our other gold trading secrets and is more of a best practice, but it’s worth reiterating.
Pay Attention To International Affairs
Do you understand the role gold plays in world economies? If you want to turn major profit, then pay attention to current events. Gold is seen as a relatively stable safe haven when it comes to price fluctuation. When there is increased instability in markets, people flock to gold, driving up the price. Look for signs of this instability.
Consider Creating An Automated Trading System
With trial and error, you can automate the entire process based on what you know, allowing for quicker responses to the market and less vigilance on your part. This is one of the most useful gold trading secrets enabled by technology. This will give you the time to better develop the underlying strategies for gaining wealth through gold, as opposed to carefully watching for changes in the market.
