The Successful Gold Traders Plan
As the old expression goes, most people don’t plan to fail, they only fail to plan. Having a game plan is crucial to your success as a gold trader. You need to understand why you are getting into a position before you decide to jump into a gold trade. You will also need to have an exit strategy before you ever take on a trade. Furthermore, you need to make sure that you follow your plan. Never attempt to take revenge on the market or get into a situation where you beat yourself up over a trade gone badly. There is no room for emotions in the game of trading. Every loss needs to be treated as a learning experience. Here are some helpful tips:
Make some goals for what you want to accomplish
If you are looking for a get rich quick plan, understand that you may find yourself in a get poor quick outcome. Make sure that you have realistic goals for what you want to achieve when you are trading gold. Are you looking to make gold trading a hobby or a professional living? What resources and educational materials are you going to need to acquire and study in order for you to achieve your goals? Be sure to employ proper money management techniques that protect your capital. Like any successful person in life it will take much study and practice to make it to the top and in trading it is only the top percentile that makes any money in this game.
Keep track of your every move
The challenge for all traders is to maintain discipline in their trading plan. A great tool to use is a journal of your trading activity. Weather you use an excel sheet or a paper book to do it, write down every trade you make and also the reason that you made that trade. Over time you will be able to see the progress that you have made as a trader and also be able to recognize further areas for improvement. Once again this all helps you to maintain discipline as a gold trader.
Build your System
Some of the things you will want to incorporate into your gold trading plan are the specific hours you trade in the day, the types of chart analysis that you use, the size of lots that you limit yourself to trading, the percentage of your account that you limit for any given trade. One of the best ways to create a plan is by practicing with a demo account. That way you can test your trading plan before you risk any of your own money.