Kandi AppleThe speaker discusses their experience trading gold and the benefits it offers, including flexibility and high payouts. They recommend trading during a specific time period and using the RSI indicator. Multiple entries and proper management are key to success.
Gold Trading Tips and Strategies
Introduction
Gold is one of the most popular trading assets in the forex market. It’s flexible, volatile, and has a high payout. Moreover, it’s a currency that has stood the test of time, making it a trusted and reliable trading asset. In this article, we’ll discuss some of the strategies and tips for trading gold.
Why is Gold a Popular Trading Asset?
Gold is traded against other currencies, making it a valuable asset for traders. Compared to other assets, gold has the least spread, which means that the payout is higher, and it moves faster. Additionally, gold has a daily average that stays consistent, which makes it easier for traders to predict its movement.
Trading Gold: Best Time
The best time to trade gold is usually between 9.30 a.m. and 1 p.m. during weekdays. At this time, gold is likely to cross over with all the other pairs, leading to fluctuation up and down. This time bracket is also the most viable because it works with the stock market, leading to more liquidity in the market.
It’s vital to understand that anything traded at night won’t fluctuate as much; therefore, you’ll likely have to wait longer to see results.
Understanding the Spread
When trading gold or any other currency, it’s essential to understand the spread. The spread is the difference between the bid and ask price, and it controls the amount of money you make in a trade. Therefore, the smaller the spread, the higher the payout.
To view the spread on your Trading platform, check the pair under the left-hand side of the screen. The top line shows the first pair, such as XAU for gold, while the bottom line is the second pair, such as USD for dollars. The spread represents the difference between these two pairs, and it must pass through your entry line.
Making Money with Gold Trading
When trading gold, your primary goal is to make money. However, this requires proper management and strategy. Here are a few tips on how to make money with gold trading:
Multiple Entries
If you don’t have enough money to trade big lot sizes, consider making multiple entries simultaneously. Instead of putting in five dollars in one trade, do two or three entries of 0.5 dollars. This way, you’ll have three running entries that will earn you the same payout.
Buy High and Sell Low
The moment you enter a trade, buy high and wait for it to drop low so that you can sell. This strategy works best when trading gold since it moves faster, giving traders more opportunities to buy and sell. Don’t wait too long to sell, though; you might lose an opportunity as the market quickly goes up again.
Use RSI
You can use the Relative Strength Index (RSI) to determine the market’s momentum. RSI is a technical analysis that measures the strength of an asset’s price action. It compares the magnitude of recent gains to recent losses, indicating whether an asset is overbought or oversold.
Marking Up Trades
Marking up trades helps you understand market trends and make better decisions. To mark up trades, use the FIB Tool, which allows you to indicate support and resistance levels, the sweet spot, and other key trading areas. This way, you can quickly identify entry and exit points.
Conclusion
The forex market is one of the most volatile markets with traders constantly looking for opportunities to make money. Trading gold is one of the most popular ways to earn big payouts, but it requires a proper understanding of the asset and proper management. By understanding the spread, identifying the best time to trade, and using tools like RSI and the FIB Tool, traders can make money consistently.
