Forex trading: Gold trading strategy

 

Gold trade is always a risk able factor. It is very hard to predict the right time for the gold trade. Gold trade is profitable only for the professional trader. A beginner can get some profit from gold trade but at the final time, they always a loser.

Gold price increase Or decrease  factor:

1.       USD price: Both USD and gold trade as a base currency.If USD price decrease for any report or any political matter like an election or any disease report like COVID-19, Gold price increase. Because most of the investor buy gold as an alternative currency.

Alternatively,  when the USA different financial report comes positive and USA political situation in good condition, Gold price decrease.

2.       Condition of the world: Any unstable condition for any reason (like War, Disease) increase the gold price because investor buy gold as a safe investment . Alternatively when the world comes in a stable condition, world price decrease.

3.       Gold supply: If gold mined decrease, gold price increase due to public demand. On the other hand, increasing gold mine results decrease the gold price

4.       USA Interest rate decrease: When USA interest rate decrease, investor buy gold because they don’t get a good return from bank deposit and convert their money to buy gold.

5.       Jewelry Market demand increase: When jewellery demand increase due to different festival season, the gold price also increases.





How to trade XAU vs USD



First, you need a good analysis with fundamental news that Gold has a strong possibility to increase or decrease price. Then start trading as per analysis with a small lot. Always use stop-loss by analysis technical chart (like candlestick chart) and also use take profit. If you lose any reason, you can place two small buys again. This small buy or sell will make an average price and will increase your gaining probability more.

 

Example----You want to start to buy XAU/USD in 1800

 Buy small lot 0.01

Stop-loss 1740 and take profit 1850

 

If XAU/USD  will go down position at 1780, again buy 0.01 small lot.

 

If XAU/USD  will more go down position at 1760, again buy 0.01 small lot.

 

So your buy average price goes to 1780.

When the XAU/USD   price again touch 1800, you will be a gainer.

 

In this way, you can increase your profit. In this strategy,   accuracy is 70%



Always remember XAU/USD Forex trading only suggest for a professional trader, not for a beginner.

Location: Bangladesh

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