How To Trade Gold In The Forex Market

[moonchild]

Trading gold in the forex market is very common among traders, Gold as an asset is known to be very unstable and volatile, if you do not know how to trade volatile pairs I will highly discourage from trading this beast, it can wipe your account in seconds with no remorse, so how can you trade Gold in forex? that is what you are going to find out in this guide.

You have to have a marginally big account, you should not trade gold if your account is below 100$, one move in opposite direction can make take your drawdown to -50% yo do not want that to happen to you.

Always scalp, this is my default mindset on Gold, I do not hold positions just because it reverse and take away all the profits I have been stacking up, so because of that I go in and out quickly, but this totally for me, you might appreciate a different style of trading and you should definitely go for it.

Short it, this is my little secret, I always sell it, most of the times that I try to buy it, I end up on the losing side, but when I scalp on sell, I make profits.

 

[FXOchartist]

Trading on gold could be profitable and risky depending on the knowledge and conditions of the market itself, choosing a broker low spread like FXOpen gives more benefit because possible to take quick profit on gold with scalping, however not all traders are suitable with scalping trading strategy because need higher concentration and sometimes the common problem in scalping is dealing with emotion.

Trading on gold without good control emotion only will blow accounts for a short time when the market is very volatile. To start gold trading indeed better to use bigger capital although possible to start with low capital.

 

[marym]

It's important to note that while shorting gold may have worked for you in the past, it's not always a guaranteed strategy for success. As with any trading strategy, it's important to analyze market conditions and make informed decisions based on your own risk tolerance and trading plan.
In addition, trading gold requires a thorough understanding of technical analysis and market trends. Traders should keep an eye on economic news and announcements that may affect the price of gold, such as changes in interest rates or political developments.
Using risk management strategies such as stop-loss orders and proper position sizing can also help to minimize losses and protect your trading capital.
Overall, trading gold in the forex market can be a lucrative opportunity for experienced traders with a solid understanding of market dynamics and risk management strategies.