Preface
Due to the volatility of gold prices, gold attracts a large number of investors. It has become the most well-known and the highest trading volume of precious metal in the trading market. But as a novice, if you want to generate significant profits, you have to be fully prepared. In addition to trading with a combination of fundamental and technical analysis, you need to consider other aspects as well.
How to start trading gold for beginners?
Understand the factors that affect the price of gold
The price of gold is usually influenced by four factors, including supply and demand, geopolitical events, natural disasters, and the central bank’s practices in managing monetary policy. On the other hand, gold has an inverse relationship with the market outlook. If the market outlook is positive, the gold price may go down and vice versa. If you consider all these, you will be able to control the timing of opening and closing a position.
Identify the trading strategies you can use
Gold can be traded using either short or long-term strategies. The former is suitable for scalping or day trading, while the latter has a longer time to hold the underlying gold asset.
In either case, the knowledge you have will come in handy. In particular, it is important to understand how unstable the economy is and how the gold price is soaring.
Remember, there is a negative correlation between gold and the US dollar. This means that when the US dollar starts to lose its value, the gold price will increase at the same time or vice versa. Keeping up with the US news will help you find trading opportunities for gold.
Gold has a positive correlation with the Japanese yen. Both are considered safe haven assets because they have shown a strong correlation over the past century. You can use their correlation to predict the gold price.
The metallic currency pair XAUUSD usually moves with the trend. When trading, you will find that the trend trading strategy may help you get the best result and achieve a great result in trading XAUUSD along with the trend.
Certain technical indicators are very useful for gold trading, such as Fibonacci retracement, moving averages, support and resistance levels, and price action. You will learn more about these as you go along.
As a beginner, you can choose between automated trading or manual trading to make profits from gold trading. You can copy trades from a strategy/signal provider (SP) that trades XAUUSD. Choosing the best SP will help you to increase your chances of earning profits.
Develop a trading plan
From now on, you must make a trading plan and follow it. It will help you develop good trading habits. Further, do research before trading and think twice before making a decision. In order for you to make consistent profits, your plan needs to cover different aspects, including risk management, trading goals, mental preparation, entry and exit rules, trading performance analysis, and following the rules of Forex trading.
Choose the right trading platform
The platform you choose depends on the type of gold you want to trade or invest in. The online trading platform allows you to trade gold, stocks, futures, ETFs, etc. through Forex.
Regardless of the financial instrument, it is crucial to choose a platform that offers efficient execution and prioritizes the safety of your funds. To help you make a better decision, use a demo account to test the trading platform and services.
Open a demo account
Once you have selected a trading platform, you can start trading. You can start with a demo account to test the strategies that fit you and to learn how gold trading works. Generally, it helps you to understand the process better if you gain practical experience. Once you are confident enough to trade and have learned the basic skills, you can open a real trading account.
Self-improvement
The opportunities to make profits from trading gold are changeable and can occur at different points in time. Investors need to continuously improve themselves, understand the trading process, master the strategies, and accumulate experience and knowledge to turn them from a novice to master trader.
Ready to build your wealth? Start trading with HXFX Global today!
How to trade on HXFX?
1. First, click here to register an HXFX account for free.
2. Next, download the APP and log in to complete the real-name authentication.
3. Contact customer service to receive your exclusive free trial bonus.
4. Click “Quote”, select the product you want to trade, then click “Trade”. Then you can click “Sell” or “Buy” to start your trading according to the trends.
5 advantages of foreign exchange trading
1. Leverage system
Investing a small amount of money will bring greater benefits, but may also bring greater risk of loss.
2. Low transaction costs
There are basically no handling fees, government taxes, etc.
3. Two-way transaction
Whether you are buying first and then selling in a bullish trend, or selling first and then buying in a bearish trend, you can get profit.
4. 24 hours trading
It is available in 24 Hours, investors can trade according to their own time.
5. High liquidity
In the foreign exchange market, investors could exchange foreign currency at any time, even complete their transactions in a short time.
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Disclaimer: Information above can only be use for references and doesn’t represent our platform’s opinions.
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