TIPS: How to Improve Trading Results of Gold Systems
1. Define Simple Rules & Follow the Trend
The simpler the system rules are the better. If the Gold trading system rules too complicated, it'll be very difficult to stick to the trade rules. Complicated trading systems are also very confusing. A simple XAUUSD system makes it easy to follow the strategy rules.
2. Eliminate Risk Quickly and Let Profits Run
Minimizing risk is far more important than making money when it comes to online trading. Our first objective in trading is to make the trade less risky. We do and achieve this by entering only the high probability trading set-ups, setting stop loss orders, cutting losses quick and never averaging down, & letting the profitable trades run for a while, just long enough, but not very long, in order to increase the profits. Profitable trade transactions are only kept open as long as the system shows the trend is in place, these positions should be closed immediately once your exit trading signal criteria is generated and given by the trading system strategy.
How long you keep your trades open will depend on what type of XAUUSD trader you're, If you are a day trader than you'll only hold your trades/transactions open until the end of the day and close the trades at the end of the trading day even if the trend still shows signs of continuing - this is because you are a day trader & you'll only hold open trades until the end of the day - you can't just hold on your open trades overnight so as to let your trading profits run because that is not the strategy that is specified in your gold plan.
3. Select and Choose the Right Trading ScheduleTo maximize the profitability of your XAUUSD trade system find the most active trading hours for Gold and trade during these market hours only.
4. Use Money Management RulesAlways risk less than 2 % of your total trading equity per trade transaction. With compounding, you will be surprised to see how quickly your Gold account grows once you start to trade with a profitable Gold trading system.
5. Keep a Gold JournalKeeping a log of all your positions will help you as a trader to become a better and better & will help you as a trader follow the trading rules of your system. A journal will also keep track of your trading profitable trades & losses and you can analyze and interpret why a set-up was profitable & why it wasn't.
6. Set TakeProfit Targets - Establish a daily, weekly or monthly profit targets. Once you hit and achieve this target, stop trading and take a break from the market. This will stop you from over-trading and also will stop you giving back your trading profits to the currency market. Keep your risk : reward ratio high, a 3:1 risk to reward ratio is best. This means opening transactions only when you've got the probability of making and earning 3 times what you're risking.
More Guides & Courses:
- How to Find and Get MetaTrader 4 NOK JPY Chart
- How Can You Trade US 500 Index?
- How to Set Average True Range Indicator on Gold Chart on MT4 Software Platform
- Informative Learn Trading Guide for Beginner Traders
- What are Kauffman Efficiency Ratio Buy and Sell Signal?
