Types of XAU USD Traders

XAUUSD traders vary by hold time on open trades. Lot sizes also shape each trader type.

The most frequent trading types are:

Scalpers
Day Traders
Swing Traders
Position Traders

Scalpers

Traders will open and hold their trade positions transactions for a period of only a couple of minutes and profit from just a few pip(point) movement in one of the more well-liked ways to trade gold. The one-minute charts will be used by traders to determine the present market trend and initiate trades. Between 200 and 300 points will be the target profit for each trade position for scalpers. As a result, this profit goal represents a $2 to $3 shift in the gold price since every 100 points is equivalent to a $1 change in the gold price.

Day Traders

These traders open and close positions in one day. They avoid overnight holds. Day traders check 5-minute or 15-minute charts for trend direction. They enter trades based on that. Positions last a few hours to catch intraday moves for profit.

Day traders usually try to earn between 700 and 900 points per trade. Since 100 points equals a $1 change in the xauusd price, this goal means a $7 to $9 change in price.

Swing traders

These traders initiate positions and maintain them for several days, seeking to capitalize on intra-week market fluctuations that typically last two to three days. Occasionally, these traders allow their open positions to remain overnight to capture potentially larger profits derived from the intra-week trend.

These traders check 1-hour forex charts for trends. They place deals on that timeframe.

Swing traders will try to get somewhere between 2000 and 5000 points of profit for each trade they make. Because 100 points equals a $1 change in the xauusd price, their goal is a price change of $20 to $50.

Position Traders

These traders hold their positions for weeks or even months, aiming to profit from medium- and long-term moves in gold prices.

Position traders will use the Daily & Weekly charts to figure out the price trend and place trades using these daily and weekly charts. Position traders will trade with the goal to earn a profit of between 20000 and 40000 points per trade position. 100 points is equal to $1 dollar change in the xauusd price, henceforth this profit target is a $200 to $400 dollars change in price.

About Day Trading Method

The most common way to trade xauusd is the intraday trading method: most traders like to day trade gold and open and close their trades within the same day. These traders will only keep their trades open for a few hours. This way, a trader will try to make profits of between 700 and 900 points, which is the average daily change in gold prices. Also, a gold trader can close their trades quickly if the price trend goes against what they thought.

A change of 100 points is the same as a one dollar change in the price of xauusd per ounce. As an example, if gold goes from $1250 to $1251, this means gold prices moved 100 points.

Day Trade Example

The sample shown here displays a 15 minute chart that's good for short-term trading. The short-term trader will use this 15 Minute trading chart to start orders. The direction here is rising so a gold trader would have begun a buy order. If the trader bought 1 gold contract at the price of $1210 per ounce and ended the order at $1242 dollars per ounce, this would be a $32 difference in the price per gold ounce which is equivalent to a 3200 points difference: this happens because the gold price is shown using 2 numbers after the dot.

Scalpers, Day Traders and Swing Traders

Each point in XAUUSD yields $1 profit. This trade brings in $3,200 total.

Day traders focus on the 15-minute chart, maintaining their open trades for as long as the trend aligns with their trading direction. As soon as the trend shifts on the 15-minute chart, traders will close all open positions and await another trading opportunity before entering new trades.

In the situation described, a seller would end their purchase when the price hits $1242 because this is the point where the market's path shifted, as shown by the two moving averages that have switched directions and are both now heading downwards.

The trend here comes from the 15-minute XAUUSD chart. This trade opened and ran just 10 hours. The gold trader closed it then and waited for the next setup.

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