XAUUSD Demo Account - XAUUSD Practice XAUUSD Trading
For any trader wanting to start trading gold online, the best way to start is by using a demo demo account. This way a trader will learn about how to open & close XAUUSD trades, how to open Gold charts and place technical indicators on the xauusd charts and also get to know about the leverage & margin used to trade gold & how to use money management so that to manage trading with leverage.
The first thing a gold trader should learn from their demo trade account is how to determine the direction of the gold prices so that they can know which side of the trade to take.
There are two market directions up or down - when prices are moving upwards a trader will buy xauusd and when they're heading down a gold trader will sell gold. The example below shows you how to determine an upward market direction and a downward market direction.
How To Open Buy Trade
A trader will determine when to open a buy trade by using the gold price chart & placing indicators on this gold chart. Indicators are tools that calculate the market direction and the momentum of this market direction.
For example the trade below is a buy trade - we shall explain how you can determine this for yourself when trading.
The first thing which can be interpreted from this chart is that the direction of the prices upwards. As a trader you also need to use a few indicators so as to get more information about this upward trend.
The two indicators placed on this chart are the moving averages and RSI.
The two moving averages form a trading system that is referred to as the moving average MA cross over trading method. A signal is generated once the two moving averages crossover each other and both start to move in the same direction. There is a shorter period moving average and a longer period moving average MA such as the 5 day MA & seven day moving average that has been used above.
- When both moving averages are moving upwards the market trend direction is upward
- When both moving averages are moving downward the market trend direction is downwards
The second indicator is the RSI; RSI indicator is used by traders to confirm the market direction. When RSI above the 50 center mark as illustrated above it means prices a generally closing higher than where they open.
In the above example because RSI is above 50 center mark then the upwards trend is confirmed by the RSI. As long as the RSI is above 50 it means prices of xauusd will continue heading upwards.
A trader will use these two trading indicators to create trading rules for opening a trade position. These trading rules will form what is known as a tradingtrade system.
The trading rules are:Buy when both moving averages are moving upward and RSI is above the 50 center mark as illustrated above.
How To Open Sell Trade
To open a sell trade like in the example below:
A trader would open a sell trade once both moving averages are moving downward and RSI is below 50 center mark.When RSI is below 50 it means prices are closing lower than where they open & therefore the gold price trend is downward.
Once a trader knows how to determine which trade to place using the xauusd trading charts the next thing to learn is how to open a gold chart on the xauusd trading platform and how to open a new transaction.
Opening a Gold Trading Chart
A trader can open a new trading chart from the file menu on their trading platform as illustrated below.
Placing Technical Indicators on a Trading Chart
A trader can also place chart technical indicators from the navigator menu on the trading platform. To go to the navigator menu that is shown below a trader can click the view menu on the top left corner of the trading platform next to the file menu & choose navigator - shortcut key-board keys are pressing CTRL+N to show this navigator window.
A trader will also use this demo trading account to learn about the gold trading platform as shown below.
A trader can use the demo trade account to learn how to navigate the above platform and how to check their account balance as illustrated above.
This demo trading account will provide traders with a good method of learning about xauusd trading and the different tools used when trading gold. Traders can practice trading with this trading account without depositing money: the money used in this account is virtual. Traders can learn and practice trading with this account until such a time when they get enough knowledge to help them to start trading gold profitably & then after that they can open a live gold trading account and start trading with real cash.
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