3 Steps to Improving Your XAUUSD
For new beginner traders wanting to improve their education will play a fundamental role to improve their understanding of the market and this will lead to the trader becoming more successful.
After traders have learned the lessons required to start xauusd and well as the various strategies then traders need to follow these three steps below so as to improve their trading. If you have not learnt about the lessons needed to start xauusd or you are looking for a course that provides these lessons then you can find these lessons on the learn section of this web site. You can also find strategies from the learn strategies section of this web site. After you have completed reading these tutorials traders can then follow these steps to improve their trading.
Come Up with a Plan
Traders need to plan their trading & to do this, traders will have to come up with a plan. Traders looking for an example plan can find one on this website, the lesson of writing a plan can be found on the learn lessons of this website, this is the last lesson on this learn lessons section.
Use a Plan and Stick to the Plan
Traders should always use the plan they come up with to trade the online market. Strategy that a trader chooses should be well written in this plan and the trader should always follow the rules of this plan when deciding when to open and close trades.
The xauusd that a trader will be trading will also be specified within this plan, the xauusd chosen will be the xauusd that are best suited for trading based on the trader’s gold strategy.
The plan will also specify which chart timeframe that the trader will be trading with, whether the trader will use the minute charts or hourly charts. The chart timeframes used will depend on the trading style of a trader. A scalper will use the one minute charts, a day trader might use the 15 minute charts & the swing trader might use hourly charts.
The plan also will set the take profit targets for each trade as well as the stop loss for each trade. Once a trade is open then a trader will close their trade once the take profit level is reached or once the stop loss level is reached. By sticking to this method of closing trades at pre decided levels will ensure that traders will be more successful because they will have determined the points to close trades before opening the trade.
The plan will also include money management rules that the trader will follow. For example a trader should follow the money management rule that specifies that they should not risk more than 2% of their account equity on any 1 single trade. The money management rules tutorial can also be found on this web site on the learn tutorial section under the key concepts topics.
If as a trader your chosen strategy is to use automated strategies & EAs then these automated strategy should be specified in your plan. Whatever system you decide to use as a trader, write it in your plan and stick to trading with that strategy.
Traders should also avoid emotions of fear and greed when trading in the trading market. The plan will help traders plan their trades and this way traders will not make trades based on their emotions. A trading plan will help a trader set clear goals when trading ##1& at the same time will help traders to stay organized when ##1& thus ensuring the traders become more successful when trading in the market.
Trade with The Trend
Traders should always make sure that they open trades in the direction of the trend. The market trend is the general direction of the market prices and this direction can be upward or downwards. Once the market trends start to move in a particular direction price will continue to move in that direction for a while because the trends will have gained momentum that will keep pushing prices in the direction of the trend.
This is why traders should always open trades in the direction of the market trend so as to trade in the direction that has momentum and this way traders can increase their chances of being successful when trading the market.
Trader always have a saying in the market - The trend is your friend - which means that traders should always trade in the direction of trend and never open a trade against the trend. This is because the most reliable method of trading xauusd, and not just xauusd even stocks & other financial instruments is to follow the trend & only open trades in the direction of the trend.
The different techniques of determining the direction of a market trend & to do this trader should use trend lines or moving averages or Bollinger bands indicator.
Keep a Journal To Track Your Results
Traders should always keep a journal and write down all trades that they open in this journal, they should write why they opened each trade, when they closed the trade and also the amount of profit or loss generated from that trade.
After a while traders can then review the trades they have made try and look at why the losing trades made a loss & why the winning trades were successful and after that they can then try & do more of what makes them successful and less of what is making them to open losing trades & that way keep on improving on their gold strategy.
As a trader if you don't keep a journal you might continue making the same mistakes again & again without even knowing, but if you keep a journal and keep reviewing this journal from time to time then you give yourself a chance to identify the mistakes you make in trading from reviewing your trading journal.
Once a trader gains some experience in the market and start to recognizes the successful patterns from their winning trades they can then use this information to identify the setups that will have more probability of producing winning trades & this way they can then continue to improve their xauusd.
