Counter Trend
One must develop a strategy which they stick to when trading the online xauusd market. One must have the discipline to stick to the trading strategy at all times. That is why it's better to come up with trade strategies that are simple - profitable systems will be a lot easier to follow & stick to. This is because one knows that by following the rules of their system they will be successful.
A carefully designed strategy that has been back tested & proven to produce profitable trading results is one of the keys to becoming successful when trading the market. This type of strategy will make it easier for the trader to follow the guidelines of their strategy because they already know that the trading strategy is profitable, henceforth keeping up the discipline to continue following the trade strategy will be much easier.
Successful xauusd strategies also will include:
1. XAUUSD equity management guide-lines
2.XAUUSD Psychology Mindset
The two will greatly improve the success of any system.
However, Let us look at price action method before narrating on money management & xauusd psychology.
Counter Trend Trading Strategies
Counter trend strategies are best used to place trades on major resistance and support areas where gold price is likely to reverse. These are the support & resistance zones where price has not broken before.
However, this strategy is not the most reliable method because trying to catch the market top or the market bottom is not the best strategy as the trend may continue to move in the original direction of the trend for quite some time.
This strategy should therefore only be used to trade that rarely trend. Traders can draw support & resistance zones of the price range and they'll then use these levels to open trades - traders will open buy trades at the support zone and traders will open sell trades at the resistance zone. For a range bound market the trading prices will keep bouncing off these points & the traders will open trade transactions and keep trading these market price bounces.
XAUUSD Strategies Tips
Once a trader has develop their trading strategy, they should also try to include the following so as to make their strategy more successful.
1.Gold Money Management Guides
2.Gold Psychology
XAUUSD Equity Management Guidelines
Xauusd money management guidelines should be part of your strategy - the trading rules will help you as the trader to manage risk. This means that you will use two rules of xauusd money management - these are risk:reward ratio & drawdown reducing method when placing your trades to determine lot size that you will open in the market. The most popular equity management rule use in xauusd and the one that you should also add to your plan is the rule which says a gold trader should never risk more than 2% of account balance on any one single trade.
To learn and know more about these two xauusd money management guidelines, traders should read the money management guide that's on the learn tutorials section of this web site under the key concepts courses.
Gold Psychology Mindset
In order for a trader to become successful when trading the market one has to learn about psychology. The psychology or mindset which is needed to become successful in xauusd is one that avoids the emotions of fear and greed while trading the market & is a mindset of total discipline that one will follow all their rules & their strategy and only trade with signals which are generated by their strategy. With discipline one will not trade unless their trading strategy gives a signal. One will have the mindset of only following their system 100% all the time without second guessing the trade system. A disciplined trader will also not open trades in market just because the market has started to move up or down-ward, instead a xauusd trader will wait for a signal to be generated by their trading strategy.
In order to know more about psychology and how to manage emotions while trading the online market a trader can read the psychology guides from the learn tutorials section of this web site under the key concepts tutorials.
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