Trade Forex Trading

Trend Following

A trader must come up with a xauusd strategy that they stick to when trading the online trading market. A trader must have the discipline required to stick to the strategy at all times. That is why it's better to come up with strategies that are simple - profitable trading systems will be a lot easier to follow and stick to. This is because one knows that by following the trade rules of their strategy they will be successful.

A carefully designed strategy that has been back tested & proven to produce profitable results is one of the keys to becoming successful when trading the trading market. This type of strategy will make it easier for trader to follow the trading rules of their trading system because they already know that the trade strategy is profitable, henceforth keeping up the discipline needed to continue following the trade strategy will be much easier.

Successful xauusd strategies will also include:

1. XAUUSD equity management guidelines

2.Gold Psychology Mindset

These 2 will greatly improve the success of any xauusd system.

However, Let us look at price action method before narrating on xauusd money management guidelines & principles & xauusd psychology.

Trend Following Strategies

Trend following strategies are depending on first figuring out the overall trend, whether the market is moving upwards or it's heading downwards. After determining/figuring out the price trend the trader will then only open trade positions in one direction.

Upwards trend - in an upwards trend prices keep heading up, and here the trader will keep opening buy trades.

Downwards trend - in a downward trend prices keep moving down, and here the online trader will keep opening sell trades.

There are different strategies of determining the market trends & the two most popular ones are:

Trend lines - traders will draw trendline on the price chart to identify the current general market movement. Once the market trend direction is determine a gold trader will then open trades once the price touches the trendline or when price is close to the trendline. The trader will only open trade positions in the direction of the trend.

When markets form trends, the market trend will have a lot of power & this force will mean that the prices will keep moving in that particular direction for a time period which lasts for quite a while.

Trading the market trend is one of the most lucrative way to trade the market if a gold trader catches a price trend which has already formed they can earn a lot profit by just trading in the market direction of the trend & the longer the trend stays the longer a xauusd trader can continue to earn profits. Some major trend may last for years and these can prove to be the most lucrative setups especially when they last for years.

Moving Averages Strategies - Another trend identification strategy is the use of the 20 day MA, and when prices are above this moving average MA the market is bullish & if prices are below this moving average MA the market is bearish.

The 50 day moving average also is used for determining/figuring out the medium-term trend, while the 200 day moving average is used to identify the long-term trend of the market.

Traders also can use two MAs to form the moving average MA crossover trading technique, this method will have a shorter period moving average and a longer-term moving average MA & these 2 will be use to identify ruling market trend. For examples a trader can use the 5 day & 7 day MAs, and for this strategy the trend is upward if both these moving averages are moving in the upwards direction and the trend will be down if both these 2 moving averages are moving downward.

This system will indicate the trend is about to change one these 2 line cross-over each other. This market signal will be a good time to close out trade positions if a gold trader has open trade positions.

XAUUSD Strategies Tips

Once a trader has develop their trading strategy, they should also try to include the following to make their trading strategy more successful.

1.Gold Equity Management Tutorials and Lessons

2. XAUUSDXAU/USD Psychology

XAU/USD Funds Management Tutorials and Lessons

Xauusd equity management rules/guidelines should be part of your strategy - the rules will help you to manage risk. This means that you will use two rules of xauusd equity management - these are risk : reward ratio & drawdown reducing method when placing your trade positions to identify lot size that you will open in trading market. The most popular equity management rule use in gold & 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 & know more about these 2 equity management rules, traders should study the money management course that is on the learn xauusd courses section of this website under the key concepts courses.

Gold Psychology Mindset

In order for a trader to become successful when trading the markets a trader has to learn about xauusd psychology. The psychology or mindset that's needed to become successful in xauusd is one that avoids the emotions of fear and greed while trading the market and is a mindset of total discipline that a trader will follow all their rules and their strategy and only trade with signals that are generated by their strategy. With discipline one will not trade unless their strategy gives a trading signal. A trader will have the mindset of only following their strategy 100% all the time without second guessing the trade system. A disciplined trader also won't open trade positions in market just because the market has started to move up or down, instead a gold trader will wait for a signal to trade to be generated by their trading strategy.

In order to know more about xauusd psychology and how to manage emotions while trading the online market a trader can read the psychology guides from the learn xauusd courses section of this website under the key concepts courses.

More Courses:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker