Trade Forex Trading

Trend Following

One must come up with a xauusd strategy which they stick to when trading the online trading 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 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 results is one of the keys to becoming successful when trading the trading market. This type of trade strategy will make it easier for trader to follow the rules of their trading strategy because they already know that the trade strategy is profitable, henceforth keeping up the discipline to continue following the trade strategy will be much easier.

Successful xauusd strategies will also include:

1. Gold equity management guidelines

2.Gold Psychology Mindset

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

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

Trend Following Trading Strategies

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

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

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

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

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

When markets form trends, the market trend will have a lot of momentum & this momentum will mean that the prices will keep moving in that particular direction for a period of time that 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 that has already formed they can make a lot profit just by trading in the direction of the trend and 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 and if prices are below this moving average MA the market is bearish.

The 50 day moving average also is used for determining the medium term trend, while the 200 day moving average is used to determine the long-term trend of the trading 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 two will be use to determine 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 two line cross-over each other. This signal will be a god time to close trades if a xauusd trader has open trade transactions.

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

2.XAUUSD Psychology

XAUUSD Funds Management Tutorials

Xauusd equity management rules should be part of your strategy - the trading rules will help you to manage risk. This means that you'll use two rules of xauusd equity management - these are risk:reward ratio & drawdown reducing method when placing your trades to determine lot size that you'll open in trading 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 transaction.

To learn & know more about these 2 equity management rules, traders should study the money management tutorial that's on the learn xauusd courses section of this website under the key concepts tutorials.

Gold Psychology Mindset

In order for a trader to become successful when trading the market 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 & greed while trading the market and is a mindset of total discipline that a trader will follow all their rules & their strategy and only trade with signals that are generated by their strategy. With discipline one won't trade unless their strategy gives a trading signal. One will have the mindset of only following their system 100% all the time without second guessing the trade system. A disciplined trader also will not open trade transactions in market just because the market has started to move up-wards or down, instead a gold trader will wait for a trading 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 tutorials.

More Courses:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker