Account Management

Process below describes the process of formulating xauusd money management & practical advices on formulating your own equity management system in Gold - account management.

1. Keep the Necessary reserve (over & above the broker margin requirement)

This reserve is needed for unusual situations & it should be not less than 50 % of invested equity. It is the first rule of account management in margin definition for opening trade orders. However, many experts and analysts advice more reserve of about 70 % - 90 % of invested account capital for safe operation in xauusd.

2. Do-not to invest more than 2% - 6%

This is one of principle that helps to avoid bankruptcy: never invest more that 2% on one market & do not to invest more than 6% in the overall total open trades.

3. Never risk a loss of more than 2 % of invested money on any one single trade

This isn't the same as above, the above is never invest more than 5%, this is never to lose more than 2 % on one trade. In this case a xauusd trader risks only to lose a small part of their equity with an unprofitable trade position.

4. Diversify

The use of optimal investment of your funds is that you should diversify to some degree. Just In case one trade losses, the trade order can be covered by the profits of another trade position.

5. XAUUSD money management rules should be well written down

On a piece of paper or better still in your trading plan. If you open trade orders then the orders should be within your xauusd money management guide-lines.

6. Define your stop loss and take profit order levels

When you're trading put your stop loss orders so as to avoid any huge losses. Profit taking levels will ensure you get additional profit by taking money out of the trading market. Analyze the situation and predict the future movement direction of the price action & place orders accordingly. You can even use indicators & volatility of the to know where to place these orders.

7. Define of the possible loss or profit before executing a trade

Consider only opening trade positions when you have got the chance to get profit against loss ratio of 3:1. If you as a trader can not do it then don't open the trade order.

Xauusd money management should seek to bring maximum profit to the online traders account, keeping profitable trade position orders as long as possible is a good strategy. Hence, if you make some profitable trade orders you as a trader can have goods trading results.

8. Try to follow the trade rules of opening & closing the trade orders specified on your plan.

That way you'll get consistent results required for earning profits in the trading market.

9. Do not revenge against the trading market

In this case, you will not be analyzing the situation but you'll just be based on emotions and you'll lose more money.

10. Timely rest

Do not trade when you are exhausted, no matter how tempting the situation may seem, you might not get the profits which you as a trader can if you were to trade based on your trading schedule.

Considering these - Account Management Rules & Guidelines can make you trade profitably. Try to develop your own equity management strategy that gives you good trading profits.

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