Precision metal trading is gaining popularity among retail traders. Brokers usually give tight leverage to the precious metal traders but they are now offering decent leverage. The ability to buy a huge amount of precious metal gives you the power to boost the profit you make in trading. However, many UK traders are still losing money in gold trading. If you follow the tips in this article, you can become good at trading gold in less than a month.
Give priority to the trend
You might make money against the trend in the currency market but to trade in gold, you must trade with the trend.
To find the existing trend of the gold market, you can rely on 55 EMA or the 100 EMA. Both of these EMA provide excellent support and resistance to the gold trader. However, you can also use the trend line tool to discover the direction of the trend. Upon successful identification of the trend, you could make a profit. No matter how convincing the trade setup is, stop chasing trades that are not in favor of the trend.
Trade with the best broker
One of the main reasons to lose money in gold trading is a faulty trading environment. You have to find brokers like Saxo Bank who have a proven track record in offering financial services. Without choosing a good broker, it will be a tough call to make the right decision at trading.
Elite traders know the price of gold is sensitive and a faulty price feed can result in a major loss for retail traders. Explore the features of the professional broker and you will never choose a low-end broker again.
Use a dynamic trading strategy
People are who are trading with rigid trading methods are always losing money at gold trading. Without being sync to this market, it will be very hard to improve your skills as a trader.
Try to create a dynamic trading method that will help you to trade at different conditions. Stop being an aggressive trader because you don’t know how to deal with the complicated nature of the market. Don’t follow gut feelings and trade with discipline. Have faith in your trading system so that you can withstand losses.
Stop using high leverage
New traders often take the maximum possible leverage to trade in the precious metal. They think leverage is going to make them rich. It’s true, if you can use the leverage in an effective way, you can make a substantial profit but this is not how the elite gold traders execute the trade.
Elite traders analyze technical and news data, and trade with a low leverage account. To them, the protection of their trading capital is the priority. Risking anything more than 2% in the gold market is more like placing dollar bills in the line of fire. It’s better to earn less rather than experiencing intense pressure at trading. Keep your trading environment relaxed by reducing the risk exposure. This can be done by decreasing the leverage of your trading account.
