Friday, 20 March 2015

Tips to Develop Your Gold Trading Strategy

There are a few things you should consider when pal Trading Gold Trading compose the system:1. Find the entry point as early as possible2. Find the exit points to secure the maximum benefit with3. Avoid spurious signals as they enter and exit the market

If these three things can be done, the trading opportunities that you stacking system will succeed. The steps in setting up a trading system that is:
Step 1Determine Time Frame For Your Gold Trading
It is the first step in setting up the trading system, this step can only be your own answer because it depends on the time you can dedicate to trading, if you have plenty of time to sit in front of a computer? if yes you can use a chart with such a short time frame 5 minutes, 15 minutes or 30 minutes, or you feel comfortable watching the chart two or three times a day can use the time frame for 1 hour or 4 Hours. Please ask your inner how loose each time you have to trade.

Step 2Determining Indicator That Will use
For now almost all trading platform already provides lots of indicators not to mention custom indicator that you can find on the Internet, although not all indicators provide rapid signal to follow the movement of prices, while at the outset to note that the earliest possible entry position.
As a reference several indicators that provide faster signal about the changes taking place in the market as well as the opportunity to get in position, among others, EMA (Exponential Moving Average), SMA (Simple Moving Average), Parabollic SAR, MACD etc. That must be considered is to understand the basic workings proficiency level indicator.
For example, one of the indicators to determine a reversal is to use the intersection of two EMA EMA for example 5 to 25 EMA. Or for example, using the intersection of the stochastic oscillator with the MACD, the way it works is very simple: wait two indicators intersect each other.
But when using a variation of this indicator, it is advisable not to use too many indicators because if too much will make you confuse yourself and need more time all the indicators give the same signal. And one thing that must be understood that this indicator not only as a tool to ensure the tool where prices will move once more that we can do is analyze and analysis can also be completely wrong.

Step 3Determine Currency Pair and Determining The Crowded Market Hours
Etc. Each currency pair has its own character itself, some can be very volatile as GBP / USD or GBP / JPY some very not so volatile as the EUR / GBP.
Setting indicators used for each of each pair can also give different results such as setting an example of 5 EMA and 25 EMA if used for the currency pair GBP / USD the result could be different if used in the currency pair EUR / GBP. While To XAU / USD own me more comfortable in 20ema and 50EMA
In addition, we also need to know at what time the pair have experienced a great movement, as per each pair of clock movements clock can be different, for example, we are trading the USD / JPY will move mornings ago GBP / USD will start moving during the day, so for example you are trading the GBP / USD then you do not need a computer in front of the morning because it usually will not be a big movement and will often give the wrong signal.

Step 4Determining Entry and Exit Point
The next step after determining the indicators that will be used that make the transaction when it is time entry rules and when to exit.
To determine the exit points, there are two ways you can do is determine the exit points with the same number of pips every transaksinnya for example when an indicator to signal the entry then we've set an exit pointnya by 25 or 50 pips or use a trailing stop.
In addition to determining the exit can also follow the signals given by the indicator, if based on a given signal, the indicator of the profit or loss that we can get is different.

Step 5Calculating Risk Every Transaction
The main thing that must be considered to calculate the risk is to determine the risk and reward ratio is right, many of which suggest enter positions when the profit to be gained at least two times of the possibility of loss that may occur or the risk-reward ratio of 1: 2. The point is not to when you loss removes the advantage that you have previously obtained.

Step 7Test Your Gold Trading System With Demo Account
After going through the above steps and through research, it is time to see if the trading system which we have collated successfully and can be used in a real account. Before entering into a real account first test on a demo account. Record in a journal of all the transactions in a demo account. When using a demo account with a capital adjusted capital would later use in a real account.
If the gold trading system tested in a demo account gives great results. Maybe it's time you trade with a real account. Although later some things to consider when your trading system is applied in a real account because it could give different results, it is associated with psychological or mental you.

1 comment:

  1. The trading strategies are a list of basic trading terminology to introduce you to different instruments, tools and strategies for different markets.