Counter Trend
A trader must come up with a xauusd strategy which they stick to when trading the online xauusd market. A trader must have the discipline to follow the rules of their xauusd strategy at all times. That is why it is better to come up with trade strategies that are profitable - profitable xauusd systems will be a lot easier to follow and stick to. This is because a trader knows that by following the rules of their xauusd system they will be successful.
A carefully designed strategy that has been back tested & proven to produce profitable trading results is one of the keys to becoming successful when trading the xauusd market. This type of strategy will make it easier for the trader to follow the rules of their xauusd strategy because they already know that the strategy is profitable, therefore maintaining the discipline to continue following the xauusd system will be much easier.
Successful xauusd strategies will also include:
1. XAUUSD money management rules
2.XAUUSD Psychology Mindset
These 2 will greatly improve the success of any xauusd system.
However, Let us look at gold price action strategy before explaining more about xauusd money management and xauusd psychology.
Counter XAUUSD Trend Strategies
Counter xauusd trend strategies are best used to place trades on major resistance and support areas where gold trading price is likely to reverse. These are the support and resistance levels where gold price has not broken before.
However, this strategy is not the most reliable xauusd method because trying to catch the xauusd market top or the xauusd market bottom is not the best strategy as the xauusd trend may continue to move in the original direction of the trend for quite some time.
This strategy should therefore only be used to trade xauusd trading that rarely gold trend. Traders can draw support and resistance levels of the gold trading price range and they will then use these levels to open trades - traders will open buy gold trades at the support level and traders will open sell gold trades at the resistance level. For a range bound market the gold trading prices will keep bouncing off these points and the traders will open trades and keep trading these gold trading price bounces.
XAUUSD Strategies Tips
Once a trader has come up with their xauusd strategy, they should also include the following so as to make their xauusd strategy more successful.
1.Gold Money Management Tutorials
2.XAUUSD Psychology
XAUUSD Money Management Guidelines
Xauusd money management rules should be part of your xauusd strategy - these rules will help you as a trader to manage risk. This means that you will use two rules of xauusd money management - these are risk:reward ratio & drawdown reducing method when placing your gold trades to determine lot size that you will open in the xauusd market. The most popular xauusd money management rule use in xauusd and the one that you should also add to your trading plan is the rule which says a trader should never risk more than 2% of account balance on any one single gold trade.
To learn and know more about these two xauusd money management rules, traders should read the xauusd money management tutorial that's on the learn xauusd tutorials section of this website under the xauusd key concepts lessons.
Gold Psychology Mindset
In order to become successful when trading the xauusd market a trader has to learn about xauusd psychology. The xauusd psychology or mindset that's required to become successful in xauusd is one that avoids the emotions of fear and greed while trading the xauusd market & is a mindset of total discipline that a trader will follow all their trading rules & their xauusd strategy and only trade with trading signals which are generated by their xauusd strategy. With discipline a trader will not trade unless their xauusd strategy gives a trading signal. A trader will have the mindset of only following their xauusd system 100% all the time without second guessing the xauusd system. A disciplined trader will also not place trades in xauusd market just because the xauusd market has started to move up or downward, instead a trader will wait for a signal to trade to be generated by their gold trading strategy.
In order to learn more about xauusd psychology and how to manage emotions while trading the online xauusd market a trader can read the xauusd psychology guides from the learn xauusd tutorials section of this website under the xauusd key concepts lessons.
