There was a time when you actually had to sell and buy the metal itself. Things changed and then it came down to futures and options and the traders now can spread their bets accordingly. Hence, trading in gold today is no different than trading in any forex or stock market. People are lured towards trading in gold as they believe they are trading in a metal rather than a company whose future depends on the results that it produces every quarter. Today, https://cfdeksperten.no/ has more clients in commodity than forex or equity markets. The amount of return that gold has given over the years is unparalleled to any other market and making it a viable choice for the traders.
Gold Trading Secrets
We will reveal some of the secrets and patterns that work in gold trading. There is a correlation between global indicators and other markets with the gold. Lower the dollar index, lower the gold prices and higher the dollar index, higher the gold prices. In addition to that, there are some specific months in which the gold behaves in a certain pattern and professional traders are aware of those. Since the inception of Copy Trading, many small and relatively lesser known traders have started copying the experts. This way traders have made huge profits and is certainly the best way to approach gold.
Gold Price Pattern
As per its seasonal cycle, the gold prices mostly go up in the 1st quarter of the year. Post that September is one month in which gold prices go up more often than not and you can have long futures in that month. However, we have to also take into consideration that this is a general indicator and you should look at other parameters as well. Having said that, following the seasonal cycle is never a bad option. In addition to that, we have mentioned some steps that a trader should follow while trading in Gold.
Buy at support levels or if it starts trading above resistance levels
Do remember, if you trade with this strategy, you have to be flexible. If at the time of your analysis, it is trading at support level, you can buy it with a stop-loss of the next support level. Likewise, if it is trading comfortably above its resistance level, there’s no harm in chasing gold even if the prices are higher.
Place Stop Loss
No matter what, you should never trade without stop-losses. If gold breaks or rises above a certain level, then they can test any levels and holding the positions in such cases can be a risky thing. Hence, never place your trade before analysing your stop-loss. Not just stop-loss, you should also have a fixed target in mind, you should also book profits as soon as the target price is achieved.
Conclusion
Gold is considered a safe haven and therefore taking short trades for a long time is not an ideal thing. The trading game is all about technical analysis and the levels. Also buying gold will help you diversify your portfolio and therefore money earned through trading can be used for physical investments in gold. Also, watch the news and see the central banks movement. If they buy the prices tend to go up and likewise, if they sell, the prices will fall. At the end of the day, it’s a demand and supply game. Thus, you should always consider the demand and supply market for gold before taking trades in volume. Not just long but in gold futures, you can also short and make profits.
