How To Make Big Profits From Trading Gold In Forex?

How To Make Big Profits From Trading Gold In Forex?

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Gold was a very gravitational metal for ages, a symbol of wealth and prestige around the world. Although the "peak" gold revolution has long since passed, the eye is still there. Since the Incas, gold has succeeded in drawing people's attention to it and they have a great desire to own it. In fact, unlike money and oil, gold is more romantic. And his possession more influential. You are certainly wondering, "How can I get it?" Between time and time.

It's very simple! Gold can be traded in several ways. One of these ways is to own gold in the form of gold coins and alloys and invest them. Investment in gold mining companies can also be invested through the purchase of shares. There are many new gold and silver mining companies that represent very good investment opportunities.

The Forex market is another way to trade gold. Gold trading may be a golden opportunity you should not miss. Gold trading in Forex is very similar to currency trading. At the same time, this type of trading has, of course, its own advantages. If you plan to trade gold in the Forex market, as many traders do, you have diversified your arsenal of trading and working tools. Gold trading has very high spreads and a low leverage set by gold traders. In addition, by analyzing gold trading and XAU / USD pair changes in charts, you can find a number of important market bonds. Which helps you to understand the largest circulation in the currency market.

One of the advantages of gold investing is diversification of the financial portfolio and thus reducing the risk of large losses, especially when the economic climate is very volatile. In other words, when your financial portfolio is diversified and composed of a number of different assets, even if you lose in stocks and bonds, you will profit from the price of gold that rises when the economy is hit by shocks and crises. One of the disadvantages of trading gold is that its prices are affected by speculation in daily trading, which makes it highly volatile.

Gold is a fundamental economic indicator, where changes in prices help explain the investment situation of the United States and the global economy. The rise in gold prices usually indicates that the US economy is suffering. Factors contributing to the rise in gold prices are the devaluation of the dollar, rising inflation, and low long-term interest rates. Those interested in gold investment must understand the relationship between the price of gold and the Forex market.

One of the best examples of high gold prices is the recent US election and a vote on Britain's withdrawal from the European Union, with gold rising to a 21-month high of 3.1%. The US presidential election was accompanied by large fluctuations in the markets, so trading was then excellent for speculators. The trader should be willing to spend long hours in front of his computer looking for spot Forex charts while keeping an eye on the news at the same time.

Here is the following advice. If you want to trade gold in Forex, it is best to wait for the candlestick to close before entering or leaving the trade. Especially when the transaction is entered into. If you watch the last minutes of the candlestick, whether it is a 30-minute candlestick, a candlestick, or a candlestick of 4 hours, you will notice that the price of gold may change rapidly taking the opposite direction. Do not bet on the movement of gold over a certain period of time, because the results may be quite sudden.

As with any other trading instrument, there is no "optimal" way to trade gold. Many traders in other markets noted that the technical trading strategies applied to other investment instruments are easily applicable to the gold market, especially because of the tendency of gold to form a strong trend.

For traders in the short term, the best way to profit from gold tranches is to cross the moving averages strategy. In this strategy, the trader seeks to buy gold if he crosses a short-term moving average with a long-term moving average and sells it if the same goes down. While long-term investors and traders can focus more on the fundamentals that drive the price of gold such as the level of real interest rates.

When you're ready to trade the gold, you have to be careful. Do not underestimate the fact that gold is very volatile and fluctuates in both directions on a large scale. Pay attention to what is happening in the world, because it affects gold prices quickly. Gold can be used by linking it to a volatile currency or trading electronically because of its high flexibility. Or in jewelry making and retention. Unlike commodities, it is hard to predict what will affect it, so be prepared for a quick reaction. At the same time, do not forget that experts consider gold one of the best investment tools of the year.