Trading Gold is a "Goldmine"

After a long search i could not find a thread dedicated to discussing gold exclusively. I’m starting this thread to, hopefully, get more people interested in trading gold. Here are some reasons - gold is generally volatile, that will give you more chances of entry; it tends to have long runs, that will give you pips; it is easier to analyze - know the price of oil and the state of US economy, as opposed to 2 economies of each trading currency pair. Combined with a right trading and money management strategy and an immense intestinal fortitude, also known as “Balls”, you cant lose as much as you’d win. With every new post i will elaborate on each of this points and add some more things to “ponder”.

Today from 6.00 GMT till 13:45 GMT - overall price movements (up and down) was just over 460. on a minimum lot 0.1 and 1:100 lev, that would equal 50 cents a pip, giving us around 230$. Now, thats a perfect scenario…playing with only one position each way. Say you stuffed it half a time - get 230 pips instead. Problem is do you have balls for a ride like that? if not, then DONT TRADE GOLD. It can move against you so quick you will **** yourself. While
writing the first paragraph my position went down to -65$, now its 37$ profit, and its been tops 5-6 minutes. If you can take that kind of punishment, keep a track of this thread, as i will discuss how to ride the GOLD WAVE :slight_smile:

Anyhow. my position now is - 14.50$, by the time my wife kills me cause i’m not going to bed it will be around +60.

Got any ideas or your strategies to trade gold, let me know. I will tell you my strategy in 2 days.

Good night.

Gold (commodity futures on precious metals) is a fascinating market, without a doubt, and one which can have a substantial impact on national currencies in a variety of ways. The applications to Forex are many, with gold’s interplay with AUD and NZD prominent among them. If this thread is approached from that angle (how gold futures affect currencies), it sounds like a great addition; but this is a forum devoted exclusively to learning to trade Forex, not somewhere with the dedicated space required to teach others about how (a necessary prerequisite) to trade futures, let alone speculate on gold.

Yep, since i’m new on this forum, i didnt really know where to post this thread.
I thought that newbie island would be good since a lot of new traders want to learn the fast and effective way of trading. this is definetly one of them, because gains are quicker to achieve. for a newbie to see a 50$ gain on 300$ account is the best motivation ever.

Regardless, what forum would you suggest i move this thread to? thanks for help.

Ok, just to let you know, my position closed at 68 US$ profit, when i wnt to sleep yeserday. I guess thats my payment for a post. now, the more i post the more i’ll earn, considering it takes only 10-15 minutes. not bad.

Ok, lets get to it.

So newbies get ready, find yourselves a broker that will let you trade spot gold against US, alternatively if you dont wish to put your cash on the line, use metatrader to train. Although I’d advise against it. If you cant FEEL your money, if you cant feel the loss, cant feel the profit, it will be hard for you to trade live account. Just consider that 500$ for your trading experience is a small amount to pay. You can learn to control your emotions ONLY when you use live account.

Thats where 90% of failures happen. One of my acquaintances earned shiploads of cash on a demo account, as soon as he switched to a live account he blew it all away in 3 weeks; big account too. Hmmmm… not good. Dont make that mistake. Be a Vulcan and say NO to fear and greed.
Thats why i suggest you practice on a 250-500$ account, obviously using a minimum lot each trade. max 6 trades with around of 25$ margin will get you a long way in a short time.

Now that was a preface, lets get to business!

That’s the thing, you dont trade futures, plenty of brokers provide spot trading for gold and silver, you can view it in an exactly the same way, in my opinion. I guess if someone is quick enough he can place additional trades on commdollars, but reward to risk is not as high. A successful week of gold spot trading can easily double your whole account. Risks are minimum - returns are maximum, same as binary trading (but thats a whole new topic).

I reckon, if your broker lets you trade gold, DO IT WItHout thinking twice. Only think when you’re trading. :slight_smile: hehehe

Note for newbies : Oanda lets you trade gold on a live account, plus to minimize risk you can buy lots so tiny, your cup of coffee costs more.

I don’t mean to rain on your gold parade, but you can earn more money because you are risking more. The volatility works both ways good sir.

Actually i dont risk that much at all, again its all about how much cash you’ve got and your confidence in your trading system.
I usually go with around 25$ margin with a smallest contract, just to test the water (now i can go as low as 12.50 for a 5 XAU), my second contract, usaully the biggest one, takes aroung 100$ margin, third one is a 50$, fourth one is a 25$. If your first 2 contracts are proven to go your way, you actually decrease your risk as your profit grows - thats quite simple to understand. In the end of the run your 1st contract performs around a 1:4 risk ratio… hold on… yeppe around a 300pip gain in an hour on a combined conracts for 1.5 lots. not bad. risky? not after your 2 anchor contracts pull you in a correct direction. risk is relative to a current situation, not to how much you put as a margin… sorry i will finish later, gotta ride the down trend. Bye!

What’s your strategy for getting out of a losing position? How long have you been trading?

Thanks for pointing out what it is you are trading. Futures or spot - whatever the exact instrument, it is not spot foreign exchange, which is all that is discussed here. You’ll notice the sub-title under the babypips.com logo at the top of this page. Perhaps you can carry whatever insights you have over into a discussion that is Forex-related. If not, the topic is better suited to other forums that support discussion of different markets and the products available for trade in them…

If you cant FEEL your money, if you cant feel the loss, cant feel the profit, it will be hard for you to trade live account. Just consider that 500$ for your trading experience is a small amount to pay. You can learn to control your emotions ONLY when you use live account.

id have to some what agree with this … for those interested there is live accounts you can apon that trade in cents rather than dollars, min deposit $1, not sure how applicable this is to gold though…

i started one with $20 and it has access to gold and things other than pairs.

not that ive tried them yet, it may have only been 20c but my first closing my first win was something the be remembered …

i looked at some gold charts after reading this and it is inspiring seeing some of the moves it makes, but id also agree with anthers comments on relativity to risk… but i figure if uve got enough margin and you dont over invest you can reduce this, and i may give it a go some time…

thanks.

G’day, fellas. Talking about risk. Dont get hooked on to the thing that most people say on this forums, risk on your positions is determined by your ability to “pre-see” the market movement, not how much your account holds. I would make a usual trade without any stop-loss, first of all it is counterproductive - SL will take you out too early (especially with gold). Best risk management is - if you cant afford to lose the whole margin on your position, dont even think about opening it. Thats to answer akeakamai. Thats how i control losing positions: i would not open consecutive contracts in the same direction. If the market doesnt turn back before taking out my whole margin on a first contract, i would let 2 “anchor” contracts run. If my first contract is closed by an insufficient margin, i will manually close my second contract. Most of the times i was dead wrong with the market direction, losses incurred were only on the first contract - gold market actually very good at taking out wrong positions, since it’s so fast. That is not a bad thing at all, cause thats the whole point of the first 0.1 contract to MINIMISE your risk for the rest of 0.9 . You can put quarter of your bank if you wish (not advisable though) after your 2 anchor contracts are in around 50 pip profit and market dynamics are supporting the further move, and your risk WILL be minimal to the risk of opening such a big position of of the blue. (by the way a 50 pip move in one direction with Gold is really nothing). Example: Yesterday got a good move up over 400 pips, i caught around 300 on 0.1 , 260 on 0.8, 200 on 0.3, 150 on 0.2, and 90 on 0.1. thats what a combined 1000 pips in 1.5 hours?

what kind of currency pair can produce such runs? I dont know… Beauty of trading gold is that its runs are long (and prosperous).

If you wish, keep trading for 300-500 pips (judging by this forum thats quite an achievement) a week on currencies, to get same rewards though you would have to use a lot of pairs & margins (at higher risk).

Ok, i guess you’re right. I will post my strategy when i’m free in the Holy Grail segment of this forum, and everyone can try it out with currencies. The matter of fact is it will give you profits quicker with gold, but with it you can trade everything from forex, to shares, to hogs and pigfeet.