Most forex brokers offer at least two commodities to their traders, gold and silver. Gold has been the commodity which enjoyed the biggest increase in popularity and more and more forex traders try to diversify their MT4 portfolios by adding gold and silver into their mix.
I have been trading gold for several years as part of my commodity portfolio and since more and more new traders jump on the gold band wagon I wanted to share one piece of advice: A forex strategy may not be suitable for commodity trading. There is a lot of new traders who think that all they need to do is apply their forex strategy to commodities, but in many cases at least some adjustments need to be made.
My parameters with RSI is 80% over bough 20% undersold and gold can be very dangerous sometimes I have gotten my account wiped plenty of times when I first traded this pair but after a lot of trial and error I have come up with a simple solution that’s really good for me especially with my set up . But most currency pairs like eur usd only move at most 200+ pips on a very active day gold moves double that this morning gold has moved over 400+ pips and it is not even 12noon yet where I’m from , gold isint like a currency’s it moves a lot different , if your interested in trading gold I’m making a thread called journey from $25-10,000 this Sunday and will be focusing on gold a lot as well as a few other pairs your more then welcome to Cheak it out and see how my strategy is will keep you posted this weekend if your intersted
Interesting post I have never traded gold. I trade only 1 pair EUR/USD. Recently took a few trades on AUD/USD but I like to marry pair don’t do one night stands.
You will learn the most by trying and failing until you figure it out. Plus my strategy may not be suitable for you so I hope it won’t take you too much messing with minor things.
will be posting the trades that i made at the end of the trading day