Improving the profit while trading the gold

by Simon Hopes Author

Gold trading is a very profitable business. Thousands of traders in Singapore have changed their lives just by learning to trade gold. Though you can open a gold trading account easily, you need to learn how this market works. Without having a basic knowledge of this market, if you jump into the trading business, you will have to face severe consequences. The top traders at Saxo always take trades with managed risk while taking trades in the gold market. Even though they have extensive knowledge of the trading business, they never break the rules of trading. The follow the critical market dynamics and take trades with discipline. For this reason, they can boost their profit potential to a great extent.

Many traders have basic skills to trade the gold but they don’t know the proper way to boost the profit. After reading this article, you will get some amazing idea which can improve your profit factor in gold trading.

Stick to the trend

In the gold market, one thing is very obvious the market is trending in nature. You can’t make real progress in life without taking the trades along with the trend. Though you can make minor progress by taking trades along with the replacement, it will limit the profit potential. Start learning to trade with the major trend so that you can boost the profit potential with ease. Think about the long term goals and trade the market with discipline. Focus on the core concept of trading so that you don’t have to lose a big sum of money while trying to trade in the trending asset.

Learn to trade the major chart pattern

The professional gold traders at Saxo loves to trade the major chart pattern. For more info visit their website. Chart pattern trading method is very profitable and it allows the traders to make huge gains. Though it will be a complex task for the novice traders, you must learn this technique. Instead of trying to trade the reversal chart pattern, stick to the continuation pattern for the first few months. Once you become good at analyzing the major chart pattern, securing the big market movements is going to be a very easy task. You can make a big profit with ease. So, think about your long term goals and trade the market with discipline.

Ride the news

Riding the news is like trading the news. Being a gold trader, you must take advantage of the major news. For instance, if the FED cut the interest rate while the price of gold is trading at the major support level, you can easily buy gold. This is because the price of gold is valued in the U.S dollar, so a devaluation of the dollar fuels to the gold bulls. Things might be hard for news traders, but it is a very easy task if you practice. Stick to the basic rules and you will be able to boost your profit to a great extent. Never think you can beat the market without doing the hard work. Stick to the core concepts of trading and soon you will become a confident trader.

Fix the errors

No matter which trading method you use for small business, there will be some mistakes in the trading system. You need to fix the errors in the trading system to become a top trader. Without fixing the errors it will be tough to secure the profit at trading. For that, you must use a trading journal so that you can create the trading process in a precise way. Never think you can win big trades without following the core concepts of trading. The core concepts of trading always suggests revising the trading method so that you can fix the faults. Develop the habit of back-testing your system once in a while.