Trading the price down. Only a few weeks after experts were saying gold would take off. Never believe experts. Only the chart.
The moderator of this forum really needs to find a new job. He allows character assassination, outright abuse by anonymous members, bullying and harassment. If this was a Facebook group of school students parents would be worried about the safety of their kids. There are some seriously mentally unstable people on this forum who all hide behind avatars, spread their hate and are proud of it. Then they try and police your thought and speech. DO NOT RELY on this forum for education or assistance. Any forum that allows this behavior is toxic to a traders success. To gain advice you can only deal with people who are willing to show their identity and stand behind their claims. This review is based on two days pent on this forum. That was long enough. If a trading coach writes a piece to attempt to assist new traders they are vilified and attacked by trolls. If you defend your position the administrator, another anonymous figure will ban you for trolling. Antifa of the trading world folks. You need better support than what you will get here. I guess it sells advertising though. In my experience it is fueled by ego not information.
I don’t really need to write this thread. Whether you’re a Japanese housewife, high school student or unemployed middle manager just get started! Open a demo account on Sat. Place a trade on Monday and make 30% by the end of the week. (trigger warning for experienced traders). But without experience and knowledge your chances are pretty small.
Trading forex gives you many choices of risk and exposure including this one. It also gives you the opportunity to lose 90% in a week!
As a trader your challenge is to maximise profit and minimise exposure with two choices. To day trade or trend trade. You can trade the news also but imho running barearsed down a main road is more fun and less exhausting.
As a daytrader you will be challenged to live in the moment with most of the action happening in our overnight hours. As a trend trader you will be challenged to identify a trend and stay in it ideally to the end thereby living in future moment/s of trading profit.
Whichever you choose you will constantly need to challenge your biases and assumptions.
As a trader you’ll more than likely go through a process of;
Learning the basics – YouTube/Demo/Books/Seminars/Forums
Learning in detail from others – YouTube/Coach/
Testing your strategies – The best experience comes from trying
Refining your approach – Finding the discipline that takes so long to acquire
Maintaining success – Reducing your risk, reducing your trading activity and placing well timed trades that will give maximum profit in a given time.
At the end of this process you’ll realise the most important tools are trading signals. These will tell you when to enter, when to take profit and how long to stay with the price action. Signals will give you the greatest certainty of success. Any other approach is judgement based on bias and analysis with still a high chance the price will move against your trade.
And then even as an experienced trader with the best trading signals you’ll still get an itchy mouse finger and place that dreaded trade, proving yourself a human-being motivated by emotion to make stupid decisions.
But you kick yourself (not for the first time) and promise to be more disciplined and less human. Recover and start again. Because the more times you choose to give up the more you’ll convince yourself that success is not possible.
Books I have read and liked, The Forex Trading Manual, Javier H. Paz
Coaching – The cost of a coach will save you money you may lose until you reach the status of success. Like all coaches they will save you time and challenge your beliefs.
YouTube – Search Forex Techniques and choose from 10 million videos.
For gold traders. We are in a new world as of this week. China is the world’s biggest oil importer. As Trump threatens China’s trade with the US China enters a new contract to pay for oil with a gold backed Yuan. This will circumvent the use of the USD (the petrodollar since 1973) from an oil delivery from say Russia. What is the likely impact on the USD and Gold? An inverse price reaction. The USD will likely weaken (this week hit .91) and gold will continue to increase. It is also interesting to note that the .91 level reached this weekly has broken a monthly fib support for the USD index.
As a gold trader living in Noosa I’ve tried many strategies to cope with the time difference between us and the US. When first going live in Jan 2015 I was trading the hourly then 4hrly chart. From memory volumes were much higher and my lot sizes were certainly higher which meant profit was impressive. From $6K to $50k in two weeks. But I was trading all hours and of course the burnout kicks in fast. You can’t trade the gold chart like a zombie for one many reason. Manipulation. The price can whiplash like a bitch on the hourly. Losing lots of money isn’t fun. I tried alarms, broken sleep and sleeping during the day. But longterm these were never going to work. I’m one of those people that need good sleep and sunshine. And the object of trading is to create a better life – not worse.
One of the main reasons I have continued as a trader was the decision to never give up after losses and strategy failure. The other reason was to constantly study the chart. Understand its’ structure and character. And understand the manipulation by the banks and The Fed. There were 12 weeks in 2016 when we should have crossed over the long term bear trendline with poor data releases under Obama. Both the Brexit and Trump election days were clear examples of “involvement” by the Fed with plunge protection of the USD.
So the more you examine the price action the quicker you reach the conclusion that the best strategy is to remove the noise and trade long. Because trading any other chart than the weekly increases your error rate. Certainly profit can be made but not sustainably over the longterm. And this is mainly due to time difference. Who wants to spend the night trading the higher volumes and news and then sleep the day? Not anyone that enjoys sanity and sunlight to function.
A quicklook at the gold chart shows that the price trends weekly usually on a fib retracement structure, constrained by the bear trendline and daily on a fib fan. At the moment we are in week 9 of a fib fan with support on the ma’s. So if anyone wants to trade gold, which in my opinion is the best pair for volume and price action I hope this helps you. There have been many financial experts over the past few years say that gold will go to $4500 – $10,000. Personally I don’t really care what the price is – providing I’m in the trend and see a trend change.
PS. Once the price closes outside the bear trendline this will attract the volume of the US mutual funds which will change the whole nature of the market through higher volumes but I digress.