Steps to fry gold :
- Find gold trading trends
First of all, you need to determine the direction of the overall gold price trend. The reason why the trend is so important is because it can help you determine the general direction of the transaction. Assuming that when the price of gold goes out of a series of highs and lows, then the direction of the transaction at this time is It should be looking for opportunities to go long. On the contrary, when the price of gold has come out of a series of lows, the best trading strategy should be to go short on rallies.
- Determine the entry time
The second step to do is to determine the entry strategy. Generally speaking, traders can choose a retracement entry strategy or a breakout entry strategy. In an uptrend, a retracement strategy focuses on the retracement of the trend in order to enter the market at a lower price, while a breakout strategy only enters when gold breaks a key resistance level.
- Do a good job in risk management
Traders can set the stop loss of each transaction according to their own risk tolerance. A rule that is respected by many traders is that the maximum loss of each transaction does not exceed 1% of their own funds. This way, even if the trade is stopped out, you still retain most of your capital to prepare for the next trading opportunity.