Turn Gold Into £1 Billion With Gold Trading
Gold trading is one of the oldest forms of investment known to man. For decades, it has been the best form of financial instruments.
Gold is one of the best forms of investment. You can easily convert it into cash due to its high liquidity.
Due to its unique position within the world’s economic and political systems, the gold market provides excellent opportunities to profit.
Gold remains unaffected by the inflation, drops in the value of the currency, and global fluctuations that occur in the economy.
So in this article, I will provide you with in-depth knowledge regarding gold trading, which will enable you to earn profits.
What is Gold Trading?
Gold Trading is concerned with Buying and selling of gold as a physical or paper entity in the bullion markets.
The market where buying and selling gold, silver and associate derivatives takes place is known as the Bullion market.
The gold is brought/sold in physical form as jewellery, coins, and gold bars in any market on prevailing rates.
In the paper form, you can buy/ sell as gold ETFs, stocks and bonds in the bullion market.
What is the Bullion Market?
It is a market where gold and silver trading takes place. Its characterisation happens over the counter market.
The bullion market is the prime source of getting gold and silver financial estimates throughout the day.
London bullion market is the primary market for silver and gold trading across many in the world.
Some Facts about Gold trading
- Investors hold 40 % of the World’s Gold Deposits, and 50 % goes into making jewellery.
- Gold is More Expensive Than Platinum and silver
- Pcs, laptops and smartphones contain 50 mg of gold. One can extract only 20% of gold from them.
- Banks are the most prominent owner of gold. The exchange happens through contract.
What are the options for Gold Trade?
There are numerous options available to start gold trading. You can invest in gold in the following ways :
Buying Gold Bullions
A person who wishes to invest in gold can purchase gold bullion, from a precious metals dealer or a bank or brokerage.
A gold Bullion can be in the form of a gold bar or a gold coin or the kind of gold jewellery.
Most buyers usually buy gold coins which are among the highest circulation.
The South African Krugerrand, the American Eagle, and the Canadian Maple Leaf are examples of most bought and sold gold coins.
The gold can also be bought and sold through funds, bonds, stocks, and mutual funds.
Gold Funds Include exchange-traded funds (ETFs) and exchange-traded notes (ETNs).
- Gold Exchange Traded Funds (ETFs) are a combination of stock trade and gold investments.
- investments are made in gold bullion, which is based on the price of gold that is prevailing in the market.
- The transactions are made with the help of a stockbroker, who will buy and sell gold at market rates on your behalf.
Gold Exchange-Traded Notes
- Gold exchange-traded notes are set-term investments that pay returns based on how the gold futures market performs while your money is in stake.
- It can be traded at a higher price or sold and re-bought at a lower price, as they are flexible.
Gold stocks are like shares that individuals can buy/sell in a gold company, mining corporation, gold Mutual Funds or Exchange Traded Funds.
To buy and sell of gold stocks, you require a brokerage account just like you have for shares.
Advantages of Investing in Gold
- Gold is unaffected by the inflation, drops in the value of the currency, and global fluctuations that occur in the economy.
- Owning and possessing gold can be very satisfying as it has the potential upside to it.
- Gold has proved itself to be the best hedge against a down market.
Disadvantages of Investing in Gold
- When it comes to returns, gold trading is a lousy way of investment.
- You can make it only after selling it.
- There are no tax benefits or exemptions. It is associated with investing in gold.
- Gold has less resale value, as deductions are higher when you sell gold.
Strategies Used in Gold Trading
It is advisable to form a trading strategy, and gold is not an exception to that rule.
You are required to deploy trading plans in gold trading also. The most used strategies in gold trading are as follows:
- It is a system where gold trade takes place within the same day, or we can say it is buying/ selling financial instruments within the same day.
- Day traders are active traders who indulge in intraday strategies to gain from the changes in the price of gold instruments.
- Day trading employs a lot of techniques and strategies to take advantage of recognised market inefficiencies.
- In day trading technical analysis is used, and it requires a high degree of self-discipline, knowledge and objectivity.
- Position trading is the most common strategy in gold trading. It holds gold securities for an extended time here.
- The time of holding gold security could be from several months to years.
- Position traders use both fundamental and technical analysis to analyse the potential price trends within the gold markets.
- In swing trading, an attempt is made to secure gains in gold trading over a few days to several weeks.
- In swing trading, trades are carried for a couple of days up to several months to gain profit from a price move.
- Swing trading is a type of active trading, where traders look for quick opportunities using fundamental and technical analysis.
- Swing traders regularly search for opportunities on the daily charts, 1-hour or 15-minute charts to find precise entry and exit points.
Gold Scalping Trading
- Scalping trading utilises profiting off small price changes, which occurs after a trade is executed and becomes profitable.
- It is concerned with executing short term trading in gold markets, and it is shorter than a day trading.
- Time and sales technique are the most common techniques for getting employed in scalping.
- The time and sales method is utilised to estimate when and where to make trades using price patterns and technical indicators.
Step By Step Process Of Gold Trading
Step1: Acquire full knowledge regarding the subject matter of Gold Trading
As the quote goes “investment in knowledge pays a high amount of dividend”. So you should make an effort to learn as much as you can about gold trading.
While getting yourself much needed education or knowledge, you must research on topics such as :
- The history of gold as a currency.
- Understand why gold may be a good investment
- Understand why gold may be a bad investment.
- Learn about the factors that affect the value of gold.
Step2: Make a firm decision regarding how much money you want to invest
All form of investments and trading are subject to market risk. There is always some degree of risk involved as there are gains.
One must have a clear picture of how much investment they can make into Investing in gold in whichever way they want.
Step3 – Decide on how you will invest in gold
Above I have listed some investment vehicles that you can choose from when you have made up your mind to invest in gold.
You have the option to either buy gold in physical form or buying it on papers. You can invest in gold by Gold bullions, Gold socks, ETFs and Mutual funds.
The step is vital because the success and failure of your investment depends on your chosen investment vehicle.
Step4 – Make a Purchase of Gold
If you have decided to invest in gold physically, then you must find a reputed gold dealer that is trusted to sell good quality gold.
Before buying gold from the dealer, you must check the gold certificate, gold quality and gold weight and research gold dealers.
Tips to keep in mind while buying gold bars, coins and gold jewellery :
- Find a reputable gold dealer by checking your government website
- Always Compare gold dealer prices to get the best value
- Purchase gold bars for long-term investments only.
- Buy highly-circulated gold coins for a smaller and flexible investment.
- Use cash, online banking, or a Bank check to purchase your gold.
- Store your gold in a bank Locker or home safe to keep it secure.
If you have decided to invest in gold indirectly, then you must keep these things in mind, such as :
- Find a reliable financial advisor or a broker by asking for referrals from friends or colleagues or research on the internet for a sound investment decision.
- Invest in the gold exchange-traded fund for a low-cost investment.
- Invest in gold exchange-traded notes for higher earning potential.
- If you want to invest a small amount in gold, you can try mutual funds and systematic investment plans also.
Dos and Don’t for Gold Trading
- One should avoid buying gold from unreliable websites or Dealer as there are chances that you can become a victim of fraud or a scam.
- Gold stocks are prone to rise and crash frequently, so you must be patient.
- As an investment strategy, consider putting a fixed amount of money towards gold each month regardless of the current price prevailing in the market
- Make sure that you have trust in everyone who is handling your money. Ask question whenever necessary.
- Whenever you face difficulties, it is best to rearrange your trading strategy accordingly.
- Always Keep in mind that gold bars are often harder to resell than gold coins.
- It is obligatory to Stay updated with the latest trends and news related to gold Trade.
There are numerous ways in which you can invest in gold. You have the option to trade in direct and indirect form.
To succeed in the bullion market, try to make the best choice of investment vehicle.
Gold trading is the best source of wealth generation, the last tip that I can give you is that if you invest in gold, try to aim for long term investment.
I hope I was able to give you full information regarding gold trading. If you are confused, you can refer to books and take help of an expert in the field.
Forex strategies help investors to stick to a particular plan when trading currencies. The discipline has proven to be elemental in increasing profits generated from Forex markets. Forex strategies can be based on technical analysis or vital, time-based events. Nonetheless, investors need to find the most profitable Forex strategies that will maximize their chances of amassing massive profits. An effective strategy should be simple and have customization features. Position Trading Strategy With the rising trends in the Forex market, several traders keep wondering why they are not making enough money from the market while winners running trades for weeks and months reap thousand of pips in profits. The position trading strategy is so far the most profitable Forex strategy. Top traders have attested to the magic position trading has worked for their Forex profits, and its high time Forex investors adopted the approach. However, short-term traders may find position trading challenging, but surprisingly, it’s the easiest and top profit earner for patient trade gurus. As a position trader, you will be interested in longer term price movements in the market. Nonetheless, this technique requires you to have an in-depth knowledge of the essential factors that can influence price changes in the long term. Additionally, comprehension of technical timing is crucial to enable you get in and out of particular positions at the most convenient time in the extended market cycle. Pointers to a Position Trader You are more likely to succeed in position trading if: - You have a deep comprehension of Forex fundamentals and how they affect your currency pair. - You are patient enough to wait for your grand rewards. - You make educated and independent decisions that are not influenced by popular opinion about market movements. Technical Tools That You Will Find Helpful in Position Trading 1. Support And Resistance The aspect of support and resistance forms the basis of technical analysis in Forex trading. Conventionally, Forex investors buy at or near areas of significant levels of potential support in an uptrend. Contrarily, the traders sell near or at positions of substantial levels of possible resistance in a downtrend. Resistance refers to the areas where prices stop in an upward movement and turn around. Consequently, resistance stops further advancement of the price. The vice versa is true for support. 2. Trend Line Indicator The trend line, though simple, is an indispensable trading tool in position trading. Undoubtedly, trends and price actions become evident when viewed over more extended time frame charts. Accordingly, apply a trend line analysis to capture invaluable insight into the market based on the general direction of the price action. 3. Moving Average Indicators Moving average stands out as a practical, useful, and easy Forex indicator for position trading. The indicator accumulates past price points and averages them to provide you with a better view of the currency movement. A moving average indicator can be simple (SMA) or exponential (EMA). Additionally, you can utilize the averages to establish the trend of the prices. For instance, a currency pair could follow a period of rising value in a particular time frame. This forms an excellent opportunity for traders to harness profits. On the contrary, a downtrend over a period translates to losses to investors. Furthermore, as a keen position trader, you will need to regularly analyze macroeconomic data of the major countries represented by their respective currency pairs. Some of the crucial economic factors to consider in position trading include; - Inflation rates - Economic and political stability - Interest rates - Trade balance A Sample Position Trading Whereas there may be variations in position trading strategy, the following steps will guide you on how to trade using the approach. You may consider customizing the strategy a bit to fit your preferences. Select your currency. You need to find currencies that have been gaining over the recent months and those that have been falling too. For measurement, set a 12 period and scan the weekly charts of the most prominent currency pairs. By looking at the currencies that have remained above or below 50 in their crosses or pairs, you can determine which pair to trade in the following week or session. Install charts on appropriate time frames. Proceed to install the 10-period RSI, 10 period SMA, and 5-period EMA. You should enter trades in the direction of the trend when all the indicators align in the same direction as the trend on all time frames during active hours. Determine the percentage of your account that you are going to risk in each of your trades. Determine the cash you intend to risk and divide it by the 20-day average true range (ATR) of the currency pair you are about to trade. This shows how much you should risk per pip. Enter the trade as per step 3. Place a hard stop loss on 20-day ATR away from your entry price. Exit manually if the trade moves against you rapidly by about 35 pips and shows no sign of returning. If this doesn’t happen, wait until the end of the day. Exit if the trade is showing a loss with no promising candlestick pattern. If the trade is in your favor by the end of the day, wait for it to return to your entry point. Additionally, when it fails to bounce back a few hours after hitting the entry point, exit the trade. This should continue until the trade reaches a level of profit twice your hard stop loss. Subsequently, move the stop to break even. As the trade grows in your favor, move your stop in the direction of your profit target. A good trade should make thousands or hundreds of pips in a superior trend.
I have been a dreamer since childhood. Before I started any work, I used to dream about that work. I have tried to do different kinds of work in life, I have tried to concentrate on all the work. Couldn't hold on. For some reason, my work would stop. The results would never have been better. I could not even go around the success of the work. Dreams could always be elusive. Then once I came to the online world. I started my journey with SEO. I have mastered the work of backlinks. Once I lost interest here too. I couldn't find any match between the buyer and the work. And as a result of working at night, my studies started to get worse. Then I left it out and focused on my studies. In the meantime, I once became acquainted with the world of article writing. I started doing well here as I already had the habit of writing. I have also finished working on a 2,000 dollars project by an Italian buyer. I lost interest in this too when the buyer insulted me unintentionally. But it was not my fault at all. I hired some of my younger siblings to write my article. But day by day their writing became so bad that the pressure of the buyer also increased. Even after I told them to be more careful, they seemed to be doing worse in writing quality. Their plagiarism and grammar continued to grow in all aspects. At one point the buyer became dissatisfied with me. I realized this and started writing again. But I do not know what to do. My exact writings also started to be called copy-paste, my 100% Pluralism also started to stick to free writings. In the meantime, he started procrastinating to pay for the work. Although I confessed my mistakes to him. I also told him that I would not write an article with anyone. Even after that, one after the other started behaving inconveniently. This time I understood his problem. He got a writer cheaper than me. So I said nothing more. I said goodbye and stopped working with him. A little bit of familiarity with Forex. Through which he only took 15 thousand rupees from me. Work taught nothing. One day I saw that he lost himself regularly. At one point he also had to leave. However, I realized that there is no problem for the buyer in this forex market. The workplace is always ready. I just have to learn to work at a cost. This time I started with Forex. My dreams of writing articles also began to fade. I started reading many Forex articles online. Gradually the attraction continued to grow. Then I met another person, he took 6000 rupees to teach the work. But he told me to invest 500 with some basic files. He said if you don't invest, you can't make a profit. I met a man named Olid on Facebook at a time when I was almost frustrated after hanging out with so many others. He was from the United Arab Emirates. I got news from him about all the ideas like no deposit bonus, forum posting. I started working according to his guideline. I learned support resistance, pivot, channel, trend line, candle pattern, etc. from his hand. And I learned all this online. In the meantime, I also got the news of Olid's death in a road accident. I lost my forex guru. I believed in my only friend in the forex world. Then began the self-analysis. I started to analyze the strategy shown by Olid. At first, there were many problems to understand the market. I started to get over it slowly. Among these are acquaintances with many traders. Some are making a good profit, while others are trying to make a living by making empty statements. They are manipulating in the name of teaching forex by opening various types of paid groups. Many are really working to teach Forex again. Those who teach real forex will never give you any tempting offer. They will try to show you the real side of Forex. Today I have begun to fulfill my elusive dreams. And all of this has started to give me Forex. I know that all my dreams will be fulfilled if God has mercy. Forex is a market that can do everything you want. I could not understand when 6 years had passed. In the meantime, how many Forex scholars have come and gone, I am the one. I wish everyone blessings so that I can do better. All will be well.
What sometimes amazes me about trading is a belief that we must approach the market in a specific way to bring about success. When I hear people say “you must be like this” or “you should approach the market like that” I have to chuckle to myself. True, there are some core skills which are beneficial to any trader, but the way in which our brains work vary in perhaps one important way and failing to recognize this in yourself is like well, forcing a left hander to bat right handed. I guess it’s really boils down to the old adage: “find a method which suits your personality”.The human brain (on which I am not an expert) generally speaking has two major aspects to it. The left and the right side of the brain have different functions and the balance in different individuals can vary. The left side of the brain we are told is responsible for logical, analytical and the more practical sides to personality. The right side of the brain takes account of a person’s emotions, intuition and creativity.As they pertain to trading, I believe the different balances are mostly obvious in their benefits. Strong left brain advantages are very much about logical planning and discipline. Mechanical trading is a possible strength. Right brain dominance is about intuition and creativity. Seeing the market as a combination of forces and becoming synchronized with it is potentially such a powerful tool for a trader if they can harness it. A combination of both the left brain practical and logical nature with right brain intuition and creativity would surely be a force in trading the markets.But whilst there are benefits to each, there are also negative aspects to contend with. Traders who are predominantly left-brained are prone to being very rigid in their approach. Also they must think a great deal through, when sometimes the speed of the market requires seemingly Jedi-like skills. A right-brained trader might struggle with consistency of execution despite having a good idea of where the market is headed. As I always like to point out, it’s not the knowing of where the market is headed that makes money, but the effective management of a position while it’s on its way that brings success. So a mix of the two should bring about the greatest chance of success right? Yes and no. The problem with a more balanced type trader is often that they get conflicting messages. There is a need to be methodical, yet when they trade there is often the urge to satisfy their gut instincts about the markets. Acting in a purely methodical fashion only leads to the feeling of ‘missing out’ on the biggest moves and taking cues from the right side of the brain can lead to breaking of rules and discipline which ends in losses when trades don’t play out quite like they were expected to.To ‘bat’ in our natural way, we must first recognize where our left brain/right brain balance lies. We absolutely must endeavor to incorporate our greatest assets into the way we trade and work on the areas where we are weakest. However, gut instinct and intuition are formed from practical experience and underlying competence in a method. Without this, it’s often true that the feeling of what may happen is no better than tossing a coin or in many cases worse. But if you’re both logical and intuitive in nature, you must approach the market in a way which allows you not only to capitalize on your practical skills, but also gives you the freedom to trade with your instinct and enter “the zone”. The market can be a raging torrent of activity at times and so you must either be mechanical in trading it or mechanically approach how you trade your intuitions. There is no room for uncertainty or indecision at these times.I feel that so long as a trader has strong self-awareness, any type can experience great success. However, to trade truly with a left and right brain in harmony is something which I believe can potentially elevate a trader to the highest level of performance.Albert Einstein once said:-“If I were not a physicist, I would probably be a musician. I often think in music. I live my daydreams in music. I see my life in terms of music.”I believe that he would have made a wonderful trader, don’t you?Trade well.