The Nature and Characteristics of Trading Gold
Gold investment does have a fairly high allure, because this precious metal is a form of liquid investment and is not easily eroded by inflation. Whether it's physical investment, namely buying gold bullion, or online gold investment, namely trading gold via the forex market which is usually symbolized by XAUUSD. The form of gold trading in the forex market is excellent among investors, especially novice traders. It's just that one thing that traders must keep in mind is that gold in the forex market still carries risks. Traders just need to understand, be able to make wise decisions to minimize any risk of loss. Get to know some of the characteristics of the following gold trading:
Dual Personality Of Gold
Even for a professional trader, there will be times when it is difficult for him to determine a sell or buy position because of the swing and running effects provided by gold. There are times when the value of gold will soar up non-stop but sometimes the value of gold will also stop at certain resistance levels, so traders need to be careful to execute sell points or buy gold commodities they trade.
Very High Volatility of Gold
This one trait is almost the same as the multiple personality effect of gold where the gold transaction price is in a fairly wide range of daily movements. In a day the transactions that occur can run on average up to 160 pips, but sometimes the given movement reaches more than 300 pips.
Gold Resistance
The next characteristic of gold trading is related to the resistance and support points of gold. When traders use the pivot or Fibbonanci system as a benchmark before the transaction, the trendline that is manually positioned by the trader will usually be followed by the gold trading value. The resistance value given is also more stable when compared to other currency indices which always change at a certain point. The price is more stable when compared to other indices of currencies that always change at a certain point. Its price which is more stable than other forex commodities allows gold to be traded accurately. Gold price resistance also helps traders to promote hold or hold when inflation occurs or the trader needs time to predict economic prices before deciding the point to buy or sell gold commodities.
Price Action Candlestick
The next character in a gold trade is the price action value. The value in question is a situation where the price of gold will move through an axial line in a period and cause a consistent price movement. This price must be considered by traders to determine buy, sell, or close transactions.
Those are some of the characteristics of gold trading that we can convey. If the explanation above is not clear, watch the video below! Hope it is useful.
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