Gold is one of the oldest and most reliable mediums of exchange on earth. Among traders, gold serves as a haven for intrinsic value and is the best investment vehicle for diversifying portfolios. This metal is known as the most sought-after trading instrument for day and swing traders. Various strategies have been developed to help to trade gold. In this article, we’re going to look over a couple of well-known gold trading strategies that are utilized by traders across the globe and also name some of the best brokers to trade gold.
Top brokers for gold trading
Justmarkets
Gold training and analysis
JustMarkets is considered the best broker to trade gold. Many forms of teaching are available from them such as online classes, training course videos as well as market analysis reports. Designed for use by every trader out there, the materials seek to help them understand every move that they make. What sets their market analysis apart from others is that it provides new information about trade gold Forex prices, and trends every day so that one is updated on any possible market changes.
Customer Service
JustMarkets is very good at giving all-encompassing training in the gold trade as well as document analysis tools and is famous for its effective and supportive client service. It is highly rated for its information and the efficiency of its team as they are accessible all around the clock through email, phone or live chat which will enable traders to be assisted whenever they require help in the fast gold trading world.
TMGM
Gold Trading Terms
TMGM is an online currency and trade gold online platform that offers competitive trading conditions for a wide range of traders, having small spreads and charging affordable commissions to keep prices low for this trading activity; making them more convenient compared to other brokers. Traders are also allowed to apply different levels of leverage, through which they can maximize their profits without taking excessive risk in order to get the highest possible returns from currency or gold trading from trading bets; hence, this will help in reducing the chances of large losses due to bad speculations.
Trading Platforms
TMGM offers a variety of platforms for trading such as MetaTrader 5, MetaTrader 4, and IRESS which are best known for having numerous powerful features like extraordinary charting abilities and automated trading as well as being quite an easy-to-use platform. With this assortment, it is easy for any trader to find one that meets his individual needs and fits his way of trading.
AMarkets
Deposit and Withdrawal Terms for Gold
AMarkets offers a gold trade platform, which has a very convenient and flexible system for depositing and withdrawal. It uses many different payment methods such as bank transfers, credit cards or e-wallets. The speed is usually fast and the fees are reasonable enough to make it easy for the trader to handle their money.
Reputation and reviews
AMarkets is known among traders for its dependable services and transparency. User reviews, most of which are positive, emphasize the efficient execution, ease of use of the trading platform, and great customer support on the side of the broker. The company’s regulatory conformity and constant aspiration for top quality go a long way in reaffirming its good name.
IC Markets
Gold Market Liquidity
IC Markets have a good reputation for high levels of gold market liquidity. This enables traders to place big orders without incurring significant price movements, an important issue among those who do substantial trade volume. Furthermore, its liquidity providers especially for the gold trade online market include leading financial organizations which result in great market depth and narrow bid-ask spreads.
Special tools to trade gold
IC Markets has several distinctive tools to make trade in gold online a great experience. It offers a highly-developed charting software package with real-time market info and automated trade systems among others. Besides, the trader enjoys advanced risk control devices and configurable trade pointers for ruling out errors in their transactions.
Avatrade
Tech support
AvaTrade prides itself on having a strong technical support system that is available all the time. This team has been trained very well so they can resolve any technical problem quickly enough to cause little to no disruption in trading activities. Its chat services are live; there is also the option of calling or sending an email.
Regulation and reliability
AvaTrade is highly regulated by the Central Bank of Ireland, ASIC in Australia, and FCSA in South Africa this extensive regulation makes for a secure trading environment, which has cultivated trust among its clients, and others within the gold trading market would agree.
Top gold trading strategies
A trading strategy includes a set of rules that help a trader know when to enter a trade, how he should manage that trade, and when he should close it. Different traders have different trading strategies: some may be too simple, while others may be very complex. If a trader already has a trading strategy, he can also use the same strategy to trade gold. However, sometimes this may not be appropriate. A trading range strategy that may work best for currency pairs with low volatility typically does not work with this metal as its volatility tends to be high. To find out if your strategy is suitable, test it in a demo account, this will allow you to minimize any potential losses.
Most used strategies
- Positional Trading
When trading on stocks, usually you look at some news about a company or an industry. When working with currencies, this will be the economic data and events concerning the country’s currency you trade. Things are a little bit different with gold. It’s a bit complicated to trade in gold because its cost can be affected by many things including geopolitical events, monetary policy, physical supply and demand.
- Trend Trading Strategies
Trend trading involves detecting potential trades that are moving in a direction similar to the trend. The rationale is that the trading tool will continue to go in one direction just as how it is moving either up or downwards. If prices continue to increase consistently (“hit higher highs”), this is referred to as an upward trend; on the contrary, if the prices fall consistently (“make lower lows”), then that particular stock or index is said to be in decline.
- Day Trading Strategy
Day traders typically do not hold trades for just a few seconds like scalpers. However, they tend to have their trading day based on some specific session or time of day that they are trying to exploit opportunities. Day scalpers usually make over 10 trades daily (some very active ones can even makeover 100 trades daily), whereas day traders often have a slower approach and look for 2-3 good opportunities per day.
- Advisors / Copy trading
There are a lot of specialist expert advisors (EAs) to trade in gold. And at that always, there are signal providers whose trading specialty is gold and whose signals can be copy-traded on different copy-trade apps by traders. Thus, this would be the best approach for freshers or the seasoned in forex who feel they are not cut for gold but lack the moment to develop a fresh one.
- Price Action Trading
Trading without indicators is a trading strategy that mostly makes use of the price movement of a currency pair as the main guide instead of complicated technical indicators. Traders have a depth of techniques to choose from ranging from breakouts and reversals to simple or complex candlestick patterns.
How to choose the best gold trading strategy?
When it comes to gold trading, there is no strategy that we could call the best. A certain approach can work well for one trader and does not work at all for another. Once you have decided whether you want to be a scalper or a long-term trader and whether you want to use technical analysis, fundamental analysis or both, you can begin to develop a trading strategy accordingly. At this point, a demo account becomes very important. You can learn all about live trade gold price trends or even the reasons why costs change, but nothing beats watching real-time price movements while backtesting your strategy to gain in-depth information.
FAQs
To trade in gold, choose a broker that offers gold trading, open and fund your account, and analyze market trends. Then place your trade with appropriate risk management options. Constantly monitor your trading and adjust it as necessary.
Experience shows that the most active trading hours for gold are from 15:00 to 23:00 GMT+3. European sessions are also quite active, although slightly lower than in North America. Here, the best time to trade gold is from 10:00 to 18:00 GMT+3.
To successfully trade gold, conduct thorough market analysis using both technical indicators and fundamental factors such as economic data and geopolitical events. Implement a trading strategy with clear risk management practices, including setting stop loss and take profit levels, and continually review and adjust your approach based on market conditions and performance.
