Interested in trading forex pure gold? First, you need to learn the skills to be able to do so. Gold offers great opportunities and high liquidity for those who come out on top. None of this means anything when you do not know what you are doing.
1) You need to know what moves the gold. There are 3 factors that influence the way people do business with their gold trading.
- a) Fear and greed.
- b) Inflation and deflation.
- c) Supply versus demand.
Here is an example of the above 3 factors:
Some selloff hits all the world markets. Gold takes off in a big way. Many will assume that fear has something to do with it. It does in a way. The fear is driving the blind crowd to carry the value even higher.
Say the inflation fears kick in and everyone panics. They begin selling off their gold shares left and right. This second fear becomes more powerful than the first fear that carried it.
You have to understand what is driving the fears. Once you understand this, you get a better understanding of how, when and where to buy your gold shares with Forex Pro Gold. Same rules apply with greed. Sometimes greed can work for you and sometimes it can work against you. When you do not understand the psychology behind the fear and greed, then you risk making the same mistakes as the rest of the crowd.
Don’t be Gordon Gecko:
2) You have to understand the crowd you are working with. Gold attracts many people. It attracts people for different reasons. Those of you who are in this for the long haul, you should get away from the downtrends and the crowds that attract them. Some only get in the game of buying and selling gold for s short period. This is where the trends come in handy. Those of you interested in the long-term, you cannot afford the distractions.
3) Take some time and read the charts. There are charts that offer a history on some of the gold. Those who know the history of something ar more likely to make wiser choices. These are not the people who are being led to slaughter like a flock of sheep.
4) There are many venues in which you can buy and sell pro gold with Forex. You need to choose wisely here. Do not assume that a venue with a larger crowd is going to be the better option. Sometimes the more obscure venues offer a better chance at getting some value.
The basic rule of thumb here is it will move slower during the quiet periods. The gold will shift faster during the peak times. You need to pick a market that can give you what you need and when you need it. When it comes to buying and selling pro gold, you do not want to overcomplicate matters.
Focus on high liquidity and an easy execution of trading.