What’s Possible: A Guide to Estimating Earnings From Forex Line Trading
Some estimates say that about 12% of UK citizens engage in stock trading. As investment strategies continue to grow in Europe, there’s always a new strategy and topic to learn. One of the most interesting is forex line trading. But what is forex, and how does one succeed as a forex trader? While the concept is far from new, many investors and traders aren’t aware of the excellent strategy. If you’re curious to learn more about foreign exchange and currency trading, we’re here to help. Read on to learn more about how to make a forex profit and boost your investment portfolio. What Is Forex? Forex is a shortened version of the term “foreign exchange.” The foreign exchange relates to currencies outside of one’s nation being traded. The term is also used as a general term for the forex currency trader industry as a whole. When a currency is converted between nations, there’s often a change in the value. For example, the spending power of $100 in the US is not the same as in Canada, England, Germany, and more. $100 may be worth significantly more (or less!) in one of these territories. As a result, traders can earn a profit by exchanging their currencies back and forth. There are many strategies to do so, but as a whole, forex is not seen as a beginning industry. It’s quicker, more intense, and more volatile than other styles of trading. Understanding Line Trading There’s more to forex than knowing the term. Here are some of the most important factors to forex line trading. What Is a Trade Line When you look at the rise and fall of an investment, the graph is most often in a line. The line going up means that prices are increasing, while the line going down means prices are lowering. The goal is almost always to purchase while the line is down and sell while the line is up. Forex line trading uses this line as a guide for when to buy, exchange, and sell. Strategies The most common forex strategy is to awaken early and spend time watching the lines. Exchange rates are exceptionally volatile and will change quickly, sometimes several times within an hour. As such, this popular strategy requires strict attention and focus. A jerk in the trading lines can lead to an enormous forex profit, but a moment’s inattention can lead investors to miss the window. Another strategy is to research foreign events. As nations engage with different events, their currency may rise and fall. For example, earlier this year the United States dollar hit a high against the Japanese yen. Due to this, there was speculation on whether the Japanese markets would intervene in the market as their currency weakened. Traders watched closely and made predictions on the foreign exchange to try to maximize their profits. Benefits of Forex Line Trading Why should budding traders focus on forex line trading over other types of trading? To start, forex shouldn’t be your sole investment. It’s best for investors to have a broad portfolio that has several different investments. That way, if there’s a large crash to the forex charts, your stock charts aren’t as affected. Here are some of the top benefits of forex line trading. Quick Return For many investors, the long, patient game required to profit off of traditional stocks is grating. Some investors choose to get into the markets with the hopes of striking a large profit quickly and then dropping the industry. Many of these investors find success in foreign exchange. Forex profit is quick and long-term investments are less common. Primarily, this is because it’s difficult for a nation’s currency to see the considerable growth needed to make a long-term investment worthwhile. For this reason, day traders find a great deal of success in forex. While not all interactions are swift, it’s a feature that many traders prefer. High Volatility Another benefit is the incredible volatility of short-term trading in foreign currencies. A few hours can see currencies shift radically before equalizing. Due to this, skilled traders can often make sizable investments in a downturn. When the markets lift again, they’re able to make a considerable profit in the space of a few hours. Great Range Finally, a great benefit of being a forex trader is the range of options. The foreign exchange markets have dozens of pairings. While some are more popular than others, traders are free to pick and choose what appeals to them. Doing so can also help some with research. If someone is already knowledgeable about one country and its current events, trading their currency may be easier than learning such information on a “new” nation. Dangers of Forex Line Trading As with any investment strategy, forex line trading has risks. Here are some of the primary risks of dealing with forex line trading. Overly Volatile Volatility leads to profit. Without volatility and shifts in the market, lines would never rise enough to make a profit off of the downturns. However, the line goes both ways. Even the most experienced traders often make mistakes while investing. Since the market is more volatile than traditional stocks, it can lead to more dramatic losses. Additionally, these losses can happen quicker than one can get a hold of them. Research Heavy Traditional stocks aren’t exceptionally difficult to grasp. One can pick an industry, research a few stocks, and move from there. By contrast, forex markets are much more research-heavy. They’re also more impacted by outside events, politics, and more. Beginning forex traders may find the amount of research and out-of-market work they need to do a bit overwhelming. Making Your Forex Profit Forex line trading is a great way for traders of all skill levels to make a quick profit. While the volatile markets are research-heavy, skilled traders are capable of making the smart decisions needed to generate a forex profit.
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Understanding Gold Prices in USD: What Makes It Fluctuate?
Few resources have been coveted throughout history more than gold. Easter Europeans used it for decoration, Egyptians used it for coinage, and even today, many investors take an interest in gold. Maybe you’re doing an internet search for terms like “gold prices usd,” “gold prices in usd,” or “gold price fluctuations” in an attempt to understand what causes the price of gold to change. After all, gold is an investment, and all investments carry some risk. So how can you understand your investment better? It starts here with our guide. Keep reading and we will explain the correlation between gold prices and USD. Factors That Affect Gold Prices in USD There is no singular factor that affects the price of gold. Instead, gold prices in USD are affected by multiple factors: supply and demand, the central bank, interest rates, inflation, and EFTs. Supply and Demand The first major factor affecting gold prices is supply and demand. Gold isn’t a one-time consumable. The majority of the world ever mined is still somewhere around the world. Plus, even more gold is constantly mined. That means the price of gold should, in theory, decrease due to supply. However, that doesn’t happen with gold. So what makes gold different? For one, gold is constantly in demand. The number of people worldwide who want to buy it is constantly on the rise. Almost half of all gold mined is for jewelry. However, once used for jewelry, the gold is effectively taken off the market-typically for at least a few years, if not much longer. Others are interested in gold as an investment. Regardless of the reason for their interest, if the demand is higher than the supply, the price of gold will rise. If the inverse is true, the price of gold will fall. Central Banks A central bank is a public institution that is in charge of implementing monetary policy in a specific country. They also manage the currency of a country and control its supply. These policies can influence the price of gold. Central banks can also buy or sell gold. Why would they purchase gold? They see it as a safe haven against volatility since it tends to hold its value. Much like an individual investor, a central bank may buy gold to diversify. This can happen even in emerging markets, and many countries accumulate gold. While no country is currently using the gold standard, gold is still an important asset to their economies. Every country has its own central bank. In the U.S., the central bank is The Federal Reserve, which is headquartered in Washington, D.C. The Federal Reserve has been the central banking system of the U.S. since 1913. Interest Rates The price of gold can also be affected by interest rates. Aside from price depreciation or appreciation, gold does not offer any return. When interest rates rise, gold loses favor over interest-bearing securities. Likewise, when interest rates lower, gold often becomes more attractive to investors. Who determines interest rates? That goes back to the central banks. In the U.S., the Federal Open Market Committee (FOMC) meets several times a year to discuss monetary policy and interest rates. Inflation Inflation is the overall rise in prices across an economy. When inflation rises, money doesn’t go as far as it used to. As inflation rises, purchasing power decreases. That’s where many investors turn to gold. Due to its rarity and history of reliability, when inflation hits and there is economic uncertainty, gold prices tend to increase, due to increased interest in gold. Investors tend to become worried about losing the value of their stocks and bonds, so they may turn to other assets such as gold to help preserve their wealth. As a result, the price is increased. When the U.S. dollar is strong, the price of gold tends to be lower. However, when the USD is weak, it is likely to drive the price of gold up. More gold can be purchased when the USD is weaker. Many factors can cause inflation. Most recently, various market problems were caused in the U.S. by the COVID-19 pandemic. That, compounded with a tightening labor market, led to a spike in inflation after 2020. ETFs ETFs can also affect the price of gold. An ETF is an exchange-traded fund. These gold EFT funds allow investors to purchase gold without buying mining stocks. These ETFs are traded on a stock exchange. When an investor buys into a gold ETF, they are effectively buying a portion of the gold held by that fund. There are a few major gold ETFs. A few examples include iShares (IAUM), Invesco DB Precious Metals Fund (DBP), and SPDR Gold Trust (GLD). Gold ETFs can be a more affordable and easier way to invest in gold, without purchasing the physical commodity (and trying to store and safekeep it). Gold ETFs are highly liquid, allowing you to buy and sell them quickly. They can also be used to diversify your portfolio, helping you spread your risk. Gold prices and gold ETFs are a sort of “chicken or egg” scenario. Gold ETFs reflect the price of gold. However, if more investors invest in a gold ETF, then they are effectively buying a share of gold-which in turn may increase the gold price. Aside from ETFs, there are other gold stocks you can buy. Take a look at those if you want to further diversify. Get More Gold Trading Advice When it comes to understanding “gold prices in USD” and the connection between gold and the U.S. dollar, there are multiple factors that come into play. The popularity of EFTs, economic policies set by The Federal Reserve, supply and demand, and more all determine how popular gold is. One thing is for certain, though: gold is always popular, and is always a great way to diversify your portfolio.
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Beginner Guide: How to Start Day Trading Gold
Gold has surged to a 6-month high of around $1,850 per troy ounce. Analysts expect records in 2023. With its high liquidity and potential for profit, day trading gold has become a popular venture for many traders. However, trading gold requires a solid understanding of the market and a disciplined approach to risk management. Without learning how to trade gold properly, you’ll be looking at losses left and right. In this article, we’ll explore some tips and strategies for those looking to start day trading gold. Keep reading to get started. What Is Day Trading Gold? Before we dive into how to trade gold, let’s first discuss what day trading gold is. Simply put, gold trading is the buying and selling of gold as an asset to make a profit. When you day-trade gold, you buy and sell gold within the same trading day. It’s a popular choice for traders due to the high liquidity of the gold market. They are many opportunities to enter and exit positions quickly throughout the day. Risks of Day Trading Gold What’re the risks involved for day gold traders? For starters, the gold market can be volatile at times. This volatility can lead to rapid price movements. For traders, this can mean significant losses. Leverage used in day trading is another risk to comprehend when learning how to trade gold. A lot of traders will use leverage to increase their potential profits. Unfortunately, it also means they’re exposed to greater losses. Gold traders must be careful not to over-leverage and use risk management techniques like stop-loss orders to limit their losses. Whether you’re trading gold online or in person, know that it takes a significant amount of time and effort. As a trader, you’ll need to devote the necessary time to research and study technical analysis to make informed trading decisions. If you fail to, you may miss important information or make impulsive decisions that result in losses. How to Trade Gold Are you ready to begin learning the ropes? Follow these day-trading gold steps. 1. Learn the Basics of Gold Trading You’ll first want to learn the basics of how to trade gold. This includes understanding the different ways to trade gold, such as physical gold, gold futures, options, and ETFs. There are many resources available to help traders learn about gold trading, including online courses, books, and trading forums. Traders should take advantage of these resources to gain a solid foundation in gold trading before attempting to day trade. 2. Choose a Trading Platform You’ll then want to find a trading platform. When trading gold online, this means software to place trades and monitor your positions. Do some research to find the right trading platform for you since they all have their pros and cons. Consider these factors: You’ll find that many brokers offer free demo accounts. Be sure to test out different gold trading platforms before landing on one as your daily driver. 3. Develop a Trading Strategy When learning how to trade gold, you’ll want to develop a strategy. This is a set of rules and guidelines that dictate when to enter and exit trades, how much to risk on each trade, and what types of trades to take. A trading strategy should be based on the trader’s goals, risk tolerance, and trading style. It should also take into account market conditions and technical analysis to identify potential trading opportunities. 4. Practice With a Demo Account Once you have a gold trading strategy in place, you’ll want to then practice with a demo account. With a demo account, you’ll use the simulated trading environment to test your strategies and trading skills without the risk of losing real money. Gold traders should take the time to experiment with different trading strategies and techniques in their demo accounts. They should also keep a trading journal to track their progress and identify areas for improvement. 5. Start Day Trading With Real Money After gaining experience with a demo account, traders can begin day trading with real money. However, traders should start with a small amount of capital and only risk what they can afford to lose. Traders should also continue to use risk management techniques, such as stop-loss orders, to limit their losses. Traders should monitor their trades closely and be prepared to adjust their strategy if market conditions change. It is also important to maintain a disciplined approach to trading, avoiding impulsive trades and sticking to the trading plan. Key Factors Now that you’ve learned the basics, there are some key factors to consider. Let’s take a look. Understand the Factors that Affect Gold Prices Traders should also become familiar with the factors that can affect gold prices, including economic data, geopolitical events, and market sentiment. As a day trader, you’ll want to stay up to date with current events and trends. That way, you can make informed decisions and adjust your trading strategies accordingly. Use Technical Analysis to Identify Trends and Patterns Technical analysis is a key tool for day traders, and it can be particularly useful in the gold market. Traders can use technical analysis tools, such as chart patterns and indicators, to identify trends and patterns in gold prices. By analyzing historical data and market trends, traders can gain a better understanding of where the market may be headed and make more informed trading decisions. Day Trading Gold is a Rewarding Activity Day trading gold can be a rewarding activity for those who are willing to put in the time and effort to learn the market and develop a solid trading strategy. By understanding the factors that affect gold prices, using technical analysis tools, managing risk, staying up-to-date with market news and trends, and taking a disciplined approach to trading, traders can increase their chances of success in this exciting and dynamic market.
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Day Trading: How to Get Started and What You Need to Know
Did you know the average day trader salary is £56,633 in the UK? However, numerous day traders make well over that after learning the tricks of the trade. Are you interested in taking your investments up a notch and getting into day trading? For those unfamiliar with the practice, it can seem like an intimidating and overwhelming concept. However, understanding the basics of day trading doesn’t have to be hard, nor does getting started as an investor. This guide will walk through exactly what you need to know about how to day trade for a living, from understanding charts and technical analysis to creating your unique strategy for success so that you can begin confidently making informed trades. What Is Day Trading? Day trading is the practice of buying and selling investments like stocks, bonds, or commodities (like gold) within the same day. Traders usually follow a strategy that involves making decisions based on the following: With day trading, you can buy and sell a stock multiple times in one day to take advantage of small price movements. Gold is an especially popular commodity to day trade because it’s seen as a safe-haven asset, and its price often moves in response to economic and geopolitical events. How to Day Trade for a Living Learning about how to trade gold, types of gold, and other stock and trade secrets will only take you so far. To trust learn how to day trade for a living, you have to implement what you’re learning in a real-world scenario. It’s about more than simply understanding how things like scalping and range trading work. If only it were that easy. To make a living from day trading, it’s important to research and understand how the market works. That’s the first step. Once you have a basic understanding of terminology and strategies, it’s beneficial to sign up for signals from experienced investors to identify good entry and exit points for trades. These signals can help you stay up-to-date with market activity and movements, giving you a better chance of making profitable trades. Additionally, monitoring technical indicators such as moving averages, stochastic, and trend lines can help you have better success in the markets. Ultimately, you need to remain disciplined when making decisions so you can stick to your plan and achieve consistent profits. What About Day Trading Gold? Day trading gold is a popular form of day trading for beginners. It differs from other forms of day trading in a few ways. One major difference is that day trading gold requires more patience and discipline than other techniques since the market can be volatile. Additionally, gold prices may be affected by news or economic events. This means that you must monitor the news and keep up with market trends to be successful with day trading gold. Furthermore, the returns on gold tend to be larger than other markets due to its higher liquidity and low spreads. As a beginner, you should know that even though it offers good returns, there are risks associated with day trading gold. This includes increased transaction costs and the high cost of buying and selling the metal. Knowing these factors will help you make smarter decisions regarding gold trading. Types of Gold Gold trading comes in many forms, as you can make different types of gold investments. Each of these methods of trading gold has its unique advantages and risks, so it’s important for investors to understand them all before deciding which one is best for their needs. Ways to Trade Gold There are two main types of gold trading: over-the-counter (OTC) and exchange trading. OTC is conducted in the London market, either between banks or large institutions and their clients. It is an off-exchange transaction with minimal regulations, which makes it a potentially risky form of trading. On the other hand, exchange transactions occur in over-regulated exchanges such as COMEX in New York or TOCOM in Tokyo. In exchange trades, buyers and sellers are matched according to available bids and asks on gold spot markets or futures contracts. Both forms of gold trading offer investors potential profit opportunities depending on their risk appetite and expertise. Why Day Trading is Controversial Why is day trading commodities like gold so controversial if it’s so lucrative? The biggest reason why is that there are internet day-trading scams that target amateurs seeking quick returns. Such people and gold trading platforms tend to overlook the risks and not have sufficient knowledge. Additionally, although day trading can prove profitable, it is risky and requires considerable expertise. Moreover, luck and timing play vital roles, and a small mishap can lead to big losses even for an experienced day trader. That’s why it pays to learn from experienced, qualified trading experts. If you’re ready to learn from professionals who care about your success as a trader, sign up to… Get the Best Gold Signals in the Industry We are a team of investment professionals who pride ourselves on the quality of trading signals and our services. With our exceptional accuracy rate, we let our results do the talking. Plus, our excellent risk-to-reward ratio ensures safe and consistent profitability for you!
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What are Gold Options?
In simplest terms, gold options refer to option contracts with physical gold or gold futures as the underlying asset. In the US, you can get gold options through the Chicago Mercantile Exchange (CME). Always check with your broker to see if you have access to the relevant markets. An individual with a gold option has the right to keep either a long position or a short position in the underlying futures at the predetermined price. Remember that this is not a compulsion and only a right. Call gold options mean that the holder can buy the metal at a set price before expiration. Put options mean that the holder can sell the metal at a set price and is thus the opposite of a call option. In both cases, keep in mind that the expiration date refers to the market close. Gold options can be slightly complicated to grasp, but don’t fret as in this article we’ll tell you all the basics. Understanding Gold Options and Calls and Puts We learned that gold options are option contracts either having physical gold or futures on physical gold. This contract is a mutual agreement between two parties who facilitate a transaction between a particular quantities of gold. A term we need to know to apprehend regarding option contracts is “strike price”. Such contracts occur within what we call an expiration date”, after which the respected market closes. This is the set and predetermined price that holders buy and sell at. There are two main types of options contracts put options and call options. Let’s have a look at each of them individually: Put Options These allow the holder to sell a certain quantity of gold. It is not an obligation, and one can sell the gold at the strike price until the expiration date. Holders prefer the put option more when the price of gold decreases because, in this way, they can sell the gold at a higher price. If you buy a put option, you have the right but not the obligation to sell the gold. But if you sell a put, you have to purchase it at the set price without any second option. Call Options Bullish traders prefer gold call options. A holder has a right but not the obligation to buy some gold at the set price before the expiration date for call options. In contrast, to put options, a call option becomes more admirable when the price of gold increases as holders can buy at a relatively lower price. Like put options, you can buy and sell a call. If you buy a call, you have the right but not the obligation to do so. But if you sell a call, you most definitely have the sell the gold at the strike price, and you no longer have a choice. Both of these cases are relevant when the person on the other side of the contract demands a delivery within the date of expiry. If a holder decides to not pick either of the four options – call buy or sell, but buy or sell, the contract will be useless. What are Gold Options Used For? We have discussed what gold options are but what is their true purpose? Gold options enable traders and holders to predict and understand the future of gold in a market and calculate the potential risks. Gold options help you understand the on going trend and whether it is upwards or downwards. This might seem confusing as gold is known to be fairly stable. However, short-term fluctuations are still very likely. In any case, short or long-term investment, gold options can help you be more confident in the future of your commodities. How to Buy and Sell Gold Options? Comparing gold options with other forms of gold purchases, we find that gold options are more complicated. This is because you cannot set up a vault or account and immediately begin trading. There is a whole process behind buying and selling gold options. The first step to take when buying gold options is to set up a margin brokerage account. Ensure that the account is set up to work with both gold futures and options, as some brokers do not allow direct contact with gold option markets. Some broker accounts will still have limitations, such as limits on stocks and EFTs. The best thing to do would be to check with your broker and see what it allows and limits to avoid any confusion or frustration later on. Gold Options vs Gold Futures Gold futures are different from gold options in such a way that you do not need a contract in gold futures, and you can invest directly in gold. Pick whichever option you want but below are some prominent advantages of gold options over gold futures: 1. Lesser loss – the terms of gold options outline that you have the right but not the obligation to buy or sell. This gives the trader away to minimize losses because they can only invest in something premium. 2. Extra leverage – a buyer gets added leverage as the payable price is lesser than gold futures. So, gold option positions require a lower margin to open a position in the market. 3. More dynamic – gold options are more dynamic as they can be modified according to your portfolio and choice of strategies. In this way, gold options are more flexible, making it an excellent choice for investors wanting to run their investments in their way. Final Thoughts For beginners and advanced traders, pay attention to gold option markets because they can bring tremendous advantages. We know that the value of gold is kept at a particular price, and it is then bought or sold accordingly. Therefore, always stay up-to-date with the current prices to guide your gold option investments in the right direction. Gold options are significantly more advantageous than gold futures as well, making this an even better candidate to invest
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A beginner guide on trading gold in the US
If you’re looking to trade gold in the New York session, you’ve come to the right place! In this blog post, we will teach you everything you need to know about trading gold during this time period. In this guide, we’ll discuss everything regarding gold trading. So whether you’re a beginner or an experienced trader, this blog post has something for everyone! The different types of gold investments There are many ways to trade gold. These include; buying gold coins, bars, stocks, ETFs, futures contracts, and CFDs. Gold coins are the most popular type of investment, as they offer a tangible asset that can be stored and traded. Bars are popular with investors who want to hold a larger quantity of gold. Investing in exploration and mining stocks may allow traders to make a leveraged trade on gold’s price. ETFs are financial vehicles that trade in the same way that stocks do. They are baskets of firm shares that are exchanged on stock exchanges during the day. CFDs allow traders to bet on gold prices without holding real gold, mining stocks, or financial assets such as ETFs, futures, or options. Through the buying of exchange-traded contracts, traders may speculate on future gold price changes using futures gold trading derivative products. Option contracts are another leveraged approach to trade gold. The trader who purchases the contract can purchase an option contract to sell or buy gold at a later date. Step-by-step guide on how to trade gold Here’s a step-by-step guide on how to trade gold: Finding a Gold broker The first thing you need to do is find a good gold broker. Once you have found a broker, the next thing you need to do is open a gold trading account. You will need to deposit money into your account before you can start. Deposit Funds The amount of money you need to deposit will depend on your broker. Most of the brokers charges a minimum deposit of $250-300. Once you have deposited money into your account, you are ready to start trading gold. Choose a chart and a timeframe The next thing you need to do is find a good gold chart. When you have found a good chart, the next thing you need to do is choose a time frame. The most popular time frames are the hourly, daily, and weekly charts. Identify the trend Once you have chosen a time frame, the next thing you need to do is identify a trend. A trend is simply the direction that the price of gold is moving. Types of trends There are three types of trends – up trends, downtrends, and sideways trends. An up trend is when the price of gold is increasing. A downtrend is when the price of gold is decreasing. A sideways trend is when the price of gold is not moving. Trade Setup Once you have identified a trend, the next thing you need to do is choose a trade setup. A trade setup is a specific price pattern that signals that a trade maybe about to occur. There are many different types of trade setups, but the most popular ones are the pin bar, the engulfing bar, and the double top/bottom. Enter a trade Once you have chosen a trade setup, the next thing you need to do is enter a trade. You can enter a trade by buying gold, or by selling gold. If you buy gold, you will make money if the price of gold goes up. If you sell gold, you will make money if the price of gold goes down. Managing your trade The last thing you need to do is manage your trade. You can do this by setting a stop loss and a take profit. A stop loss is an order that will automatically close your trade if the price of gold goes against you by a certain amount. A take profit is an order that will automatically close your trade if the price of gold goes in your favor by a certain amount. You can also manage your trade manually by closing it yourself when you feel like it. Tips to Make More Money in Gold Trading Gold prices tend to be volatile during the New York trading session. This is because there is a lot of activity and speculation in the market at this time. If you are looking to trade gold, it is important to understand how to take advantage of this volatility. ● One way to trade gold in the New York session is to use a stop-loss order. This is an order that will automatically sell your gold if it falls below a certain price. This can help you protect your profits and avoid losses. ● Another way to trade gold in the New York session is to use a limit order. This is an order that will only buy or sell gold if it reaches a certain price. This can help you get the best possible price for your gold. ● If you are new to trading gold, it is important to start with small orders. This will help you learn how the market works and how to trade gold effectively. ● Once you have a feel for the market, you can start to increase your order sizes. This will help you make more money in the long run. ● When it comes to gold trading, the New York session is one of the most important times to trade. This is because there is a lot of activity and speculation in the market at this time. Final thoughts So there you have it – a few things to keep in mind when trading gold during the New York session. Remember, this is just a starting point – there’s a lot more to learn if you want to become a successful gold trader. But if you keep these tips in mind, you’ll be off to a good start. Happy trading!
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What are the ways to day trade gold?
Gold is one of the oldest currencies, and it has become profoundly ingrained in the consciousness of the financial world. The stat taken inDecember 2019 ranks the top significant financial assets globally by the average trading volume each day. At $145.5 billion, gold is ranked third with the average trading volume in a single day. You may wonder what the reason behind this enormous trade of gold is. The answer has something to do with the phenomenon of gold hedging. Other valuable metals and gold negatively correlated with the assets and bonds depending on the current economic stability. This adds to the perception of the precious metals as asafe way to refuge for the investors. In this guide, we’ll talk about what are some of the ways to day trade gold. What makes gold move? Gold manages to drawthe attention of many people having many interests. Gold bugs collect the physical bullion and invest a significant amount of their assets in the gold stock market and futures. The more substantial percentage of the gold bugs are the retail investors, and a small portion oftheir funds and assets is solely invested in the gold stock and market. Gold bugs offer a constant flow of buying demand when the average prices are lower. As a result, they add substantial liquidity while limiting the low gold futures and stock value. This phenomenon attracts significant and vital hedging activity from institutional investors. The metal assets respond to a small number of different price triggers. And as a gold trader, you must have know-how about these prominent factors. These factors are · Supply and demand · Greed and fear · Inflation and deflation Generally, gold prices change due to economic, political and social unrest. Therefore, gold trading is often known as safe heaven since its price is not necessarily affected by any government policy influence or is not inflated by the interest rates like the shares in the stock market. Therefore gold can serve as insurance for the people who invest in it and liquidate their gold assets. What is gold day trading? Day-trading gold is a speculation on short-term price movements of gold. It all takes place in an electronic environment. The physical gold is not handled and is not taken into possession. Instead, the transactions takeplace, as mentioned earlier, in an electronic environment. Only the profit and loss are reflected and shown in the trading account. Price movement is the key to making a sweet return in the gold trading market for the day traders. In most cases, gold flows in a specific trend in the gold market. The trader’s responsibility is to find these trends and enter the rightful position. There are many ways today trade gold. Some of them include; Futures Gold can be traded incertain different ways. The most common trading practice is the futures contract. A futures contract is an agreement to buy or sell gold in the future; it also implies that there is no need to take the gold’s physical ownership while accepting the gold futures. Day traders close allthe trades daily and gain benefit from the difference in the price between where they bought their gold contract and where they are going to sell it. COMEX is an exchange where all the future gold trades are traded. Gold moves in $0.10 increments in the future trades. The slightest fluctuation in the futurecontracts is referred to as a ‘tick’. The number of ticks the price moves away from the entry price when purchased or sold determines your loss or profit inthe gold trade. The tick value of a standard contract is $10, and a micro contract is $1. The micro gold future(MGC) has a $1 tick value because this contract represents around 10 troy ounces of gold, and 10 ounces multiplied by the tick size is $0.1; the result is $10. The standard gold future (GC) has a $10 tick value and is 10 troy ounces of gold because thiscontract represents around 100 ounces of gold, and 100 ounces multiplied by the tick size is $0.1; the result is $10. The future broker determines how much money is required in the account to start the day trading of a gold futures contract. The intra-day marketis the amount demanded by the broker to open the daily day trade market of the gold futures trade, and it changes from time to time. These values are based on each day’s day trading and closing positions before the market is closed. Day trading through stocks Stock exchange trading funds such as the SPDR Gold Trust (GLD) are another option for the day trading gold. The SPDR gold trust trades at around the tenth percent of the amount of gold. If the trader has a stock trading account, the gold’s price movement can also be traded. As the SPDR trust keeps gold in reserves, the value fluctuates with the gold price. If the gold price futures are trading at $1000, the gold trust will be trading at $100 (as it is 1/10thof the total gold price). Trust is also sold in the same way as stocks. As the minimum cost of movement is $0.01, you lose or win $0.01 for each share you currently hold each time the price changes by a penny. The best time to trade through stocks The day traders who want to gain a maximum profit from the XAU/USD focus on the busiest hours calculated by the significant trading volume. Around 10:00 am – 6:00pm (EST) is when the maximum volume of gold is traded in the market. However, traders should not overlook the events that have a noticeable and significant impact on price swings in the gold trust. Final thoughts While trading gold,there is no calculated or unified profit guaranteed. The entire business plans and trading strategies influence the outcome of the daily trade. The gold day trading has the trading potential to help the trader make a fortune and remember that it is not loss-free trading. It also
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Forex Trading Signals: What You Need to Know About Forex Signals
Forex trading involves the riskiest form of financial market trading, considered among the most speculative. These are risky businesses in their own right, but trading forex adds a higher level of risk and uncertainty. Even so, forex trading is a multi-billion dollar industry and a worldwide phenomenon. The Forex market operates 24 hours a day, five days a week. It’s not just a financial market,but a business that involves the exchange of currency between two different countries. Forex signals, or forex trading signals, are a tool that traders use to get a sense of the current trading environment. Forex signals can help you identify the best time to enter or exit a particular trading position. If you’re just starting out, you may not know much about forex trading. However, with a little research and some exposure to this complex and often confusing market, you can learn to identify the signals that help you make money. This article lists some of the most common forex trading signals that new traders use. What is a Forex Signal? A forex signal is a particular trading tactic that, if followed, can help you make more money. Forex signals are tools that traders use to identify trading opportunities in the Forex market. Forex trading signals are not a sure thing. Rather, they provide a general idea of when you shouldenter or exit a trade based on current market trends or conditions. Forex trading signals are meant to complement your own foresight and intuition. You can get the forex signals from a variety of platforms, depending on what kind of software is used depending on your preference. You can get these forex signals via email, skype, WhatsApp or other similar mobile applications or websites. Forex signals can come from different factors, such as other currency pairs, the price of other commodities, stock prices and bond prices. The best forex signal does not only relay you to sell or to buy, but also provides you with the basic and detailed information on why the described and predicted action is the right one at the moment. Why Use Forex Signals? Forex trading signals can help you in your forex trading. Forex signals can help you identify the best time to enter or exit a particular trading position. Forex signals are based on news-based events and technical analysis or both and these signals help the trader to have a most precise buy or sell decision. A growing number offorex signal technical indicators are available for the traders to study and for identification. If you’re just starting out, you may not know much about forex trading. However, with a little research and some exposure to this complex and often confusing market,y ou can learn to identify the signals that help you make money. This article lists some of the most common forex trading signals that new traders use. How to Use Forex Signals? Forex signals can create sell or buy trades that are either automated or manual.A manual system involves you, sitting on a device, such as a computer or a laptop, looking for the signals and interpreting whether to sell the trade or buy it. An automated trading system allows you to teach the software about what kind of signals to look for and how to interpret them. It is a general observation that a lot of times, the automated system removes the psychological ability of the traders, which is a detrimental factor to a lot of forex traders. These are the tools that help you identify the best time to enter or exit a particular trading position. Now let’s discuss the main point, which is how we can use forex signals for maximum profit and positive output in your investment. Firstly, you have to make sure that you choose a good broker. Experience and reliable brokers use trustworthy platforms, which is the most important point for providing signals in a trustworthy and reliable manner. Next, you have toc hoose a proper forex signal provider. This step is actually the most difficult task than it seems to be, even though there are a high number of choices for the traders to choose from, traders who want to use forex signal providers. This is the most important step because a lot of executing trades are based upon the unreliable signals provided by the provider can result in a massive loss. You are basically putting a lot of faith in the forex signal provider, so make sure you choose a reliable source and provider. You should conduct a detailed research about the available signal providers and make a choice of a provider with a high-reliability factor and reputation. Before settling and making a choice about your provider, learn about the trading strategies and performances. There are quite a number of signal providers that offer, free trial period which you can easily subscribe to at a later stage in case you are pleased with the end result. When it comes to automated strategies provided, you can usually conduct back testing and see how the computer would have devised a strategy according to the various market trends and signals. Also, try to test the forex signal providers on a demo account before risking and using real capital; it would be a wise thing to do. The other factor is to know about the trading platforms that provide high customizing features, which can really make a difference since not all of the signal providers wille nhance your trading experience. A customizable platform will enable you to gain basic strategic measures for trading in forex. Do not forget that trading with the different currency pairs can be long term or short term. Short term signals are used in a single day and in intraday trading, while long term signals are used for several days. Keep in mind, these signals are time-dependent, so make sure that you make use of these signals as soon as you get the chance to use them. Final thoughts Forex
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Is Bitcoin a Substitute For Gold?
An increasing number of people think Bitcoin could eventually replace gold as asafe haven. As big names like Elon Musk invest in Bitcoin, the term digital gold is being usedto characterize cryptocurrencies. But can BTC replace gold? A number of people believe that bitcoin could soon replace gold as safe heaven against the depreciating value of the dollar against gold. This is just speculation, but it is curious to see the exuberance of people regarding bitcoin. Besides the fact that there is a multitude of different digital coins, what’s uniqueabout Bitcoin is that its supply is fixed. Only 21 million bitcoins will ever be created in this industry. There are around 47million millionaires existing in the world; if each of them wanted to have asingle bitcoin, not all of them would be able to acquire a Bitcoin. Thesesupply limitations make Bitcoin a bullish entity. Inthis guide we’ll answer this question. Bitcoin andGold: How do they compare? What’s interesting about gold and Bitcoin is that the supply is fixed. This means theprice is directly linked to demand. This means gold has historically been used as a store of value. As such, it’s seen as a great hedge against inflation. Research has repeatedly proven that gold keeps its value extraordinarily well during recessions. This was especially true during the 2007-2009 financial crisis, when gold’s total performance was 19% and the US equity market plunged 35%. Onthe other hand, Bitcoin has no fixed supply. As such, it’s seen as a good hedge against government policies. For example, many governments want to impose negative interest rates on financialassets. Negative interest rates would make holding traditional financial assets like stocks, bonds, and cash a bad deal. However, Bitcoin is a traditional financial asset. It’s just stored digitally. As such,it doesn’t have to pay interest to anyone. How volatility affects gold and Bitcoin? If you look at the volatility of gold and Bitcoin, you’ll see that the price of Bitcoin is more volatile than the price of gold. This is the red herring of digital assets. Why is Bitcoin more volatile than gold? This is due to the fact that it’s a new asset class. As such, investors are trying to figure out how to invest in it. If you want to invest in gold, you’ve had plenty of time to research it. As such, most investors are going to invest in something that’s less volatile. Gold protects against central bank policies Many people think that gold is a good hedge against central bank policies like negative interest rates. However, this isn’t the case. What you see in the chart above is that the price of gold is linked to economic growth. This is due to demand. As such, it’s not affected by central bank policies. Bitcoinprotects against government abuse Another red herring people have with Bitcoin is that it’s a good substitute for golddue to its protection against government abuse. However, this isn’t the case either. First, governments aren’t the only ones abusing financial assets. As such, you canprotect yourself from this too. When people think about crypto currencies and Bitcoin, they often think about money laundering, financing terrorism, and other immoral activities. As such, this isa red herring. If you can’t trust the government or financial institutions toprotect your money, you don’t need Bitcoin. Can BTC replace gold? Thereare many reasons why BTC can’t replace gold. Here are a few of them: Cryptos aren’t a hedge against inflation Any asset that is prone to significant inflation cannot be considered a good storeof value. Inflation reduces the value of currency when its supply increases, something that happens frequently with crypto currencies since one can create them. The fast growth of crypto pools fundamentally erodes their value. Meanwhile, gold is somehow unaffected by inflation. In fact, its price rises during periods of inflation as investors flock to the precious metal as a safe haven. The overall crypto infrastructure Many cryptocurrencies use blockchain technology, which is a decentralized system that tracks the transaction of digital assets. To meet worldwide demand, Bitcoin relies on off-chain transactions, in which users buy and sell coins outside of the blockchain network, therefore defeating the fundamental purpose of utilizing the technology in the first place. Gold, on the other hand, is a global commodity that can be obtained safely through a number of channels, and in a number of forms. Access to gold does not require a technical backbone, and since it is so well-established, rules have been inplace for a long time to regulate how it is sold, kept, and spent. Gold has been around for ages, outlasting failing fiat currencies and surviving global market disasters, where as cryptocurrency is insecure and in its infancy. When any currency has no fundamental value and exposes people to wild volatility, it will never be as reliable as gold. As a result, although pro-crypto enthusiasts promote it as the new gold, however BTC can’t replace gold. What to look for in 2022? In short, both gold and bitcoin are expected to continue optimistic in the coming year, and there are no signs in the market that either commodity will be phased out very soon. Both gold and bitcoin perform comparable speculative roles but have significantly distinct individual qualities and application cases, making them complementary investments rather than rivals. Although more institutional money is expected to flow into Bitcoin in the coming year, this does not represent an existential danger to gold. It’s more likely that gold and Bitcoin will become tandem hedges, with prices becoming tightly tied. In other words, we appear to be facing a future with two big inflation hedges rather than one. Final thoughts With all of this volatility, we are certainly witnessing a flight to safety, but ifyou are a diversified investor, perhaps you should buy both gold and Bitcoin rather than debate which is better. By focusing on items you can control, such as your portfolio, you may share in profits while limiting your exposure in losses.
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What Drives Gold Prices?
Gold has always attracted the attention of investors because of its unique and important investment properties. It is considered a safe haven during uncertain economic conditions, acts as a store of value and serves as a hedge against inflation. Gold generated a cumulative return of around 360% in the 30-year period from 1990 to 2020. Despite its attractive investment properties, gold price can also be volatile like any other commodity or financial asset. If you want to invest in gold, this article will help you need to understand what drives gold prices and under what circumstances investing in gold is worthwhile. 1- Value of the U.S Dollar Because gold is dollar-denominated, its price is inversely related to the value of the U.S dollar. The inverse relationship between the two means that if the price of the U.S dollar increases, gold prices usually fall and vice versa. When the U.S dollar gets strong, gold prices come under pressure because of the subdued demand. On the other hand, a weaker U.S dollar increases the demand for gold, which tosses prices upward. 2- Industrial Demand Gold is used in different proportions in electronics, memory chips, computers, and has many other industrial applications. As per some estimates, more than 50% of the total gold demand was for jewelry in 2019, with India, the United States, and China being the largest gold jewelry consumers. Naturally, other things equal, if the demand for gold for industrial or ornamental use rises significantly, gold prices would rise. In contrast, other things equal, if demand declines significantly, gold prices would fall. 3- Investment Demand Various gold exchange-traded funds (ETFs), such as SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), are among the largest gold ETFs. They hold large quantities of physical gold from their purchases of different investment instruments. As per some estimates, gold’s use for investment purposes accounts for roughly 30% of the total annual demand. Usually, when the assets under management of these ETFs rise, it prompts funds to purchase more gold that could result in increased demand for gold. In such a scenario, increase in demand can push gold prices upwards, whereas a decline in demand can pull the prices downwards. 4- Economic Conditions During economic uncertainty, recession, and high inflation, investors rush to buy gold to protect their savings from negative effects of inflation. As equities plummet, bond yields decrease, and real estate values plummet, the demand for gold increases as more and more investors buy gold, pushing gold prices up. In other words, gold acts as a safe haven for investors during uncertain and deteriorating economic conditions. Many investors allocate some portion of their investment to gold irrespective of the economic conditions to diversify and stabilize their portfolios. 5- Gold Production China, Russia, South Africa, Peru, the United States, and Australia are among the big gold producers in the world. Apart from the demand side of the equation, gold prices also move in response to supply-side gyrations. Theoretically, higher gold production can lower gold prices whereas low gold production can increase gold prices. With the bulk of gold already mined, it is becoming difficult and costly to mine additional gold. The rising cost of mining new gold is another factor that can contribute to rise in gold prices. 6- Central Bank Reserves Although paper currency is no longer backed by gold, central banks all over the world hold some reserves of gold along with foreign exchange reserves. Central banks of the United States, Germany, and Italy are among the largest holders of gold reserves. The International Monetary Fund also holds one of the largest reserves of gold. A significant increase in gold demand by central banks can increase gold prices if other things remain equal. Some central banks often increase their gold reserves and start buying gold bullion, which can temporarily increase demand for gold and push the prices up. Conclusion Despite numerous advantages of investing in gold, its price can be volatile as different factors influence it. To invest in gold profitably, you need to know the factors that move its price. The value of the U.S dollar, industrial demand, investment demand, economic conditions, gold production, and central bank reserves are some of the major factors that mostly move gold prices. In this article, we looked at these factors in isolation, but in the real-market scenario, multiple factors influence gold prices simultaneously. So, you need to analyze different factors to find out what is actually moving gold prices. Gold has always attracted the attention of investors because of its unique and important investment properties. It is considered a safe haven during uncertain economic conditions, acts as a store of value and serves as a hedge against inflation. Gold generated a cumulative return of around 360% in the 30-year period from 1990 to 2020. Despite its attractive investment properties, gold price can also be volatile like any other commodity or financial asset.
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