Gold Trading for Beginners: How to Build Your Gold Trading Strategy
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- Опубліковано 11 лип 2024
- In this video we’re going to talk about gold trading for beginners and how you can build your own gold trading strategy. But let’s start with a bit of history to better understand gold.
Gold has been traded since the dawn of civilization and there is even data about how much it cost in 30 B.C., when it was used in Roman coins. It’s revaluations even caused hyperinflation for a time!
It was also a mainstay in the British Empire, as well as the United States in the previous two centuries.
Nowadays we have online trading without people touching or even seeing actual gold but it has definitely kept an important place and role in modern times.
Everyone with online access and money to trade or invest can potentially trade gold or its derivatives. That’s why we think it’s important to help beginner investors and traders understand how and what causes gold prices to go up or down.
Let’s start with the steps for creating your gold trading plan.
First comes analysing the chart. At this stage you have to determine what the trend is and if you’re trading in a volatile period.
Day traders can use the 5 and 30 minute charts, but you should always look at the one hour and daily charts to see what the larger trend is. With this you can determine whether you want to open a buy or sell position.
The second part is determining the three different price levels for your trade. Number one here is finding the price at which you’re willing to open a position. Number 2 is the level at which you’re willing to take profits. And number three is a level to stop your losses. Always have these set in advance to manage your risk.
To help you determine these three levels you can identify the nearest support and resistance levels. You can either look at historical levels that were previously visited, or you can use various trading indicators like moving averages or Fibonacci.
These three components are part of technical analysis, something we often use on this channel to understand charts. But we also look at so-called fundamentals, the driving forces behind the change in price.
The U.S. dollar is one such force. As gold is denominated in dollars, any rise or drop in the world’s most popular currency is immediately reflected in gold.
Gold prices tend to increase when the dollar is sold. That is because, in relative terms, gold becomes more expensive. And vice versa, gold tends to decrease when the dollar is bought, because it becomes cheaper.
The fifth thing you should keep in mind when trading gold are interest rates, or “real interest rates”, to be more precise.
Gold has a correlation with them, with prices rising when interest rates go down and prices dropping when interest rates rise. Real interests rates are calculated by subtracting the inflation rate from the nominal interest rate. This way you get a percentage gain that is adjusted for inflation.
Historically, gold prices go down when the real interest rate is below 1%. So by watching the interest rates of the FED and other central banks across the world, you can find buying and selling opportunities, especially if you’re trading long-term positions.
And talking of central banks, our next tip for gold trading is also related to them. Central banks are some of the largest players on the global gold market, as they buy and sell the precious metal all the time.
When central banks start buying more gold, that usually causes its price to increase, at least in the short term. And if gold prices then form an uptrend, then that could be an opportunity worth following.
Another thing you should keep an eye on is gold production and how the stocks of gold mining companies perform.
Their work and stock prices reflect how much gold is being mined and added into the system. The remaining gold in the ground is limited and expensive to extract, but increasing demand and a rising price might provide funds for these companies to keep digging and getting more of it in the hands of investors, banks and industries.
Major events often have an impact on the price of gold and push investors to buy or sell it. Armed conflicts, elections, referendums and pandemics almost always push investors to buy or sell gold for one reason or another.
Keeping an eye on the largest events and especially those that don’t go as expected by the markets, is always beneficial for those trading gold.
Thanks for watching this video for gold trading, let us know if you have any questions in the comments and make sure to share this video with someone who might benefit from it.
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I am interested in gold
How to get involved
Which books should I read to learn bullion trading?
@@judithcamarena7714 jii
Love Gold trading 🤩🤩... great Video David.
Glad you enjoyed it and thanks for the comment.
Another beneficial video. Thank you!
My pleasure!
Great video clear and great explanation thank you
Glad it was helpful!
Very informative Video, Thank You
Another great video. I was wondering if you have a video where you show how you hedge ones portfolio in case of a crash? Do you use for example TQQQ/SQQQ or any inverse ETFs. Thank you!!!
Thank you for your suggestion and we will think about making a video about hedging a portfolio. Usually Gold and cryptocurrencies are seen as a hedge against economic havoc and rising inflation. I don't use these ETFs, do you want to share with me what you know about them?
Thank you! great information!
Glad it was helpful! Our pleasure
Thanks a lot for these videos. I'm relatively new to trading... I'm yet to start trading Gold. Tested with silver took two hits and backed off for now... 😂 Brent oil and natural gas have been my best friends 😁😁. Been taking large profits from those.
That was funny, I would like you to join crypto currency. Its taking over the world of investment.
Hey@bob am new to trading. any tips on brent oil and gas
Congrats on your successful investments. Even the best traders in the world take hits sometimes. What is your view on Gold price?
@@Capitaltrading Still not in gold! I decided to stick with the markets that give me profits. Brent oil still doing great. 👍
@@charlesbanda7714 It really is difficult for me to give financial advice to anyone. I've been long every time Brent oil dipped. Took profits every time I made like 2x - 3x what I stake. Today's news from OPEC just gave me more gains.
But I honestly don't know how the markets will react when the supply is increased. When the supply increases and I buy the dip... That will be a bummer. So I just try to keep up to speed with the news on oil. That's it!
Well explained. God bless you.
I love videos like this. Would you consider doing a similar one for Bitcoin? Thanks.
Could be a nice video actually. Yeah, including it in the longlist of topics. Can't say exactly when we'll reach it but would be interesting to make.
What is the symbol for Gold traded on TD Ameritrade and do you know how much the minimum to trade Gold online. Thanks. Beginner
thanks for your update....
I want to push back one one point: Gold is unlike all other commodities in that almost all the gold ever mined is still available for consumption. It's either in jewelry, coins, bars, small percentages in computer chips and other electronics, etc. Therefore, newly mined gold only adds 2% or so to the total real supply and thus is not a significant factor in the price. ie. if the price goes to $3,000/oz, it won't bring on much more new mined supply, but will bring out a lot of old coins and bars on the market.
Even for silver, some of it is lost to landfills over time because it's not economical to recover some of it. For copper, it's a bigger loss, for iron/steel, even more. Oil and gas and corn is totally consumed.
Thank you for your comment we find it very informative. I agree the discovery of a new gold mine increases the local supply of gold, but does not affect real outputs in the short run. Thus, an increase in gold supply raises domestic prices and could boost inflation. I think I disagree here, higher Gold prices is likely to encourage more new mined supply to the market. Where do you see Gold price in 2021?
@@Capitaltrading Actually, I don't think we disagree. An increased price of gold will raise output from mines - agreed. For one thing, a price of $3k turns what was once waste rock ( at $2k ) into "ore" that can/will be processed into new metal. My contention is that it doesn't matter how much existing mines increase their production or how many new mines are opened, the new mine supply is INSIGNIFICANT next to "old mine production" -- coins/bars in the hands of the "public" ( where "public" is anyone sitting on coins/bars from last year or 100 years ago . . . ). It's not like, say, copper or oil where pretty much ALL the market supply is new, fresh production and the fresh stuff suppresses the price. . . . Silver has its own supply issues, but they are different. There is a lot of old supply ( nothing like gold ), but most new mined production is as a byproduct and not from primary mine production so increasing prices ( $30 / $40 / $50? ) doesn't effect supply much at all. Interestingly, it doesn't effect demand much at all either. Each use of silver uses so little of it that the user will pay whatever the price IS in order to get it.
My take on 2021 gold price? OK, you asked . . . ( you know that opinions are like rectal orifices . . . ) Gold will finish the year substantially higher than the previous record price of about $2,100. It MIGHT get to $3k this year, but might finish at $2.5k. It needs to shake out as many people as possible first. The Hulbert Ratings sentiment is below -30% as of yesterday. Many are looking for $1,500 or 1,400 gold coming up. I doubt it, but don't care. The CCP virus has ensured HUGE deficit spending around the world with huge ramp-up in debt. Gold's NOT an inflation hedge, but it WILL revert to the mean ( and over and under . . . ).
Plz I need someone to put me how to trade gold ......I am tired of wasting my account Everytime
@@adeyemiadetunji7744 Start by going into ANY coin store and just buying a fractional gold coin ( ie 1/20th or 1/10th oz ). Any long-time trader has both gained & lost money on gold. .. Your turn. ....
At
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Thanks! Stay safe over there!
Thank you, I will, you too!
Thanks sir.. good information
You're very welcome!
Great information sir
Hi, Can someone explain is Gold Trading is just like Forex where Transaction in Gold takes place rather than just betting on it's price. Because all my strategies works in XAU/USD but then I think (As I've heard) that if in MT4, Gold is CFD and people are only taking contracts between them then what causes prices to move, Without actual buying and selling of Gold, How it's price moves perfectly with strategies like someone is buying and selling it through seeing charts.
Sorry for a long question but still I can't exactly explain what I'm trying to ask... But please help...
Hi Junaid - one way to explain CFDs is that they mirror the real price of gold. The buying and selling of real gold is done elsewhere, on metal exchanges, between banks, funds, companies and individuals. The price they generate is then taken and attached to the CFDs people trade online, without any physical gold being involved.
Best 6 minutes my life ❤
this vedio is really help full .i am trading gold in domestic market how can i batter understand the trends ..
You can watch the rest of our trading videos for beginners.. there are loads in this channel.
Thanks David
You're welcome!
Informative
Thanks for sharing this video. Appreciate it if you could share the links to the influence points you mentioned in the video, please. Like if we would like to check the interest rate, inflation rate, bounds current status please? I mean which website we should refer to for these stats plz ?
how do i start gold trading what do i have to do for it and how it can be a great investment for me
Hi David
Thanks again. Always enjoy your videos. One question. My son lives in WI USA, would he be able to use the Capital One platform over in the USA.
Thanks Colin
Hey Colin, apologies for replying a bit late. Unfortunately we can't accept clients from the US right now. But still happy if our UA-cam channel is helpful if he's learning to trade gold (or if he's a bit more advanced).
Kindly recommend Top 5 Gold Trading Platforms one can trade in today...
are we at a bottom ? loved the video
Always trade in when US Uk market session intersects. That’s my simple strategy to make good profit.
Could you also tell the time period?
@@thickkuro8507 6pm-8pm GMT +45
@@mohanaryal677 please let me know the meaning of +45
Amazing video . Can you do one on US30?
Thank you for your suggestion, we will consider it
Thanks for this valuable content 🙏 , and I have a query for David sir , I have practiced trade on demo account for 5 months now from last 2 days I am trading on live account , and my loses to profit ratio is 1:12 .
What will you say about this is this a good start ??
Begginers luck, write another comment bin 6 months
@@dejansegan4732
Be nice to people.
Bec. You have losses and he dont have.
Maybe he better to find buy and sell position then you are.
Yes its good.
As long you earn more than you lose you are on the right track.
@@Dennisjorgensen1234 So, my profit loss ratio in last two days is 5:0, but my account is overrall in loss. Wait 6 months...Again it wasn't rude it was honest. Let's assume that you follow Davids advices, 5% risk for every trade, 12/1 ratio means 55% in two days (just take 5% profit but if you listen to David at least 110% profit). In six months world will be without money. Mathematics...Again I wasn't rude just honest. And congratulations, good work but be very careful. Easy comes easy goes👍
Nice 👌🏾
Kindly suggest me a good source where I can get the real time price fluctuation of gold in the national and the international market. I am from India. Thanks
Tradingview
beneficial video. Thank you!
Where and on what platform I can trade gold daily
Good morning
Which is best book for gold trading please suggest me
This book could be useful to learn more about trading gold: www.amazon.com/Gold-Trading-Boot-Camp-Commodities/dp/0471728004
nice video sir
thanks and welcome
Should we trade if market price is 1738 and it shows that in near future it may come to 1728.. and another scenario if it shows price will come to 1755
Thats insane, now one ounce Costs 2.3k
A lot of things I need to know and need to learn. I had to play three times to understand a thing. This is my first time knowing these things existed.
Great info once again, but I’d say the British empire was built on a good old cup of Tea lol. 😂👍🏻
And two sugars 😉
Milk? Not English, but as I remember line from the movie "It is so uncivilised tea without milk, don't you think so?"
@@dejansegan4732 As an English gentleman I prefer 1 sugar with milk, but lately I prefer Japanese Matcha 🍵 it makes me think clearly before trading gold. 😉👍🏻
Love your Songs Jemmy Swaggart
Tell the procedure of day trading gold
Is it safe to trade gold? Like I see you can hold it forever until it is profitable to sell, unlike binary, excuse noob question I just created account today :)
No worries, yes you can hold an investment including Gold for as long as you want to make profits. Gold is an inflation hedge so it's quite useful to hold it in a portfolio. Are you buying physical Gold or CFD contract?
@@Capitaltrading Thank you for answering im glad to know that, Im not sure sir because I did it on IQ Option, just went to "commodities" or in my case "Materias Primas" in spanish, and invested 30 dollars in gold, put automatic close when profit is 15%, I guessing it is CFD?
How much money need for gold trading
what's the best trading platform for gold?
Have you gotten one?
Etoro
This video is about gold . But value of diamond 💎
Gold 💯
👑 It's worth holding definitely
Please can you take me on a class to study charts i really need it🙏
You can watch our videos for beginners, they are very good at learning basics, trading tips and behaviors.
Gold, always believe in your soul :-)
You're indestructtttibbbblllleeeeee
Good
Insightful !!
ASX200 PREDICTIONS PLEASE
Thank you for your comment, we will think about it in some of our next videos
How can I start trading gold
How to open my account for trading
Where can I start trading using my gold
ANY coin store.
Isn't gold's cotation going up when interest rate goes down?🤔
Yes, he is saying that @ min 3:00
When interest rates go up, that means the economy needs to be slowed down and inflation curbs. This move is usually positive for Gold and tends to support its price
Is gold trading apps is a good place to start trading gold for beginners and how would I set that up?
You can start trading on any broker app you want.. you just need to download it from your app store
Please confirm, if any of you want to block the tickets together..
What do you mean by that?
Take the opportunity to buy gold before the next rise for these reasons ... As soon most Arab and Asian countries will not allow the trading of digital and cryptocurrencies except with guarantees that their investors will be compensated unless there are reserves of gold with the competent official authorities in each country .. It is very likely that gold will rise It could be up to $5,000 per ounce or more. ...and no other factors will change it
I think it will continue to be shadowed by cryptos.. they are not looking to cut gains any time soon, in fact they are only projected to keep rising in the years to come. So Gold could be struggling to make substantial profits for investors. It is a good value holder though in the long-run
Great video
🌼gold full drop what time
N E V E R
Sir I am new . From Pakistan . I am justified from technical. I want to be expert in fundamental. I am not student of economics. Please guide me . What is my first and last step . You're obediently. I hope you will guide me
Fundamental analysis means examining related economic and financial factors that might affect the price of an instrument like Gold. Please watch our video to find out more about Gold trading for beginners and some tips if you are new to fundamentals.
🤔
How is bitcoin trade going david
Oh yeah you gotta to see the favourable rise in profit trading bitcoin
This will be the best time to invest in bitcoin based on current status.
I have been making a lot through bitcoin trading which has been the main source of my income
@@susankankare8625 I have been thinking of moving to bitcoin. But I don't know how to trade. Please can you help me trade?
@@al-karimhameed3396 Actually an expert broker handles my bitcoin investments while I invest in some real estate with the profit I make
Are you the T212 guy, because you sound familiar.
I just got into bitcoin trading and I made my first profits,which I knew about this earlier
For real bitcoin is a life changing business
@@contrerasatkinson2605 EXACTLY..the world is now aware of bitcoin 🤔
Investing in bitcoin now should be at the top of every wise individuals list
@@sophiechristine8094
You are right the market is profiting if you are really a good broker or account manager 😄😄
Bitcoin is the future it's really a big chance to make money
i don't trade gold. i stockpile and hoard it.
Yes this is another way some long term investors prefer
My bad experience and perspective about FX has changed after investing under Eden Lucien. Watched couple of videos on different channels, try demos account but I was still losing until I was referred to Eden. I’m happy I gave a try. With Eden, Newbie like you and I have a chance of making good profit.
Account got closed today in gold trading
Do you trade forex?
@@forexcoininvestment4652 yes
as a beginner, i didnt understand anything!!
Amateur Hour
Why do you think so?
DOWN to 1700 soon 👍
Can you specify any reason about this prediction ??
@@surajsinghchauhan4766
Im more to $2300
@@Dennisjorgensen1234 that wonderful the gold will be going up in 2021 and there talking about it reaching $4000 👍🏻👍🏻👍🏻
@@melodyocampo227 yes or $5000
@@Dennisjorgensen1234 I so agree 👍🏻
MIF OPM. Shares, warrants, or options? It's a minefield in these much troubled times.
Remember this, the super wealthy traders, need YOUR money now. O.o