Gold Trading Strategies
Contrary to what some people think, acting merely on gut feeling is not a sound approach when it comes to business and investment decisions.
Gold arouses deeper passion – some might say more intense fever – than any other tradable asset. As is the case with other assets, like stocks, currency pairs, and commodities, it is vital to keep a cool head, keep learning, and to stay up-to-date on all the latest news affecting relevant countries, economies, and industries.
Because of Gold’s traditional role as a safe haven asset, it’s especially important to see how its value fluctuates in relation to other assets, such as key currency pairs, while using a reliable platform operated by a reputable CFD online broker.
Developing Your Strategy
Practically every trader has the same goal: to make money, but what sets successful investors apart is the strength of their developed strategies.
New traders, who enter a specific market without a clear plan will almost inevitably struggle, putting a large part of their capital at risk. A good combination of technical analysis (identifying and interpreting patterns on price charts) and fundamental analysis (applying detailed real-world knowledge to trading) is often the best way of achieving a healthy return on Gold.
The Difference Between Buying Gold and Investing in Futures
Gold futures are contracts by which both parties agree to buy or sell Gold at a set date in the future.
When a buy contract is concluded and the price has since dropped, the buyer loses money. On the other hand, if a sale contract has been concluded, then a decrease in the value of Gold will be profitable for the seller.
The main difference between trading assets like stocks or commodities, and trading futures is that an actual piece of the company in question is purchased when a trader purchases a stock. Futures are merely contracts, representing an obligation to buy or sell in the future.
Gold futures are not typically offered by online trading services, but the yellow metal is still one of the most popular and widely traded assets in the industry.
Opening a Trading Account to Buy Gold CFDs
Many CFD online brokers offer trading opportunities on Gold CFDs. A contract for difference is an agreement between two parties, typically described as a buyer and a seller, or an investor and a CFD provider. The agreement is for one party to pay the other at the end of a certain period, according to the change in the price of an underlying asset. CFDs are financial derivatives, letting investors easily capitalise when rates go up (go long) or when they go down (go short).
Trading Gold CFDs is widely considered to be one of the best Gold trading strategies.
UFX is a service provider standing head and shoulders above the competition. If you’re intending to trade Gold, this is the first online CFD broker you should look into, due to its unique MassInsights technology, proprietary trading platforms and apps, competitive spreads, bonuses, features, and resources.