Forex gold market: forecast of analysts

covid 4 300x200 - Forex gold market: forecast of analysts

Today, the investment market is a popular option for earning money. For this reason, many users are actively starting their trading career.

In the first successful deal, beginners begin to absorb information about how to save their profit in case of asset rate volatility.

Willingly, users come across the concepts of “stop loss” and “take profit”. After that, the probability of profit loss is minimized to the set limits.

Stop Loss is an order, which the brokerage company receives from the trader, aimed at closing the trade when the asset’s value reaches its extremes. This instruction helps the trader to minimize cash losses when the mark is exceeded.

Take Profit, in turn, is an application aimed at making profit, provided that the asset is close to the level specified by the trader. Traders wishing to automatically mark SL and TP can use the system Quik.

We’ll find out how to put a stop loss in a quick. To do this, run the program, select the “Stop order” tab and specify the desired parameters. Understand how to put a stop loss in Quik is important, because gold trading is low volatile and highly liquid. Pending orders allow you to clearly control the market and make a profit with minimal risk.

Forex Market Analytics for today

On the agenda, the Fed’s decision on the interest rate is expected. Many experts believe that the discount rate will be reduced to 2 – 2.25% per annum. Also, experts call this move a “precautionary measure” to reduce downward risks.

Such a decision will lead to a decline in the U.S. dollar and rather ambiguous prospects for further economic development.

On the other hand, this decision can strengthen the position of the euro. However, lowering the rates is a very prosaic response to the community that the state of the world economic crisis is sad and far from over.

Analytics predicts a decline in the value of gold assets. To date, the spot price of gold is 1428 U.S. dollars per ounce. It is worth expecting a fall in the value of the precious metal to 1405 U.S. dollars. Also, there is a high probability that the exchange rate will fall to the level of 1380 USD.

Forex earnings strategy

We develop Forex strategies. This refers to a specific trading method, which is usually only one aspect of a complete trading plan. A consistent Forex trading strategy provides profitable entry signals, but it is also important to consider:

  • position size;
  • risk management;
  • Opportunity to exit the deal.

When it comes to discussing the most profitable Forex trading strategy, there is no single answer. The reason for this is the trader’s individual needs.

Development of a suitable own strategy will be most successful when taking into account all personal qualities of a trader. Even the legendary Golden Grail will be an investment disaster for someone. Because not everyone can properly implement the rules of this strategy.

At the contrary, a strategy underestimated by others can be quite appropriate for someone. Thus, it will take time for research to detect Forex trading strategies that work on a case-by-case basis.

One of the main aspects of trading is the time frame of one’s own trading style.

There are several types of trading strategies from short timeframes to long ones. Let’s read more about them.

ScalpingHighly profitable variant of trading. However, it refers to short-term. Trying to quickly overcome the spread between bid and offer, trying to get a few points of profit before closing.
Day tradingTransactions that are completed before the end of the day. Eliminates the possibility of a negative impact of minor volatility. Daily trading strategies are usually ideal for beginners.
They refer to a long-term type of transaction. Price bars on charts can usually be set for one or two minutes.
Swing – tradeAssets held for a number of days when investors seek to benefit from short-term pricing models. Swing – the trader usually looks at bars every half hour or hour.
Position tradingRefers to the long-term version of the strategy. The desire to increase profits from significant price changes.
The investor usually looks at the charts before the end of the day. This option requires a great deal of patience and self-discipline. Also, such a strategy will suit a thoroughly prepared trader.

The selected timeframe largely depends on the further strategy building. You can use the ready-made model as a basis or try to develop your own unique algorithm.

Gold tends to move upward and slump sharply. As a result, swinging strategies and positional trading campaigns will bring more profit.