Hi I have been trading gold for the past year and I find that I have been pretty successful in predicting short term price movements during volatile sessions like at NY open. The thing with trading gold is that although i am able to trade with the trend, I find that i get out too early. As gold fluctuates A LOT, sometimes i get the signal to get out rather than stay in the trade. And whenever I get out, the trade goes in my direction. i have a steady win record, but my losses due to get out too early to ride the trend sometimes wipe out four to five profitable trades I previously made. I don't know how I can prevent this, any suggestions of indicator that may help me? Main problem: staying in the trade longer, before getting out with false signals
It helps if you have a fundamental view where the price will be 5 years from now...then you don't need tight stops.
i am a really short term trade, so i rarely place emphasis on the 5 year span. I trade in the 1 minute interval for gold. and in that one minute man, price can literally fluctuate one or more dollar....how can i place a reasonable stop loss. trading gold is so fun but its SO VOLATILE.
1) Your risk tolerance is less than the volatility of the market. 2) You will need to have wider stop-losses or reduce your position size. 3) With shorter term trading, you have to work "harder" to accumulate profit compared to a longer-term trader who can merely sit on a position and let it run.