Gold Trading Edge

Discussion in 'Commodity Futures' started by gerryhoho, Oct 15, 2009.

  1. Hi guys just a little question to ask.... I am currently trading gold, I mean I make money in gold from time to time..... but I dun have a clear strategy to trade with.... I would like to research something abt gold trading edge. Hope you guys will kindly give me some ideas where i should start with.

    Tks dude!!!
  2. Pls take I look how I traded in Sept, this is the first time I trade gold. I would like to design something with good logic and use it to trade gold. I am sincere and hope you guys can kindly point out one or two thing tat can start me off thinking.

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  3. Depends on whether you want longterm or short term trading. Day trading, you should probably spend lot of time looking how the price works (price action), but it will take a lot of effort.

    There are hundreds of ways to lose, that are readily available. But very profitable? Beware of everyone who has something to sell you.
  4. I noticed one trend with gold. If you compare the daytime trading price with the nighttime price, you'll see over the last few years, it will go up slightly on average during the day and on average it will go down during the night. (eastern standard time)

    I'm guessing that what's happening is that the United States is slowly selling off it's gold and it is being bought by Aisia. The Americans are doing most of their selling during their daytime hours and the Asians are buying during their daytime.

    I can't remember the exact numbers but I think the average increase each night was around 0.2% and the decrease each day was around the same. I would expect this trend would continue for years as the US has a lot of gold that it can sell to Asia. If the average gain is more than your trading cost, you could go long every night and sell every morning. Perhaps there are other daily trends that you could combine the strategy with.
  5. doubt it is that simple, especially after commissions, fees, risk, and everything else. Things that look true in the past rarely profit into the future. There are $10 billion financial institutions that scrape through every arb possibility, including time of day, open, close, international, cross exchanges, etc.
  6. I prefer day trade to short term trading, wat is gold most related to.... US dollar?!?! So should i be looking at the trend of the US index in order to trade gold??? Anything tat can be use as a indicator tat gives a good sign of direction to gold??

    Like the ES u can usd AD issues... AD volumns of DJI and NQ to trade the ES... so would I possibly to do the same when trading gold?~?
  7. look ... kid ... its simple ... buy low and sell high

  8. Think it terms of which will out perform in the long run. A fiat currency or a global currency? I betting on the tangible metal. Does buy and hold still work? You bet it does when countries debase their monetary system.
  9. Don't forget that tangibles over the millenia have also included cows' teeth and cowrie shells. I'm currently investing in .357 magnum cartridges.
    #10     Oct 22, 2009