Hi Everyone, I am starting this thread as an open discussion board, on how you day-trade our little yellow friend--GOLD Remember: We are battling not only economic, and political forced (intraday), but also central-bank traders who are buying and sell gold for their own reverses! As a former derivatives trader, here is a little insight into my trading program: 1) I attempt to scalp the YG gold contract intraday; looking for 5-6 ticks MAX in my favor (sometimes I might ride a trend longer though). 2) I use IB for the platform ($2 each way!). 3) I watch the equity markets, and oil markets (equities down, oil up = bullish for gold, equities up, oil up = bullish for gold, equities down, oil down = bullish for gold..etc) 4) I am still working on a stop loss system. Right now I am looking at nijina traders systems, with a 5-6 tick stop against me (those $8 gap moves killed me on Friday) What other indicators do you watch, and how do you view their affects on the gold market Other general thoughts are most welcome PW
I'm a reverse momentum scalper. When I see an extreme move in one direction start to slow down I fade it. If I'm wrong, I get out asap. I usually make 150-200 RT a day.
I think PFW forgot to add equities down, gold down = bullish for gold oil down, gold down = bullish for gold
I am going to give away a profound trading secret, but please keep it to yourself. If you are using TA, then trading gold is the same as trading any other market on any time frame. S&R. indicators, trendlines, candles, volume etc. all the same. You can add in different correlations, but you don't need 'em.
be careful shorting anything gold, in my opinion all pullback from now till late summer are buying opportunities