How to trade gold? if you’ve ever wondered how this precious metal moves and shakes, the good news is that making a buck or two from it might not be as tricky as you might think! In our “before and after” video below, we will show you exactly how we identified a high probability sell opportunity on the weekly chart (October 2015), managed it and, most importantly, exited the trade.
Once they cut their teeth on our training material, many Lazy Traders soon discover that we trade all instruments in the same trading style. This is thanks to the universal story price action tells us… across all asset classes!
This is why we trade currencies, stocks and commodities in the same manner – we trade according to what the chart is telling us, not what we might think externally!
We knew how to trade gold. That was easy…
…Why? Because we would have traded the set-up revealed to us on the chart in exactly the same way regardless of what the asset class was! Our trend-based sell opportunity to “sell the rally” in a bear market meant that we had a high probability outcome. If we had a pullback in a down-trend and our price-action based set-up of an inside bar rejecting a previously tested 50ema had occurred on GBPUSD, Motorola or, say, Copper, we would have employed exactly the same selection and management techniques. Yes, we like to keep things simple!
Thanks to focusing our trading on the daily and weekly charts, our trading only takes a few minutes a day!
The “sell the rally” trade set-up on Gold was identified on the weekly chart after the 26th October 2015. Our sell orders were then placed below the low of the week represented by the inside bar with a stoploss above its high.
Our order was triggered after the proverbial bear fell out of the window and it only took three weeks for our “take profit 1” level to be hit once the market reached the previous swing low. It was at this point where we scaled out half of the position which allowed us to bank half of our rolling profit, leaving the remaining portion to run in anticipation of the formation of a lower swing low. We then continued to trail our protective stop above the high of every seller bar until we were stopped out.
Imagine a trading style that allows you to trade from as little as minutes a day – one which works universally on currencies, indices and commodities on just one timeframe?
That’s trading price action in the way of The Lazy Trader – keeping things simple and effortless but a big profit potential in mind, regardless of what the news or what the pundits say.
Our How to Trade Gold sell trade (video above) is just one of many examples of how we can universally apply the same set of rules to identify opportunities and ultimately profit from them.