Gold is regarded as a safe haven asset. This means that it retains its value even during an economic downturn. This said, it provides traders and investors the opportunity to diversify their investment portfolio.
If you have been exposed to trading Forex for a while, you would know by now that trading gold is now possible without having to shell out a large amount of money from your pocket. Now, investing in gold is more accessible thanks to top ECN brokers offering gold ECN trading with affordable trading conditions suitable for all levels of traders – beginner, intermediate, or advanced.
As mentioned, if you feel like diversifying your portfolio, it’s logical to include gold trading in your options. We are going to put up a few tips in this blog on how to start entering gold trading.
Trade Gold with the a Reputable Broker
Previously, you can only trade gold physically. But with advanced technology, you can now buy and sell this precious metal online. And thanks to a long list of Forex brokers which have opened the door for traders with a tight budget, it’s even made more possible.
Most brokers, if not all, are offering gold trading aside from their usual Forex trading. To kickstart your gold trading journey, you will need to find a Forex broker which is able to provide you high quality services. This includes affordable yet safe trading conditions, fast execution of trades, and a decent trading platform.
With so many brokers available on the market, you could find yourself confused or overwhelmed. To make this task less complicated, you can start with identifying if the broker you have your eyes on is regulated by reputable regulatory authorities like the FCA and ASIC.
Keep Yourself Updated on Gold Prices
Just like trading Forex, gold trading requires a lot of analysis of the market. If you want to be a successful gold trade, you have to invest time and effort in monitoring gold prices and what’s happening around the gold market as a whole. Forex brokers typically provide their clients free analysis and forecasts about gold to aid them in their trading journey.
Some of the factors that you have to watch out for include demand for gold, equities market, interest rates, and geopolitics. These indicators move the gold market, so keep yourself updated in order to make sound trading strategies.
Make Your Own Gold Trading Plan
When trading gold, both technical analysis and fundamental analysis are quite useful. With fundamental analysis, you are able to have an understanding of the current status of gold and the market as a whole with useful economic data. As stated earlier, Forex brokers provide free gold market analysis and forecasts, so take advantage of these.
On the other hand technical analysis can be used to determine potential entry and exit points. This type of analysis involves the use of technical indicators and chart patterns. Trading platforms offered by Forex companies have built-in technical indicators, so you don’t have to worry about this.
Again, the broker of your choice will play a significant role in your trading success. Make sure that they offer the features mentioned above.
Meanwhile, technical analysis is useful for defining potential levels of entry and exit. It includes the analysis of markets through the use of market action, chart patterns and technical indicators.
Wise Gold investment
Investing in gold makes sense if you want to expand your investment portfolio. If you are someone already an established Forex trader, you could explore and discover the wonders of gold trading for further wealth creation. Now if you are fairly new to the world of online trading, you will have to learn all that you can to find success in this endeavor. We’re lucky that today, information is just a Google away.
Furthermore, Forex brokers are generous in providing free educational materials to their new and existing clients. Again, when choosing a broker to trade with, make sure that it’s regulated and offers competitive trading conditions. Beware of brokers offering too good to be true claims, like the ones you see on social media platforms and advertisements. You could ask for recommendations from real traders, or go to Forex brokers review sites to read online reviews.