One of my close friends has been in forex trading for years. Recently, he turned his 5K account into a 30K account within a month or two with his simple gold trading strategy. That’s 5x profit in a month or two on forex.
You can trade on many commodities, some profitable cryptos, and Bitcoin. But he trades on Gold and many other currency pairs. Until he sticks to the strategy he makes some handsome money. Once he leaves it, he is always at a risk.
As he shares everything with me, I unconsciously got involved in Gold trading. For a while, when he started convincing me to start Forex trading, I got emotionally attached to it without investing anything.
Curiosity belongs to me, so I started exploring it thoroughly.
As I was a beginner, I didn’t wish to put money at risk. Sooner I realized that there is a pretty simple gold trading strategy if someone follows he will never be at a loss. In research, I found that many experts have recommended the same strategy.
The only problem with the strategy is that it requires patience. If you easily get emotional for your money, you might not win in the end. On the other hand, if you can wait for a while, and have patience, surely this will be a life-changing gold trading strategy.
Let’s disclose the guaranteed profitable gold trading strategy. But before that let me be clear that this is not financial advice. You should spend time learning it on a demo account before you start working on it.
Understand the Gold price movement first
Charts never lie. Looking at the following charts will tell the actual Gold movement. We will see charts at different levels and will learn a few important key lessons.
The key points will lead us to believe in the strategy.
5-year movement and the key learnings
Here is the 5 years Gold prices chart.
Green candles mean upward movement, and red candles show the downward movement of gold price.
If you focus on the chart on a bigger scale, you can see that it’s always in an upward direction. It was trading in the $1000 to $1300 range years ago. It’s now trading in the $1680 to $1920 range these days.
The spikes were due to the expected war. Whenever there is a war, it always goes up, and faster.
So here are two key points we have learned in the yearly price chart.
- Gold’s price is naturally moving up on a bigger scale.
- Gold’s price increases if there is a war on earth (especially among well-known countries).
Weekly chart and the key learnings
Now let’s look at the weekly graph. Focus on the last two years’ chart from May 2020 to May 2022.
If you notice on a bit smaller level, you see that it’s not going anywhere. It’s trading in a range. It goes up and comes down. It keeps dancing. In the last two years, it didn’t go anywhere. It’s again coming back to touch its initial point.
Also, if there are a few weeks up, the other weeks will be down.
Here are the key points.
- Gold price never goes in one direction.
- It trades in a range for the long term.
Now let’s look at the third and last chart.
4H chart and the key learnings
It’s the 4H chart. Every candle means what price has done in 4 hours.
Now, look at the 4H chart. You will see it’s in the downward direction. Still, it moves up and down regularly. Every six candles mean one working day, and 30 candles make a week.
Here is the key point.
- Gold price keeps dancing on a smaller range
Key learnings from all gold movements
If we recap all the key points, we can now say.
- Gold price is upward on a yearly scale (5-year chart)
- It moves in an almost 300 dollars range. (Weekly chart)
- It keeps dancing up and down every day or a week (4H chart)
- It always moves up if there is a war.
So overall, it’s always on the uptrend.
Now let’s move forward to the simple gold trading strategy.
Simple Gold trading strategy
To understand the strategy you must know support and resistance levels. It’s where you will open the trade.
What are the support and resistance levels?
Evey commodity moves at some specific level at every scale. If we extract the interval, the ground of the interval is the support point, and the roof is called resistance.
So the first thing you should do is find out the support and resistance levels of Gold prices on different charts, especially on 4H, D1, and Weekly.
It will be the same as for others.
It’s better to do it yourself to understand how gold prices move. You will realize if it’s following the support and resistance pattern or not.
As you dig deeper you will better understand the strategy and won’t make mistakes.
Now let’s look at the simple gold trading strategy.
On forex, you either buy or sell. If you buy gold and the price goes up, you are in profit. If you sell gold and its price increases, you are at a loss and vice.
The first step of this strategy is to always stay in the buy position (as we see its upward direction on the yearly chart). We can predict that It will move up over time. So you will never be at a loss in the upcoming years.
Here is the second step.
You realized that $1830 is the support level, and you started trading with the lowest trade amount 0.01. Secondly, you are in the buy position.
But it went down to $1780. Apparently, you are at a loss of $50. You started another small trade. Again you are in the buy position.
In the 4H chart, we have already seen that mostly it moves back from the second support or resistance. So, it will move back to touch $1830. You closed the second trade at $50 (at the moment).
Now it moves up, $1830 will be in profit that you will close on $1870, you are at $90 profit with least trade amount.
For instance, it didn’t go up from $1780 previously. It will fall to $1720.
Now two of your trades are down, and you are apparently at a loss. But on this support level, you open another buy trade. If the price moved back, you start selling on every resistance. Otherwise, you can capture movements on these levels.
Once the prices move back, all of your trades will close in profit.
Here are some critical points.
- People can’t always buy because they have small trading accounts. If you don’t have enough money, it will liquidate your account. That is how brokers make most of the money. You should manage to put maximum money in your account. Say you should start with $2500 (even higher if you open many trades or big trades).
- Don’t buy at the hype. If it’s pumping due to news or war, and you were not in, don’t get in. It’s better to keep your money safe instead of putting it at risk. Everything that goes up comes down.
- Don’t get greedy when it’s going up. It’s going nowhere. It will surely come back, and you can open trade again. So if the trade is on profit and it has reached resistance, close the trade.
- Once again, be patient. It’s not a loss but a matter of time. You only lose when you sell. Some of my crypto trades are down for months, but I don’t sell.
- Always buy at least after the $50 movement in this strategy so that you don’t open many trades and put yourself at risk of liquidation.
One of my other fellows is trading for even longer. Forex has been life-changing for him. He said that he never closes the trade at a loss. If something goes down, it will surely go up. Sometimes, it takes 6 months to reach the goal. He doesn’t care because he can open many other trades to capture movement.
That was the simple gold trading strategy that even beginners can use.
Anyone with average trading knowledge can follow the safest gold trading strategy for 100% guaranteed profits.