GOLD vs FOREX

[reynuevo]

Well gold trading is similar to forex trading in the sense that it can be traded on line too. However most people who trade gold prefer it because it is relatively easier to analyze. This is because unlike currencies that are affected by myriads of factors, gold price is not affected by so many factors.

[ctech]

Some people will feel the same as you. however the essence of the trade is the same for gold and any currency pair.

[fmfx]

I like to learn gold trading, is it the same with forex trading?

[ronaldfx]

Thanks for this information

[ctech]

Originally Posted by fmfx

I like to learn gold trading, is it the same with forex trading?

I think I'd already replied to this.

if you choose it, try to learn the market and analyze it.

[fmfx]

Which one more profitable? :D

[jefftimothy]

I prefer currency trading than gold trading. Actually I have a small trading account which is not suitable for gold trading as we know enough capital is needed to trade with gold safely.:)

[MakeMeFamous]

There is no reason why you cannot trade the Gold just like how you would trade the currencies.

You just need to be consistent with your approach when it comes to your trading strategies and also entry and exit points. Importantly, you must practice strict money management for every trade. For me I try my very best not risk more than 3% of my capital in a single trade.

To make sure you practice strict money management, you have to calculate the lot size that corresponds to your amount of risk. Lot Size = Risk Amount/Number of Pips x Pip Value. Do note for Gold, based on a standard lot of 1, every 0.01 movement in price equates to US$1.

[Zadd]

GOLD TRAD[I]NG involves less of risk as compared to forex trading but the thing is that forex trading provides you an opportunity to evolve a better trader out of you and is thus more interesting.
forexmetal

[GDMFX]

Originally Posted by MakeMeFamous

There is no reason why you cannot trade the Gold just like how you would trade the currencies.

You just need to be consistent with your approach when it comes to your trading strategies and also entry and exit points. Importantly, you must practice strict money management for every trade. For me I try my very best not risk more than 3% of my capital in a single trade.

To make sure you practice strict money management, you have to calculate the lot size that corresponds to your amount of risk. Lot Size = Risk Amount/Number of Pips x Pip Value. Do note for Gold, based on a standard lot of 1, every 0.01 movement in price equates to US$1.

I totally agree. :(:(

[tama13]

I would love to venture into metal trading, though i do lack the knowledge, sometimes i feel some pairs in forex are quite to fast :) and read about silver trading being steady and a good place to earn pips with swings and position trades :)

[salkhan]

Originally Posted by tama13

I would love to venture into metal trading, though i do lack the knowledge, sometimes i feel some pairs in forex are quite to fast :) and read about silver trading being steady and a good place to earn pips with swings and position trades :)

I have been advocating that Gold and Silver has much more upward potential from this year onwards. This is why I have a positional trade on Silver because I have a long term view on the market fundamentals to suggest Silver might trade higher.

I will advice new traders to avoid trading Silver for short term price gains as Silver is one of the most volatile instrument you can trade on.

The Silver market is a relatively small market in terms of volume traded, thus it can be subjected to extreme volatility if certain trading parties decide to enter the market with large contracts.

If you are still keen to trade Silver, do take the necessary precautions in terms of stop loss placements and money management.
Silver moves in denominations of 0.001 and each point is worth USD$5 per one standard lot. That means if the Silver price moves by just a dollar, the profit/loss is USD$5000. So make sure you manage your risk by calculating your lot size to reflect not more than 3% risk of your capital per trade (that's my recommendation).

[PrinceofTower]

Originally Posted by salkhan

I have been advocating that Gold and Silver has much more upward potential from this year onwards. This is why I have a positional trade on Silver because I have a long term view on the market fundamentals to suggest Silver might trade higher.

I will advice new traders to avoid trading Silver for short term price gains as Silver is one of the most volatile instrument you can trade on.

The Silver market is a relatively small market in terms of volume traded, thus it can be subjected to extreme volatility if certain trading parties decide to enter the market with large contracts.

If you are still keen to trade Silver, do take the necessary precautions in terms of stop loss placements and money management.
Silver moves in denominations of 0.001 and each point is worth USD$5 per one standard lot. That means if the Silver price moves by just a dollar, the profit/loss is USD$5000. So make sure you manage your risk by calculating your lot size to reflect not more than 3% risk of your capital per trade (that's my recommendation).

Good one.

I believe the commodity prices for metals like Gold and Silver will rise but only in the long term.

Otherwise, on a short term basis, it still remains volatile as what you said.

[Angelnish]

I think best investment in commodity is Gold.

[Recruit]

There are also a lot of fundamental factors that could impact the gold price. Some of them are not available for the publicity but still can change the market situation sharply.