How To Start Trading Gold Online
Wanna know how to start trading gold online? To trade gold online, one simply has to open an account with a forex, cfd or a futures markets broker.
Then once your gold trading account is opened, you simply deposit money and you are on your way to invest in gold trades.
What Types Of Gold Markets Can You Trade Online
Types of gold markets that you can trade online are gold spot, futures and options markets. If you want to get involved in online gold trading, then you can trade gold spot market which is a gold vs USD currency pair with the code XAUUSD or XAU/USD.
You can also trade gold futures markets at COMEX which is a Chicago based commodity exchange owned by CMEGroup.
Third option is trading gold options on gold futures markets also on CME Comex exchange.
You can also trade gold options that track spot gold price or ETFs like GLD that track gold price at CBOE exchange.
Lately also cfd brokers let you trade gold options on gold futures contracts or ETFs tracking spot gold market.
What Gold Trading Systems Should Be Used
There are many systems for trading gold. Short answer would be – use a system for trading gold that is proven profitable.
Of course this is easier said than done.
Proven profitable gold trading system usually has built in protocols that give you proper understanding on reward to risk ratio.
Rule of thumb is – aim for a reward to ratio of at least 1:1 or 2:1 to enter a gold trade.
How Much Leverage To Use When Trading Gold
Gold leverage to use for gold trading depends on what type of an online gold trader you are.
Leverage on gold can work for you as well as against you.
With intraday gold scalping systems, most traders with gold go for the highest possible leverage which if trading as a currency pair at forex brokers can go as high as 1000x.
My personal recommendation is that you need to be aware of rewards and downfalls of using too high leverage.
Not having a proven gold trading system combined with strong trade & money management can do real damage to the size of your trading account..
Where To Test Gold Strategy Before Trading With Real Money
You can test gold strategy first on a demo account. Every broker is required to offer you demo trading before you feel confident in your trading system.
Demo trading gold online is mentally nowhere near the same level of trading gold with real money so you could also trade with real money but with a small amount you feel comfortable losing.
Let say having a demo gold trade that is down $2,000 will not make you feel negative.
Then you try placing a real live gold trade risking a tiny amount of your money.
If you would be up just $10 in profit, then you will already feel a nice boost in feeling good.
Some traders just dive in and go straight to gold live trading with real money.
And others take time to dip their toes in the water with trading in demo mode first, before go with trading gold live.
Final Thoughts On Day Trading Gold
Trading gold markets or trading financial markets in a technical way is pretty easy and straightforward.
- You only need to be 18 years old to open an account at an online forex or cfd broker
- You can practice on demo account
- Or you jump right into trading with a live account after you deposit money
- You are on your way to start your gold trading career online.
You can also read our Forex Brokers Reviews category to read about forex brokers we tested.
As a boost in your trading career, you could try to invest in getting a trading mentor to help you on your path to improve your gold trading skills.