Some trading questions take years to answer properly, usually because the answer only becomes obvious after making the mistake several times. In this article we share three of them, with the answers we wish someone had given us at the start, so you can skip the expensive part of the lesson.
When should you stay out?
Stay out when there is no clear setup, or when big news is due. Those are the two conditions that cost traders the most. A chart with no clear level to trade from is a coin flip, and a major economic release can move gold violently in either direction. Not trading is a decision too, and often the best one available.
How big should you trade?
Small enough that a stop-loss hit does not hurt. Always. That is the whole answer. If a single losing trade would make you anxious, angry or tempted to win it back, the position is too large. Every trade idea we send has a stop-loss, so you know the exact distance to it before you enter. Size the trade so that distance is comfortable.
New traders often reverse this logic, sizing up because they feel confident about a particular idea. Confidence has nothing to do with it. Your lot size should be set by what you can lose calmly, not by how good the chart looks. Keep it consistent from one trade to the next.
When should you step away?
After a loss that made you angry. Anger is the signal. A planned loss within your stop-loss should feel like nothing more than a cost of doing business, so if it has stirred strong emotion, your judgement is compromised for the rest of the session. Close the app, come back tomorrow, and you will trade better for it. Members get these answers on day one in the free community.
Key takeaways
- Stay out when there is no clear setup or big news is due.
- Trade small enough that a stop-loss hit does not hurt, always.
- After a loss that made you angry, stop and come back tomorrow.
Common questions
When should you not trade gold?
When there is no clear setup on the chart, or when a major news release is due. Choosing not to trade is a valid decision.
How much should a beginner risk per trade?
Small enough that hitting your stop-loss does not hurt financially or emotionally. If a loss would make you angry, the position is too big.
Trade ideas with the levels already worked out
Join the free community and receive XAU/USD trade ideas with entry, stop-loss and take-profit, live training on Tuesdays and Thursdays, and support whenever you are stuck.
Join free on TelegramOpen the calculatorsRisk warning: This article is educational content, not personal investment advice. Gold is a leveraged, volatile instrument and you can lose some or all of your capital. Gold Trade Signals is not FCA regulated. Read the full risk warning.
More from Inside Gold Trade Signals
Your first 30 days trading gold with us, mapped out
A simple roadmap for your first month with us: setup and first trade in week one, live training and a journal in weeks two and three, review in week four.
Join for free: what is included and how it works
No start-up fees, no monthly subscription, no hidden costs. Everything included when you join through our broker partner, and what you need to begin.
You know nothing about trading? Perfect. Here is how we start
Thousands of our members had zero trading knowledge when they started. What you need, how onboarding works, and the support from start to finish.