Forex.spektekno.com – Make sure the gold is now much loved and made by novice traders. But before doing trading in gold, it is very necessary to prepare the measures trade in gold so that the process can run optimally. The following four steps to exchange the gold according to Alan Farley.
A Glance Alan Farley
Alan Farley one of the experts who are experienced in the trading world. A graduate of the University of Pittsburgh.., .. this never wrote a book in 2000 with a degree swing traders main. Alan also wrote newspaper, the daily trading Swing for 16 years, and became a columnist for the change of swing in The Street[dot] com. Not only that, Alan Farley is also a contributor to CNBC and Bloomberg TV.
One quote from Alan Farley is: “I’m pretty sure that if I could not achieve success in life if I’m not helping others to succeed. Therefore, I spent almost 3 decades to guide traders and investors about the global market is very complex, showing them how the perpetrators of the competitive market.
“With the experience of Alan Farley is quite promising as an expert in the financial market, then there is no harm we look at his writings about trading gold in here.
3 Step Gold Trade That Need To Be Considered
According to Alan Farley, the gold market offers high liquidity and opportunity to earn a profit, because of its position can be said to be unique in the economic and Political order of the World. Steps trading gold is not difficult to learn, but beginners trading need to try to implement it with full attention. What is it?
1. Understand What Affects The Price Of Gold
As one of the means of payment which is the oldest in the world, the Use of gold have been published in the world’s financial transactions. Almost every person has a subjective opinion about the gold, but it is basically the movement of gold prices only react in a number of price catalyst.
Three factors here is the main catalyst that has the most sentiment, volume of trade, and the trend of the movement of gold:
- Inflation and deflation
- Fear and greed
- Demand and supply
Beginner trading experience a high risk, when they sell gold as a reaction to one of the above factors. For example, when a seller in the world financial markets and gold spotted, many traders assume that the fear the market will be able to bring the price of gold rose is high.
They finally get into the gold market, without review first what is causing the decline in the global market. When it turns out that the previous loss only occurs as a reaction to the technical, the market will return repaired, and traders who have already bought gold before inevitably experience a loss.
2. Determine The Characteristics Of The Gold Market
Gold attracts a lot of people with many different interests, who wants to buy or sell it. First, there’s the gold Bug “infestation gold” is gold investors with a bullish bias. In addition to collecting physical gold, investors of this type is usually also allocate most of the funds to invest in the instruments of gold to another, such as the company’s stock of gold, stock options gold, and so on.
They are long term players who are not shaken by the bias bearish. Gold Bug can affect the liquidity in the gold market, because they tend to increase the transaction of purchase from time to time.
Second, gold is also an interesting activity of investors who hold protofolio in a variety of assets. This activity is not solely support the view is bullish for the gold market, as it aims to balance the risks are managed. Therefore, transactions that are carried out in every step of the gold trade has always been diverse, can buy or sell their gold holdings.
3. Learn The Charts Of Long-Term Gold
When You decide to trade gold, Trade Gold, the next can be applied is to take the time to learn chart movements in gold prices. According to Alan Farley, the chart of gold Prices not only issued the trend of increasing long-term up to several decades, but also can show a weakness in a long time.
Historically, gold is not a lot of moving up to the 1970s, after the removal of the gold standard in 1971, the price of the takeoff of gold and print Uptred long time, supported by a rise in inflation because the price of crude oil. After rising in February 1980, the price then fell to near $ 700 until the mid-1980s.
as a reaction to the tight monetary policy from the Federal Reserve. In the 2000s, gold entered to historical peak in February of 2012 amounted to $1,916 per ounce. A gradual decrease after that period then take the price to fall to 700 points in 4 years. However, gold has reached 17% in the first quarter of 2016, posting profits quarter by the most in three decades. In May 2019, gold traded at $ 1.283 meters per ounce.
From the point of view of analysis, the rise and decline of gold prices in the long term can provide a level of relaxation for a trader or investor, to find the position of the entrance easily.