We already covered the selection of the best gold etf for our online gold trade in the previous steps of this short tutorial. We also analyzed an actual situation in commodities generally and now you know what the actual commodity market mood is. Finally you also have to know whether gold etf is relatively strong or weak.
Prepare your trade setup
Now you must decide what to do next. Do you want to wait for a better position of price for a setup or do you try to prepare strategy setup right now? If you decide to prepare a setup now, then it is necessary to find a good entry point, ideal stop loss level and finally a possible target. It is good to note that as global commodities are not bullish it will be better to reduce the size of the position, i.e. number of shares you want to buy. It decreases risk a bit.
Another important point is that risk reward ratio for your position must always be better than 3 to 1. If calculated risk reward ratio is worse, then do not think about such a trade. Discard prepared levels and wait for more price development and better risk reward ratio values.
Manage gold trade
If you opened the position then you must also manage this trade according to your trading plan rules. Remember that the best trade with gold ETF is done according to your etf trading system rules and trading business plan.
Final gold etf trading tips
These points are almost universal for any type of gold ETF strategy. You can use them if you are a daytrader or if you are a mid-term position trader. It could be practical to prepare a check list and check it during you chart analysis and trade preparation process to be sure that no points omitted. It is good to remember these instructions as routine and repeat them again and again.
And finally, do not press yourself into a trade. Patience is the key know-how of profitable traders. Every good trader spends more time waiting and doing “nothing” than real trade executing.