Trading Gold 101
Gold is on many Forex traders minds and balance sheets. Unfortunately, many are encountering margin calls and significant draw down.
We would suggest that it is the area that they decided to trade Gold. At the moment, Gold is in a $50 trading range as shown in the chart for the month of May.
In a trading range, one either sells rallies at support and buys panic selling at resistance OR waits for a breakout (or down) to go with the trend.
Basic? Yes. But it is tough to implement since you have to realize that you will not be holding gold for a long period of time but trading it.