Trading gold and silver can make you a fortune. The very best way to trade gold, silver or other valuable metals is to trade futures contract. Now, trading futures can be risky. Futures contracts move quickly and show a lot of volatility. Traders profit from this volatility. But, if you are not comfy with threat then you can keep on trading gold and silver ETFs like the SPDR Gold Shares (GLD) or the iShares Silver Trust (SLV) and other precious metals ETFs. But the point is this that any person can study futures trading and profitably trade gold and silver futures contracts.
Let’s illustrate this precious metals trading strategy with an instance. A gold futures contract consists of one hundred ounces. Now, sell rs3 gold can vary from one particular broker to an additional but it is commonly around $five,000. This implies you can control 100 ounces of gold with $5,000. Every point the gold futures contract moves up or down, you make $10 or drop $10. Suppose, you bought the gold futures contract and it moved up by 50 points. You make $500 less the commission and other fees).
Let’s get back to our gold trading strategy. Suppose, you purchase one particular gold futures contract that indicates 100 ounces of gold. It closes up by 30 points in the next handful of days. You are delighted. By the finish of the week, it gains another 20 points. You sell your gold futures contract. So, with this one particular gold futures contract you have produced 50 points. That suggests $500. This is your very first trade in a series of 4 trades.
Now, you make your second trade by acquiring two gold contracts as the gold market place is in an uptrend and you are confident that it will continue to do so for the quick term. You wait for a few days and the contract is up by 50 points by the finish of the week. You sell your two contracts and take profit of $1,000. You have just completed the second trade in your series of 4 trades.
Subsequent week you acquire three contracts. Rumors are flying about gold prices rising once again. You want to profit from it. This time, the contract goes up by 100 points. You sell your 3 contracts and realize your profit of $3,000. This is the third trade in a series of four trades.
All of a sudden gold prices drop like that did a few days back. You are shocked. But never worry this is the way markets work. You wait for a couple of days and the prices once more start out climbing. You purchase 4 gold futures contracts this time. You wait a couple of days just before the contracts each and every move 50 points. You sell all the four contracts creating a nice $two,000. This was the fourth trade in a series of four trades.
Your net profit is $500+$1,000+$three,000+$2,000=$six,500! Not bad! Now, you will start out all over again with a new series of 4 trades repeating what you did above.
You can make these 4 trades once more and once more starting from scratch after every single 4 trades. Immediately after every four trades, you remove the profit and start out once again tiny. This way, you lower your threat of losing all your profits if the market abruptly moves against you. This is how expert gold traders trade and this is how you should trade. You must have observed that their is nothing at all a great deal in this gold trading tactic. That is what it is and that is how you should retain it!