XAU/USD & XAG/USD - Gold & Silver Traders Thread

Hello,
I am new to this forum and hope to learn from others and share my opinion. Gold is touching previous resistance on weekly chart . I think it might retrace a bit before continuing the price climb. Any comment appreciated thank you

I took yesterday's fed move up to 1767ish which I have on my weekly chart as a 38.2 retrace of the 1920-1522 move. Thisa morning I checked the daily and 4h and decided that I saw what looked like a breach of that level, pullback, retest and cofirmation that the 38.2 was now acting as support.

That being said it's Friday and anything can happen... I do think the the fundies are in control for gold now. Will see what happens when NY opens.

After yesterday's party, a bit of relax.
Facts about gold:

http://www.businessinsider.com/facts...graphic-2012-9

note: if you are trading gold in a regular basis, and yesterday you were unable to make money... consider trading other thing instead

Don't have the patience to wait for retracement so i made another buy...

Take cover and dump the dollar!

excuse my ignorance...
i was taking a look at your pic, just out of sheer curiosity, and....

i see that size column shows 1 or 2.

Are you buying 1 or 2 ounces in a weekly chart?

isn't a bit small? i mean, you need a big trend in order to make some remarkable profit, right?

I've been trying with 50 oz and definitely too much for me
(that's half a nymex GC contract!)

trying now with 10-20 per trade

Any idea about the optimal size for trading XAUUSD?

note: yes, i know, it depends on your account, your nerves, your timeframe, your style.... blah blah blah

That really is a question akin to "How long is a piece of string...."

A couple of answers :

There is a school of thought that says you should not commit more than 1.5% of your portfolio to any one trade. Obviously this is more suited to scalping than to long term investment...

FWIW when scalping I look for at least a 3-1 risk/reward ie I will risk the equivalent of $1 for a potential reward equivalent to $3. This does not take account of margin which I would strenuously advise avoiding.....

beeb

EDIT - there basically is no answer to that question - I know people who trade a few bucks per $ and I know pro traders who trade dozens of futures contracts at a time....

you're right.

i've been trading always futures, and this xauusd, where you can buy 1 oz... just feel rare until i find "my size" here

Well why not trade the equivalent amount to what you traded in GC or SI?

beeb

EDIT - also not every trade merits the same sized position......

Totally agree, not every trade merits the same sized position.

nymex contract of 100oz is too much, give you tons of money in minutes but also hurt you badly many times.

Other smaller contracts (QO,MGC) are too illiquid.

I'm looking for liquidity, and smaller size, that's why i trying xauusd.

Testing 50 / 20 / 10 ounces...

If you need to ask how much you should risk, I strongly urge you to do more paper trading (setting it to half or less of your actual starting capital, not $1,000,000 or whatever the default is) until you have a better grasp of what you're getting into. I got myself into serious trouble last year thinking about how much I could make in gold futures, but I lost $5,000 before I could click the sell button when gold unexpectedly dropped and I could have bankrupted myself easily if I hadn't been right there when it happened.

Trading is similar to gambling in that you should never risk more than you are willing to lose. It is far more important to protect your earnings and limit your losses than to miss out on a perceived opportunity: There will always be another opportunity to make money, but whatever you lose is gone forever.

My greatest mistake last year was getting stopped out and panic selling. It cost me at least ten times more than I ever lost being actually wrong about the trade I was making, and the reason I did it was mostly because I was trading more than I could reasonably afford to lose.

Also, don't think you can get in at every bottom and out at every top. If you aren't experienced enough to seriously know exactly what you're doing, it's better to play it safe and wait for confirmation for every entry and get out as soon as you hit your targets even if it looks like the price may continue onwards. You'll won't make as much money this way, but you'll lose a lot less which is far more important.

Finally, never chase the price when you see a big move: Always wait for a pull-back. Sometimes the pull-back happens right away, and sometimes it can take weeks, but if you try to catch the price you will regret it virtually every time.

It's friday and if gold will stay around 1770lvl...next week we should see 1800lvl.

Good post kadc,
basically agree with everything.

"but I lost $5,000 before I could click the sell button when gold unexpectedly dropped and I could have bankrupted myself easily",
i know that feeling, that's why i quit trading gold futures.

Let's hope that these last years trading futures help me to find my place in the gold market, otherwise i simply will continue trading the other markets as usual

good trading guys!

thursday's fomc move haven't been retraced, seems price is finding accommodation at these levels.
In addition, nfp move was never retraced.

Anyway, risky to say, because indeed, it's friday. Monday should give us a better point of view.

I closed my position at $1775 and I will start adding to it on the appropriate candles starting at the $1765(ish) 23.6% Fibonacci of yesterday's price action.

I just noticed the Fibonacci for my trading software (TWS) which has ~$1766 is slightly different from the live charts on Goldprice.org which give me ~$1763 for the 23.6% retracement. I know TWS fudges the lines sometimes if it thinks there's congruence with a high/low, but someone give me a second opinion so I know which one is more accurate in the future.

Man, thats why we have stop-losses...

Use them manage your risk and exposure.

Have a great weekend.

It seems GOLD loves September, lol.

As I always say, excellent Thread XTrade, I'm sure a lot of people like me are learning a lot with it.

I still have my XAUUSD longs from last year open, great lesson about Patience learned.

I see support in the 1766-1776 range.
It should hold until Gold October Options expire (9/25). By then Gold will be above 1800 already.
Just my 2 cents.

very good point,...also futures expired in 2007 (dont know for this year )

COMEX gold --> november 07, december 07
ECBOT GOLD --> 28.nov 07, 27.dec 07, 27.feb.08

Don't know what you are trying to say here - futures expire as follows:

http://www.ccstrade.com/futures/gold-futures-gc/exp/

beeb