Spot Metals in Trading

No matter how much perfect you think your strategy is, you are always advised to tread with caution.(adsbygoogle = window.adsbygoogle || []).push({});

In this short article, I'd like to summarize 5 of the most important things I've learned about successful trading, being an independent full-time trader for over 11 years and a fully automated trader for about 7 years. I find all these lessons very important and, in my opinion, no trader should ignore them on their road to success.

Lesson 1: Refined simplicity

I have to admit that I've come a long way since I began trading.

Many years ago, I started trading very simply. It was very basic and, to be honest, it didn't work well. In todayÂ´s market, you definitely need more than the usual, basic trading stuff you'll find everywhere on the internet.

Later on, over the years, I've slowly moved to a more sophisticated method of trading, full of very advanced algos, complex know-how, mathematical and really insane trading concepts.

What was the result of that?

The more complex my trading was, the more never-ending technical problems I constantly had, becoming like a snowball effect! The complexity was a nightmare and I found out that this other extreme didn't work either.

In the end, I realized that the trick to success in trading lies in refined simplicity.

Many rather basic trading concepts can still do pretty well, if you can bring something genuinely new to them. That sounds easy to do, but it's definitely the hardest part. After 11 years, I try to keep everything rather simple, but always with some refined, strong and new quality. This keeps my overall workflow manageable, but still brings up extraordinary automated trading systems with great performance.

Lesson 2: Creativity

Like it or not, trading is 40% about being technical and 60% about being creative. Honestly, to me, creativity is still 80% of my success.

What counts is the idea. It's the overall concept that gives you the edge. The more you think outside the box, the more creativity you bring to trading, the faster you'll find great systems and more efficient ways to trade them, and most importantly, the more ideas you'll bring to your risk management.(adsbygoogle = window.adsbygoogle || []).push({});

To be a successful trader, you must have a competitive edge that separates you from other traders. Along with skills and education, experience is key when it comes to trading.

Many traders expand and diversify their portfolio by trading spot metals.

The more assets you have under your belt, the more your competitive advantage is increased. It is also important to know your trading objectives and risk profile before jumping into the world of spot metal trading.

Gold and silver are two of the most commonly traded commodities in the world. Similar to trading currency pairs, traders take long or short positions in gold or silver while at the same time, taking the opposite position in the US Dollar.

Trading spot metals involves speculating price movements of gold or silver in relation to the US Dollar.

Spot metals are traded via over-the-counter. There is no central market for trading spot gold and silver but the main centers are London, New York and Zurich.(adsbygoogle = window.adsbygoogle || []).push({});

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