XAUUSD is a Futures Spot contract. it trades similarly to a stock or ETF or any stock market derivative. When the stock market is stressed as it is right now, then this futures spot offers potential swing to platform position trading opportunities.
Trade Wars are creating a very stress stock, bond, ETF, and commodities markets situation at this time. Gold is still considered one of the "Safe Haven" investments when the Stock, Bond or other financial markets are stressed and many retail investors are worried and are selling their investments or moving their 401k funds from one type of pension fund to another type that is a safe haven in their opinion.
Using a Spot requires Spatial Pattern Recognition Skills, an understanding of why and how professional traders include Proprietary Desk Traders, Floor Traders for the Buy Side or Sell Side, and Independent professional traders who trade in their home office. These professional side market participants use special order types that strike the penny spread and trade on the ATS venues which means you need to be able to read a stock chart as easily as you read a book or article on the internet as the Level 2 does not show their activity intraday. WHY?
1. Because the speed differential is massive. The Professional Side is trading on a millisecond scale. Retail transaction are required to be filled within 1 minute or less.
2, The lot sizes professionals sue nowadays are not 50,000 or 100,000. That is long gone. In order to make profits on the penny spread the average large not is 1 million to 50 million shares so you never see these orders as they transact on the ATS private venues.
3. Stop losses must be placed a value support levels. Never use percentages unless you are donating your capital to someone on the professional side. Your Broker is required to light all their orders before sending to their PFOF Payment for Order Flow Market Maker who pays your broker to send your orders to the MM.
Trade Wisely
Martha Stokes CMT
Trade Wars are creating a very stress stock, bond, ETF, and commodities markets situation at this time. Gold is still considered one of the "Safe Haven" investments when the Stock, Bond or other financial markets are stressed and many retail investors are worried and are selling their investments or moving their 401k funds from one type of pension fund to another type that is a safe haven in their opinion.
Using a Spot requires Spatial Pattern Recognition Skills, an understanding of why and how professional traders include Proprietary Desk Traders, Floor Traders for the Buy Side or Sell Side, and Independent professional traders who trade in their home office. These professional side market participants use special order types that strike the penny spread and trade on the ATS venues which means you need to be able to read a stock chart as easily as you read a book or article on the internet as the Level 2 does not show their activity intraday. WHY?
1. Because the speed differential is massive. The Professional Side is trading on a millisecond scale. Retail transaction are required to be filled within 1 minute or less.
2, The lot sizes professionals sue nowadays are not 50,000 or 100,000. That is long gone. In order to make profits on the penny spread the average large not is 1 million to 50 million shares so you never see these orders as they transact on the ATS private venues.
3. Stop losses must be placed a value support levels. Never use percentages unless you are donating your capital to someone on the professional side. Your Broker is required to light all their orders before sending to their PFOF Payment for Order Flow Market Maker who pays your broker to send your orders to the MM.
Trade Wisely
Martha Stokes CMT
Martha Stokes, CMT
ttrader.im/learn-tv
Learn how to use the technical patterns of each market participant for better trade planning.
ttrader.im/learn-tv
Learn how to use the technical patterns of each market participant for better trade planning.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Martha Stokes, CMT
ttrader.im/learn-tv
Learn how to use the technical patterns of each market participant for better trade planning.
ttrader.im/learn-tv
Learn how to use the technical patterns of each market participant for better trade planning.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.