why are so many beginners trading xauusd?
I was at a seminar the other day where i interacted with many new traders and one thing they had in common was that 80% of them were actively trading xauusd. My question is why the interest in this asset and i know xauusd is very volatile so are these beginner traders not risking too much trading it?
I started trading xauusd as a beginner and it has been profitable for me, i do not think it is too much for a beginner to handle.
I started trading xauusd as a beginner and it has been profitable for me, i do not think it is too much for a beginner to handle.
doesnt change the fact that xauusd is a very volatile asset and I am sure you must have recorded a lot of losses when starting. This is the point i am trying to make: beginners should learn with less volatile instruments like eurusd.
I noticed this too and I think many new traders rush to trade xauusd because of Fear of Missing Out (FOMO). They hear their friends talk about how lucrative trading xauusd is and they want to join in. Truth is that without a solid strategy tested many times, trading xauusd as a beginner is just a way of throwing your money away. xauusd is too volatile but if beginners must trade it, i suggest they use a micro or cent account.
I started trading xauusd as a beginner and it has been profitable for me, i do not think it is too much for a beginner to handle.
xauusd prices move faster than most conventional instruments so the beginners must be looking for a higher reward for their risk. While currency pairs like eurusd move around 100 pips in a day, xauusd can ove 200 pips in a day, making it more profitable and more risky at the same time.
I think beginners should avoid xauusd till they are sufficiently grounded in risk management and can develop a good strategy for xauusd.
When they say 90% of retail forex traders lose money, it is partly because of this kind of high risk trading by beginners who want a quick buck.
You might get lucky with xauusd a couple of times but your luck will eventually run out and if you dont know what you are doing you could make big losses and even quit trading.