Trading is a business but not a gambling. Many venturing into trading journey and think they can become millionaires in few months through trading. This is the common mindset for every newbie , including myself when i got started.
Trading requires some level of discipline and patience like a student spending years before graduating from college.
KEY REASONS WHY MANY TRADERS FAIL IN TRADING GOLD/XAUUSD SUCCESSFULLY
Gold moves fast and violently
XAUUSD can move 20–50 pips in seconds. New traders:
Use small stop losses
Panic when price spikes
Get stopped out before the real move
Gold doesn’t respect tiny SLs the way EURUSD might.
Over trading because “gold always moves”
Gold is active almost all day, so beginners:
Enter too many trades
Trade every small candle
Don’t wait for confirmation
More trades, more profit. On gold, it usually means more losses.
Ignoring news & fundamentals
Gold reacts strongly to:
USD news (CPI, NFP, FOMC)
Interest rates
Risk-on / risk-off sentiment
Many new traders trade during high-impact news without knowing, and gold spikes both directions. Before you know it, account is gone.
No clear structure (just indicators)
Most beginners Stack indicators
Don’t understand market structure
Enter randomly without bias
Gold respects structure, liquidity, and sessions more than indicators.
Wrong lot size (this one kills accounts)
Gold requires proper position sizing. New traders:
Use big lot sizes on gold
Over-leverage
Risk too much per trade
One bad trade expose the whole account into big loss
Emotional trading
Because gold moves fast:
Fear makes them close early
Greed makes them hold losers
Revenge trading after losses
Gold exposes weak psychology very quickly.
No patience for confirmations
Gold loves:
Break & retest
Liquidity sweeps
Fake breakouts before real moves
New traders enter too early and get trapped.
The real truth most pro traders won’t tell you:
Gold doesn’t hate beginners, rather beginners disrespect gold.
Once you:
Trade fewer, high-quality setups
Respect structure and sessions
Control risk properly
Gold becomes one of the best instruments to trade.
Learn, be patience , risk wise and you keep making consistent profit.
Analysis vs Result
Its only pure knowledge and patience can give you this kind of results. Over 3000pips on xauusd on a single setup
#lord_of_the_ chart
