What an incredible finish to Friday’s trading action.
We saw the US stock markets pull back significantly but remain within support and the recent uptrend.
But as mentioned, very few of the Trading Cup competitors are trading the SP500 or Nasdaq (NAS100) indices, instead preferring to focus on Gold, due to ultra-competitive spreads.
As you can see from the leaderboard below, Mao Long Yang continued adding to his winning positions, moving from 651% to 739%.
The hourly chart on Gold (shown below), highlights the volatility and opportunity for those trading the precious metal.
With stocks pulling back, XAU/USD continued to remain the focus among traders, who believe the current economic uncertainty and ongoing Covid-19 could be enough to push the shiny metal to new short-term highs.
With risk sentiment falling, as seen with US indices pulling back, Gold could be the safe-haven choice going forward.
But it goes without saying, the leaders are not interested in the longer-term prospect of where Gold might be heading but instead prefer to trade more actively on an intraday basis.
Haidong Liu, currently 4th on the leaderboard, is also focused on Gold, with around 90% of his trades on the precious metal. Mr Liu’s only other trades are on the EUR/USD and the SP500 index.
Those trading the British Pound would have noticed a slight bullish divergence signal showing.
Price on the GBP/USD fell slightly below the previous low from the 22nd of June, but we can see the stochastic oscillator hitting a higher low during that period.
The challenge recently on Sterling has been the rise to short-term highs, followed by consecutive lower highs and lower lows.
Intraday traders could expect some volatility on this Forex pair over the next few days.
Wen Bin Yang has been the consistent performer of late, but he will need to trade smart if he is to threaten Mao Long Yang’s dominance.
Now is the time to trade sensibly as we head into the last two days of trading.
As many professional traders attest, it is the ability to minimise the mistakes that can often provide the biggest benefits to your trading account.
Avoid the concept of trying to be the hero. Recovering from losses is one of the most challenging thing for traders of all levels.
Trade your plan and your systems as you have designed them and minimise your errors at all costs.
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Ashley Jessen is the author of CFDs Made Simple and Chief Operating Officer at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.