We are reliable because:
- EF is holding licenses from Europe, Australia & Asia Pacific.
- Static, Low & Tight spreads.
- Trade Gold [XAU], Silver [XAG] & other Commodities.
- Minutely updated Gold & Silver News.
- Start trading with 200$ onwards or equivalent in your currency.
EFD Investments is an introducing broker of a reputed European company. We are online representative based in middle east region.
Our team members are serving clients from different parts of the world. We are instantly in touch with our Parent Company and reporting them on daily basis.
The duties of an IB is to generate the business by promoting and advertising the product of his company, therefore we don’t have any access on client’s money, as deposit and withdrawal matures between our Parent Company and clients directly with full of security and protection.
First of all,here is a short description about gold. We all know that gold and silver are the two commodities which have over all up trend. Main reason behind this is as population grows, people keep on buying gold and silver in the form of ornaments, for saving purpose or investment purpose and these two commodities are considered as safe heaven in Indian market as well as in International market.
Commodities also have down trend and their prices also falls but as we have noticed so far, they regain their prices after few weeks and months by getting back to their original trend of moving up. Based on this theory, we designed a strategy through which you can get profit whether price of gold goes up, falls down or moves in limited range
Have a look at the past year chart of gold so that you may get an idea about its trend and its price so far:
This is 13 year gold chart-ranging from 2000 to 2013. This charts clearly suggests that gold has over all up trend in last 13 years and it has minimum value of 250 USD per Ounce in 2000(1 Ounce= 31.1 gram) and highest value is 1920 USD per Ounce in 2011. You can clearly see many downfalls in this chart but it regains its original upward trend after falling.
This is 5 year gold chart ranging from May 2008 to May 2013. This chart suggests that gold has lowest value of 750 USD per ounce in Nov 2008 and highest value is 1920 USD per Ounce in May 2011. This chart also shows that gold as overall uptrend and it regains its trend even after down falls.
This is 1 year gold chart- ranging from May2012 to July 2013. It has lowest value of 1200 USD in June 2013 and highest value is 1795 USD in October 2012. You can easily see various uptrend and downtrend in last 1 year chart.
After reading these charts, we can easily conclude that the over all trend of gold is up and based on this theory, we designed a strategy which will be profitable for you whether gold goes up or falls down.
Suppose current price of gold is 1400 USD per Ounce. Gold always moves in 1 out of below mentioned 3 trends and it will keep on changing its trend depending upon market condition and it’s demand and supply ratio.
1-Up trend If gold is in up trend, it will go from 1400 to 1430 or 1440 or even more (depending upon its strength at that time).
2-Down trend If gold has down trend, it will fall from 1400 to 1350 or 1330 or even below (depending upon its weakness at that time).
3-Sideway trend Sideway trend means gold will be range bound and will keep on moving between fixed value. For example, it will be considered as range bound if it keeps on moving between 1400 to 1430 for many days or weeks or months.
Gold Trading Strategy
According to gold previous records and charts, we designed a strategy, which will help you in getting good profit, whether gold is in uptrend, downtrend or moves sideways.
Now have a look at our trading strategy:
Suppose current price of gold is 1400 USD per Ounce. Here 1 pip means 1 point. For example if gold goes from 1400 to 1401, we will say that it moves 1 pip up and if it falls from 1400 to 1380, we will say that gold falls 20 pips.
Now our trading strategy suggests you to buy gold with every 20 pip gap, whether it goes up or falls down and close that lot with 10 pip profit. Suppose gold is at 1400 USD. Now buy 1 lot of gold at 1400 USD and close it at 1410 USD (10 pip profit). Keep on buying gold with a gap of 20 pip and closing it with 10 pip profit, whether it goes up, falls down or move sideways, you just have to keep buying gold at predefined rates and closing it at predefined profit rates.
Profit in uptrend
If gold is in uptrend and suppose it reaches 1450 from 1400. According to our trading style, you will buy gold at 1400 which you will close it at 1410. Then you will buy at 1420 which you will close it at 1430.Then again you will buy at 1440 which you will close at 1450. This cycle will go on till 1450.
NOTE - If you are buying gold at 1400 and closing it at 1410 and if again it falls to 1400, you have to buy it again after closing previous lot. In this way you can get many cycles at same price. You may get same cycle once or twice or thrice or even more, depending on market and its movement. You just have to keep striking same rate again and again after closing previous deal at same rate. If you follow this strategy you will get profit if gold is in uptrend
Profit in down trend
If gold is in down trend, it may fall from 1400 to 1350. You just have to follow same strategy. Keep on buying gold with pre defined rates. In this case, you have to buy gold at 1400 with closing rate of 1410. If it falls to 1380, again buy it with closing target of 1390. If it touches 1380 you have to buy it again with closing target of 1390 and so on.
Now you will ask - how will I get profit in downtrend? Here goes the answer: Gold is a very strong commodity. It rarely falls like this without any fluctuation. While falling from 1400 to 1350, it should keep on fluctuating and in this fluctuation, you will get profit in few of your deals and we knows, finally gold has to move up as it has over all upward trend. So after reaching 1350 or 1330, it should regain its original trend and will come back to 1400 and your all deals will be closed. If you get any cycle in this fall, capture it and again buy it at predefined rate. It may give you many fluctuations before reaching 1350. You just have to strike every fluctuation. If you capture all fluctuations, it will give you good profit and by chance it falls directly to 1350 without giving any fluctuation, it will finally move up as its over all trend is up. In this way, you can get profit in down trend also.
Profit in sideways trend
Sideway trend means gold will be range bound and will keep on moving between fixed values. Suppose these values are 1400 and 1450.Gold will reach 1450 and the will fall to 1400 then again will go to 1450 and so on. You have to follow same strategy. Buy gold at 1400 and close it at 1410. Then again buy at 1420 with closing target of 1430 and so on.
If gold is in side ways, it will fall from 1450 to 1400. Keep on buying at pre defined rates. Buy at 1440 with closing target of 1450, and then buy at 1420 with closing target of 1430 and so on. It’s in sideway trend and will move again to 1450 and your all deals will be closed.
So if you follow our strategy and trade accordingly, you will get profit whether gold goes up, falls down or move sideways.
NOTE-Whether gold is in up trend, down trend or move sideway, you have to keep buying gold at predefined rates suggested by us and keep closing at rates suggested by us. You may get same cycle again and again. For example, you bought gold at 1400 and sold it at 1410. It may again fall to 1400 then again you have to buy and close it at 1410. You may get same cycle many times depending on market and its movement, and you have to do this thing every time, whether gold is in uptrend, downtrend or sideways
Now the Investment Plan
This trading is based on margin money. You need not to pay 1400 USD to buy gold at 1400 USD rate. In gold 1 pip per lot means 1 USD jump. Suppose you are buying 1 lot of gold at 1400 USD and you closed that lot at 1410 USD. You will get 10 USD profit.
Now the investment plan:
If you are investing 500 USD and bought 1 lot of gold at 1400 USD. If gold goes to 1410 USD and you closed your deal, you will get 10 USD profit. But if gold falls from 1400 USD to 1350 USD. It means 50 pip falls and here 1 pip per lot means 1 USD. So 50 pips fall means 50 USD loss. Your investment is 500 USD and your 1 deal is in 50 USD loss, then your remaining free balance will be 450 USD.(Free balance=Total investment-investment in unclosed deal). This is the basic concept of margin money trading. That 50 USD loss will keep on increasing if gold goes away from your buying rate and it will keep on decreasing as it reaches close to its buying level. We knows that over all trend of gold is up and it will come back to its buying level sooner or later.
So if you have 500 USD and you are planning to buy gold with gap of 10 pip and gold falls from 1400 to 1350 USD, Your account will be like this:
- 1 lot bought at 1400 USD and it will be showing loss of 50 USD.(Gold falls 50 pips and 1 pip = 10 USD).
- 1 lot bought at 1390 USD and it will be showing loss of 40 USD.
- 1 lot bought at 1380 USD and it will be showing loss of 30 USD.
- 1 lot bought at 1370 USD and it will be showing loss of 20 USD.
- 1 lot bought at 1360 USD and it will be showing loss of 10 USD.
Here your total loss is 50+40+30+20+10 = 150 USD. Your total investment was 500 USD and your figure of loss is 150 USD. You are still in the game.
In this way if gold falls from 1400 to 1300 USD, you total loss figure will be 100+90+80+…+10 = 550 USD. In this case your total investment will not be enough to hold your total losses and hence, you will loose all your investment and your account will be 0.
As soon as your figure of loss reaches 500 USD, which is same as your investment, then your account balance will become 0 and your will loose all your investment which you can never recover. You just have to decide your buying levels and gap between two deals according to your investment, current rate of gold, its trend and its minimum level of fall. We will help you in designing proper strategy according to your investment and gold current price.
If you are planning to invest good amount, then you can go for big lots like 2-3 lots at same rate. Your profit will be doubled or tripled according to your lot size or you can go for small gap between 2 deals. Smaller the gap, more fluctuations you will get.
Average movement of gold per day is around 10-15 USD . It may move 40-50 USD per day but it happens rarely or at the time of big fundamental news in International market.
If you are planning to buy gold at gap of 10 pip and close it with profit of 10 pip( planning to buy at 1400 and close at 1410 and so on), then you may get 15-20 deals per month and 10 USD profit per deal(Number of deals depends on market and its movement. You may get more deals or fewer deals. It’s just a rough idea so that you may know about market and its volatility.)
If you are planning to buy with 20 pips gap with 10 pips profit target(buy at 1400 close at 1410 then again buy at 1420 close at 1430 and so on), then you may get 6-8 deals per month. So the basic thing is you gap between 2 deals will decide your monthly profit. If gap is more then you will get less profit but if gap is less then you will get more profit.
But gap also decides your figure in loss. If you are planning to trade with gap of 10 pip between 2 deals and if gold falls 50 pips, your number of deals will be 5 only. But if you are planning to open deals with gap of 20 pips and gold falls 50 pips, your deals in loss will be 3.
NOTE- This market is very risky and it’s not advisable to start trading without consulting us. Inform us about your total investment figure and we will design proper strategy for you according to your investment, gold current rate and market’s trend. We will also suggests you good buying and closing levels so that you can get maximum output from this trading strategy.
There is only 1 possibility of loosing money in this market.
If you keep on buying gold with small pip difference which is against your equity, then you will definitely be on the loosing side. We will make out proper strategy for you depending upon your equity, current gold price and its trend. You just have to follow us and trade accordingly. Normally, gold moves around 10-15 pips per day but in rare cases there is tremendous volatility in market and gold can even fall 40-60 pips down or jumps 40-60 pips up. So you have to keep equity in your account and you should be mentally prepared for sudden and unpredictable downfalls.