How to make money on gold and how much profit can you make trading the precious metal?

Gold is traditionally considered one of the best options for long-term investment, with the price of the precious metal rising every year.

But if you want to not only protect your capital from inflation, but also make money on gold, then the " Buy and Hold " strategy is not suitable.

You need to trade precious metals using the full potential of price movement; only then will you be able to earn a lot of money.

Typically, the price moves in a price corridor, where periods of growth alternate with periods of decline, so the overall price movement is much greater than the distance between the minimum and maximum .

If you analyze the distance between the Buy and Sell marks on the chart, you will see that it is much smaller than the sum of the distances across all the segments that characterize the sections of the upward trend.

If you want, you can also open short trades, then the profit will increase even more, but with gold, I try to only trade for long positions.

That is, the essence of the strategy for making money on the ZAUUSD pair is quite simple:

• We observe the price of gold for several days (or better yet, weeks) and analyze the patterns of its movement
• We open a buy trade after another correction of the uptrend
• We close the deal after the price growth slows down or a new correction
• We wait for the correction to complete and open a buy trade again

This is a much more profitable way to earn money than buying and waiting several years for a better price to sell. Obviously, this strategy can only be implemented through a trading platform .

How much can you earn on gold?

How much you can earn on gold depends on a number of factors – whether you use leverage , how often you open trades, and how fast the price moves.

In my trading, I try not to use high leverage, usually limiting myself to 1:5; this size allows me to feel more confident in the market.

On average, one purchased ounce earns $40-50, meaning a 10-ounce trade costs $400-500. Typically, four to five such trades are opened per month, resulting in a total profit of approximately $2,000 with a monthly deposit of $8,000.

For me, this amount is quite sufficient, since I also have profits from trading other assets, but if you wish, you can multiply the amount of earnings by increasing the leverage or the size of the trading deposit.

Trading is conducted on the RoboForex broker account.