Difference between currency and gold
Don't touch gold with the same feel as USD/JPY. You'll be blown away in an instant
The sense that worked for USD/JPY does not work for gold.
The meaning of the same “width of movement” is completely different.
The meaning of the same “width of movement” is completely different.
When someone with some FX experience starts trading gold (XAUUSD). “It’s the same chart analysis, I should be able to do it”—thinking that, they enter with the same sense as USD/JPY. And they get blown out in an instant.
This is the most common failure pattern in gold. The reason is simple,the price movement characteristics are completely different between USD/JPY and goldIf you touch it with the same sense, it’s natural to get blown out.
If you want to win in gold, you first need to physically understand this difference. This time, I will specifically explain why the USD/JPY sense does not apply to gold.