Let’s welcome John Meli, a currency trader with Money on the Floor, as he joins us (almost two years to the day), after his first appearance on the How To Trade It podcast!

John Meli was a volunteer firefighter, martial arts enthusiast, and plummer, before starting his own general contracting business.  However, when the recession of 2008 hit, John knew he needed to pivot and find a new way to support his family. It was then that he discovered the stock market. 

As one of Casey’s early students, John began to excel, and now, many years later, is a seasoned prop firm trader and trading coach.  In this episode of How To Trade It, John shares some practical and personal advice on scalping Gold.  You don’t want to miss it!

 

Why Trade Gold

• John explains why he is passionate about trading Gold.
• Gold offers the potential to make more money than other pairs.
• The importance of going with the trend and staying patient.
• Gold is always moving, making it an exciting instrument to trade.
• The challenge lies in not getting manipulated by Gold’s price movements.

John Meli’s Keys to Successful Gold Trading

• Patience is crucial; wait for the right setup.
• Be prepared to exit a trade, if the market shows signs of moving against you.
• Understanding Gold’s patterns, such as M’s and W’s, and its tendency to trend.
• Recognizing key support and resistance levels (structure).
• The significance of knowing where you are in the market at all times.
• Emphasizing the importance of price action over relying solely on indicators.

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Trading Gold Patterns

• The discussion touches on various patterns and their applicability to Gold trading.
• John advises traders to learn multiple patterns for better results.

Trading Strategies 

• Casey and John plan a one-day challenge to pass a prop test by trading Gold.
• The strategy involves focusing on Gold during the London and New York sessions, using structures and oscillations around the 50-moving average.
• They emphasize the importance of trends and flexibility in trading.
• Trading during Fridays and taking advantage of news-driven moves is discussed.

Trading Education 

• John explains how Money on the Floor Currency Trader offers coaching and education for traders.
• The emphasis is on teaching traders how to analyze and trade the market effectively.
• The importance of building a trading foundation before relying on indicators.
• The importance of using the right tools and knowing how to use them effectively.
• John mentions the necessity of investing in better tools once you’ve mastered the basics.

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Gold, Gold, and more Gold

Gold, with its unmistakable luster and scarcity, has been cherished by civilizations throughout history. Its enduring value stems from a combination of factors, including its intrinsic beauty, malleability, and resistance to tarnish. In addition to its role as a safe haven, gold is widely used in various industries, particularly in electronics and jewelry manufacturing. This dual demand—both as a financial asset and a raw material—profoundly influences its market dynamics.

Gold prices are primarily influenced by macroeconomic factors. For instance, during periods of economic uncertainty, investors flock to gold as a secure store of value, which can drive up its price. Conversely, when the economy is robust, gold may see less demand as a safe haven and its price may stabilize or decline. Central banks of various nations also play a pivotal role in influencing gold prices, as they often hold significant gold reserves and can impact supply and demand dynamics through buying and selling.

The gold market operates 24 hours a day, five days a week, with major trading centers in London, New York, and Shanghai. Investors can access gold through various financial instruments, including futures contracts, exchange-traded funds (ETFs), and even physical gold bullion. Technical analysis and fundamental factors such as interest rates, inflation expectations, and currency movements are critical tools for traders navigating this intricate market. Whether you’re a seasoned trader or a newcomer, understanding the multifaceted nature of gold is essential for success in this captivating corner of the financial world.

Connect with John Meli

• Website
• YouTube Channel
• Telegram

Connect with Casey:

• Website:  https://caseystubbs.com
• YouTube:  https://www.youtube.com/TradingStrategyGuides
• YouTube:  https://www.youtube.com/caseystubbs
• Facebook:  https://www.facebook.com/TradingStrategy
• LinkedIn: https://www.linkedin.com/in/caseystubbs
• Twitter: https://twitter.com/caseystubbs316
• TradingStrategyGuides.com: https://www.tradingstrategyguides.com/
• Global Prop Trader: https://globalproptrader.com/ 
• Email: podcast@tradingstrategyguides.com

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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.