When Not to Trade Gold: A Ten-Point Checklist Before You Click Buy or Sell

Most improvement in trading comes from not taking bad trades. These ten conditions account for a large share of avoidable losses in gold. If two or more apply, skip the trade.

The checklist

1. A high-impact release is due within 30 minutes. NFP, CPI, a Fed decision. The trade you take now will be decided by the number, not your analysis. The trade plan tool shows today's calendar.
2. It is within 15 minutes of the daily rollover. Spreads widen; see 5 p.m. New York.
3. The spread is several times its normal size. Something is wrong with liquidity.
4. You can't state the setup in one sentence. "It looks like it will go up" is not a setup.
5. There is no stop-loss level you'd accept being wrong at. If you can't say where the idea is invalid, you can't size the trade.
6. The position size comes from the margin you have, not the stop. Size from risk with the position size calculator.
7. You are trying to win back a loss. That is revenge trading.
8. You have already hit your daily loss limit. Stop for the day.
9. You are tired, angry or celebrating. All three lead to bigger, worse trades.
10. You are trading because you are bored. Boredom trades are almost always low-quality.

Why skipping trades works

Every trade costs spread, sometimes commission and slippage. A trade with no edge is not neutral; it is a guaranteed small loss on average. Removing low-quality trades raises your average result even if you change nothing else. See the real cost of a gold trade.

Make it a habit

• Print the checklist or keep it next to your platform.
• In your trading journal, mark which items applied to each losing trade. After a month, you'll know your personal top three.
• Set a rule: two ticks on the list means no trade, no exceptions.

Questions traders ask

Isn't missing trades a cost too? Yes, but a missed good trade costs you a potential gain; a bad trade costs you real money. The asymmetry favours skipping when in doubt.

What if my strategy is news trading? Then item 1 becomes a plan, not a ban: define exactly how and when you enter around the release.

How many trades a week is normal for gold? It depends on your strategy. Swing traders may take one to three; intraday traders more. Frequency without quality is the problem.