Many forex trader simply do not know this fact that they can trade other instruments and contracts from their metatrader platform that they use to trade forex. You can trade oil, gold, silver, stock prices, and even stocks from most of these metatrader platforms.
Just right click on the Market Watch window where the currency pairs are displayed and it will show you the list of other contracts that can be traded from the MT4 Platform. As a trader, you should know this opportunity keeps on shifting from one market to another.
This shift in opportunity gives you the chance for market timining. Market timing means that you spot a trend developing in the market. You position yourself for taking advantage from that trend. You ride the trend to get as much profit as possible and get out before it become late.
Now, gold is in an unprecedented bull market. Gold prices are at their historical high. Gold prices are being driven hgh by the abuse and debasement of the fiat currency that has been going on. People are afraid that fiat currency is going to lose value. After all it is just a piece of paper only backed with your own confidence on it's purchasing power.
So, these are the factors that are driving gold prices higher and higher. Some expert are competing gold prices to double from $ 1,200 per ounce to around $ 2,500 per ounce in the next six months. This is a historic opportunity. You should think about trading gold along with forex.
Gold is also known as Anti Dollar. Both have a strong negative correlation. When gold prices go high, Dollar gets weak and when Dollar gets strong, gold prices crash. This is the way it is. You can use this fact to hedge both your positions in the gold market as well as the currency market.
You can trade USDCHF pair along with XAUUSD. XAU is the symbol of gold. So essentially trading gold against Dollar is similar to trading any other currency against Dollar.
Now, you can also trade crude oil from th same MT4 platform. There are currency pairs that have strong correlations with oil like the Canadian Dollar that has a strong correlation with oil. Whatever, right now, oil prices are down but as soon as the global economy comes out of the recession, oil prices are going to climb again. Some experts are saying that oil prices can reach as high as $ 200 per barrel. Whatever, with the dwindling supplies of crude oil under the earth, the days of cheap oil are over.
As a trader, you should master trading these three markets, gold, oil and forex. Now, good news, if you have been trading forex, you can easily start trading gold and oil. There are traders who have developed Expert Advisors that can trade these markets.
John Campbell lives in Malta and is a full time professional gold, oil and forex trader plus a system developer who has developed an Expert Advisor Collection that can trade gold, oil, forex and a host of other contracts that includes stock indices as well as commodities . You should take a look at his EA Collection.