Reasons for day trading
People who don't care about the spread are gradually eliminated in order
The spread on gold quietly keeps eroding your profits.
When trading gold, do you pay attention to the spread? "The spread is just a few pips. Compared to profits, it's an error"—if you think that way, it's dangerous.Traders who underestimate the spread will quietly, in order, be eliminated.
Gold spreads tend to be wider than currency pairs. Moreover, they fluctuate significantly depending on the time of day and market conditions. This hidden cost slowly gnaws away at your performance.
This time, we explain the importance of the spread in gold and how to counter it. It's a quiet topic, but neglecting it can turn trades that should be profitable into losses.
The spread is a "cost that occurs every time"
The danger of the spread lies inthe cost that always incurs with each entry. While one trade may seem small, if the number of trades accumulates, the amount becomes nontrivial.
For example, if the cost of the spread is incurred on one trade. When this accumulates dozens or hundreds of times per month, the total becomes substantial. Moreover, whether you win or lose, you pay for every entry. This "invisible fixed cost" reliably lowers your total profit and loss.
People who ignore the spread do not include this accumulation in their calculations. They fall into the trap of thinking "it's small per trade," and end up paying a large cost annually. This invisible cost slowly chips away at your capital.