One chooses to be aware that consistently selling lows and consistently buying tops is not realistically possible. This is especially true for persons trading contracts online. Therefore a means is needed for managing the exigencies contingent to that fact.

     Success in futures trading consists mostly of managing risk and minimizing loss. If your study and action have been sound, increase will occur.

     If you can handle the psychological and emotional aspects, making money in gold futures is very simple and very easy. Some would say it's a system, but 'process' is more accurate.  The process consists of two elements. (Element One:) Ascertain the direction of the primary trend. Element Two consists of two parts, each of which is essential and very important. (Element Two, Part One:) If the primary trend is going up, take a position, (Element Two, Part Two:) in such a way that when price fluctuates you survive the low. Keep enough money in your account to assure this.
     The process ends when you cash out. I suggest the following.
     Constantly be on the alert for indications which mandate cashing out. This is an extremely complex matter, and I'll leave the details to you.

 

Here's the formula I use in figuring out the maximum number of contracts I can buy and still be reasonably safe (in other words, without receiving a margin call):

 

S = Spot

R = Reserve Point (lowest low that is reasonably to be protected against. This is subjective.)

E = Number of dollars (not including "M") needed for one contract to assure "R"

T = Total money in account

M = Maintenance Margin Requirement

C = Total number of contracts you can reasonably hold in this account, given these stipulations

 

Such that,

 

(S-R)100 = E

 

Then,

 

T / (M+E) = C

 

     This process assumes that you will hold onto your position and not trade in and out, that the price will fluctuate, and that the total money assets in your account will multiply numerous times and decrease to a fraction numerous times and that throughout all this you will hold. Prefer to hold contracts of distant months. During April, buy December contracts. During December, buy June contracts. Sell out sometime in May, unless there are good reasons to stay in. Study the situation and decide for yourself. The idea is not to make quick profits over and over, but to multiply your money many times in one long process, at the end of which you are then rich. In my case, I followed this procedure and multilied my original stake by a factor of one hundred. Now more. I could never do that by trading in and out. In deciding what price is likely to be "R," I typically allow for a one-day sudden price drop of more than one hundred points, and as price progresses upward, I increase this amount. It is possible to lose a great deal of money following these procedures, or any procedures, but that problem is yours, not mine. It is up to you to decide when to sell out and why. I have experienced loses, and it is my responsibility, not yours, to identify the cause. I am not complaining to you, so don't complain to me. Each person's method of deciding is different. I have enough to do just understanding my own and dealing with that. While I wish you well and hope you succeed, you are not my responsibility. You are your own responsibility, so take charge of yourself.