Gold and silver Dealing with Ignorance
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silve continue to be under pressure; as much as the bulls deny the facts, the trend is lower. For those who read my regular commentary, you know I'm a believer in metals, gold, silver, and platinum. I buy physical metals often, which I will hold forever. However, trading is an entirely different venue; I'm short today and could be long tomorrow.
Traders are taught not to have an opinion but to trade the price action, which allows them to make money on both sides of the market. Those who hold physical metals should not be concerned with the day-to-day action. When you commit to buying physical hard assets, you are doing so with the intention of holding for an extended period.
This is a common mistake in the trading community. People get their views confused versus dealing with what is happening now. When trading, you must take emotion out of the equation; otherwise, you have no chance for success. Gold will go much higher along with Silver and Platinum, but not today. We remain short and comfortable.
For the hates who can't handle the truth, I feel sorry for you. Trading and investing have no correlation, but the haters want them to be. Sorry, you are out of luck, markets trade up and down and usually trend in one direction or the other. If you think you are smarter than the market, you are wrong.
In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Here is the recording from Monday's Call