Gold and silver in never-never land
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
One thing we can take away from the recent trade in gold, silver and platinum, it sucks. The price action has been about as bad as it gets. The metals, although in an uptrend, have wandered around the mean as if they were lost.
Understanding markets and how they trade is an important asset for traders and investors. The current action creates frustration, impatience and bad decision-making. Traders want instant gratification, which markets never guaranty. The recent activity is almost designed to put you to the test. Can you follow the game plan?
This type of action has been happening for thousands of years; markets are driven by emotions. Humans will fail the emotional test 90% of the time. As the commercial says, the mind is a terrible thing to waste, but frustration and losses will drive traders to poor decision-making.
Trading your method or mine requires you to follow the rules that have been designed for your methods. We trade our algorithm and will remain long for the duration until the algo turns short. Short-term emotional decisions 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.
Thursday 11/04/21 at 10:00am EST, I will present our new portfolio models that use Mini/Micro Futures, including Gold, Silver, and Bitcoin