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Gold, silver trading doesn’t get much worse

Commentaries & Views

One thing we know for absolute certainty: trading is difficult. We have challenges everywhere, from opinions that control our trades to lousy trading conditions and emotions. These are the facts traders battle every day, the biggest being their emotions.

Based on our algorithms and what we can see as traders, the trend is higher in gold, silver and platinum. However, we can also see the sellers trying to regain control, keeping the metals in the torture chamber of congestion.

We remain long gold and silver, looking for the breakout to the upside. We would also be long platinum except for the liquidity issues. There is a 100% probability that gold, silver and platinum will break out of these ranges and a 66% probability it will be up. However, we must be prepared to be wrong and willing to exit a bad position.

There is also a major difference between trading and investing. As an investor, I don’t care about the day-to-day swings of action; history tells us there will be higher prices making investing emotion-free. Trading brings too much thinking unless you have a plan and set of rules to follow without fail.

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.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.