Gold and silver struggles continue
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The struggles for gold and silver continue with their inability to sustain any rally. None of this should be a surprise to anyone. We never know exactly when a market can turn, but we can certainly observe and understand the price action that they bring.
For the past few weeks, the metals have been anything but precious. They have been weak and ugly. Too many traders like to look for the reasons basing their decisions on fundamental hogwash. Price action reads the information long before the news reports it. Fundamentals are worthless to traders; however, too many try to read into the market while tying in their opinions.
Those who look for reasons why markets move instead of understanding that information is faster than the markets and traders’ price in the news long before it is reported almost always lose. Trading is not complex if you can leave your ego and opinions at the door. It is very hard to make money when you are trying to dictate to the markets rather than reacting to them.
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.