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Like the birds that head south for the winter, at the moment, it appears gold, silver and platinum are going to join them. The facts are simple, every rally attempt has failed. The metals are headed lower and selling rallies is the best strategy until it’s not.
Understanding markets is essential when you are trading; following the trend is the key to success. The trend for metals is lower; every time they rally to a level of resistance, they should be sold. We are aware that trends change, so all trading calls made are in the present based on the price action now.
Markets and trends can change in a heartbeat, but the most profitable way to trade is with the trend until they do. We know the longest time frame in gold is higher, which is why we hold physical. However, if you want to benefit in all markets, hold physical and trade paper.
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.
By Todd 'Bubba' Horwitz
Contributing to kitco.com
Buy, Sell Gold and Silver, with Free Storage and Monthly Yields
