As we sit here holding short positions in Gold and Silver, the last couple of days have been painful. Yesterday we wrote that a much bigger selloff was coming, yet both Gold and Silver tried to accommodate selling off from their highs only to be up sharply this morning.
We will be short through today and will not change until the earliest Sunday night. The price action looks like a mix between short covering and chasing. However, it would be nice to be long instead of short, but we are mechanical traders and will not have an official change until the close of business today.
Days like today combined with big price moves usually leads to disaster for those who get too emotional. Traders must learn to accept losses and being wrong. You must trust your methods, know your win percentage and live with the trades your model provides.
Those who continue to trade the news and try to pick tops and bottoms always end up in the bread line wondering how they flushed their money down the toilet. Emotions and opinions have no place in the world of investing. For the rest of the day we will be short Gold, Silver and long Platinum.