Markets are always a challenge and never make it easy. Day traders get tortured by price action like we have seen the past few days in Gold, Silver, and Platinum. For the fifth day in a row, the metals looked poised to run and failed miserably.
This type of trade toys with the emotions and too many traders are too emotional. Anytime money is involved emotions run high on both sides but especially when losing is involved. The most important trait to develop as a trader is to watch the trade. Gold has made higher lows for the past 10 days. Silver has been consolidating with an upward bias and Platinum looks strong.
The trait that all traders must develop especially those who trade metals are the ability to trust the price action. After all, no one knows for sure what will happen next. We base the future on the recent past. Metals traders, claiming manipulation, are expecting the metals to fly. However, like all markets, price discovery will take place pushing higher or lower.
With our algorithm long and positive price action we expect this market to break out to the upside. This is where investors should not care about price day to day, you have no control. Know that history tells us that metals appreciate over time. This time won’t be different; it’s all about patience.
In all markets price action determines what will happen in the next day, week or months. 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.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
On Saturday October 30th I will be presenting our part time futures day trading. I would love for you to join me. You can register for this free webinar below.