Gold and Silver reversed trends last week but were under heavy pressure on Friday. One of the biggest faults with traders and investors is they get too emotional when markets go against them. The keys to remember are in an uptrend you want to buy at support levels, in a downtrend sell resistance.
Emotions, news, and opinions have no place in markets. The old saying that the trend is your friend which works if you are patient. Of course, when it comes to money, patience is hard to find. Often trend traders will get chopped up a little in consolidating markets, but you must follow the rules.
Looking at Gold and Silver, we see support levels based on December futures at 1760 gold and 23.00 Silver. We would consider these solid support levels that should hold and create a rally. There are no guarantees, but markets will always eventually trend.
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
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