Gold and Silver are flying higher again this morning, thankfully we were able to reverse our positions before this big rally began. We reversed April Gold to long on December 8th at 1872 and March Silver on the 17th at 25.95. This morning April Gold is trading 1906 and March Silver 27.00.

As we have written many times in the past our trading positions have nothing to do with our long-term opinions of these metals or the fact that we are trying to capture most of the gains in anything we trade. We can’t sell tops or buy bottoms since our trading is determined by our algorithm. Our goal is to get 60-80% of all moves that usually work out well. As an investor, I am always long physical metals with no intention of selling.

Too many believe they can pick tops or bottoms which is a fool’s game. The pundits and so-called experts who make ridiculous calls are misleading the public with their own objectives whatever they may be. We are interested in facts over a long period of time. For now, Gold, Silver and Platinum are in up trends and we are long.

At some point that will change, and we will be short again as traders, but for now we are long as both traders and investors. The sooner you understand that asset classes don’t go straight up or straight down the better off you will be. Those who make calls such as 5000 Gold are imbeciles. There is no doubt Gold will someday trade at 5000 and Silver will make all time highs again but not today.

Trading is a math model; markets move one level at a time. When you finally realize that you are setting yourself up for success not failure. Emotions and opinions are the number one problem in the trading world, when you can master that, you are on your way. It’s that simple!

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

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