There are times when markets do exactly what you expect of them. That is the case for Gold, Silver, and Platinum; they have consolidated while pulling back to support. This action could not have been scripted any better and is setting up for a much bigger move higher.
Gold has a very high probability of making new all-time highs, while Silver and Platinum look ready to make multi year highs. The price action has been strong, on point and building momentum. The bigger move will probably take a couple of more weeks as it’s building a solid base.
Markets never come with money back guarantees which is why you still must exercise patience, caution, and a willingness to except that we are wrong and exit. We are long and have no expectations of failure, but we are always prepared for it. Money management trumps all.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
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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