Gold and silver failed to breakout to new levels keeping both in a downtrend. The footprints that are left by price action are clear: gold and silver have a higher probability of going lower. There is no logical reason to be long the metals until the trend has turned.
When you are trading, you only care about the time frame you are trading. You must keep emotions and opinions out. All markets move based on price and the map that is left behind, it’s that simple.
Losses are established on entry of a trade which is correlated to the time frame you are trading. Gold and silver trade like every other market, goes higher, lower and trends. Eventually gold, silver and platinum will be higher. But until proven otherwise, the trend is down.
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.
