For the past few days, we mentioned that Gold, Silver, and Platinum looked like they were getting ready to reverse. Wednesday’s rally pushed them all to reversals and we are now long. Price action dictates market direction.
After struggling for weeks, Gold has finally taken off to the upside. Like all trends and market moves this could last for an extended period or could fail. If you are going to trade, you must be prepared for adverse price action.
All metals look good which is amazing based on how bad they looked a few days ago. The only concern we have in all markets are the false breakouts and moves that show up out of nowhere. Remember, we are always long physical and will trade paper on either side.
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.