Gold, Silver and Platinum took it on the chin Tuesday, all three giving back Friday’s gains. With these quiet markets plus the Jewish holiday the action is not surprising. It’s obvious the markets are waiting for a reason to react and break out of these ridiculous ranges.
We do not know what they are waiting for, all we can establish is the current trends. Gold up, Silver and Platinum down. However, trading has been slow and painful. This type of market action creates problems for most especially those that lack patience to allow the markets to play out.
We have written many times, investing and trading are different but do have similarities. Both require patience and the ability to let the markets play to what you are seeing. The slow grind typically forces traders to make bad decisions by forcing action. Remember, you must allow the market guide you.
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
On Saturday September 4th I shared a webinar on Hedging, Futures and Day Trading. The recording is below: