Here we go again, the gold bugs will be out touting how high gold is going. As we have written in the past, there is no doubt Gold, Silver and Platinum will be higher in the future. However, for now and today the trend is lower and rallies should be sold.
You must recognize if you are making a trade or an investment, the big problem is most can’t identify who they are in the trading/investing world. As we have witnessed recently, people tend to sell their strong holdings while holding onto the garbage. Although we are big fans of physical metals and will always be a buyer, the trends are lower and should be sold.
One of the hardest thing investors/traders must deal with is taking a loss. As stated, many times proper investments shouldn’t be sold and should not be overextended in monies used. Traders using level must take losses when they come without fail.
Until the trend changes Gold, Silver and Platinum are headed south. Great opportunity exists for those who can separate opinion from fact. Too many are so opinionated they can’t see the trend through their opinions. We are short and will be until the trend changes, it’s that simple.
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
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