Feb 1st 2020, Silver Chartbook – Build on your strength

Build on your strength

It might look like a struggle with the markets when trying to participate in the money game. That isn’t really the case though. It is a struggle with oneself. What to do when in doubt? Build on your strength.

As a practical solution it is always good to zoom out. Get some distance between oneself and the market and back test ones performance. In this case not to review for improvements but for a pat on the back. Meaning, one is looking for ones strength and and is leaning on it.

In our case the performance over the last seventeen months has been solid from an entry perspective.

Build On Your Strength – Seventeen Months Of Silver Trading In Review:

Seventeen months of silver trading performance as of January 30th 2020

Seventeen months of silver trading performance as of January 30th 2020

With a hit rate of 93.3%, one way to gain confidence is the knowing, that one doesn’t have to be fearful of taking additional trades even if a loosing trade should become part of the trade sequence. In addition the two loosing trades we experienced were small. The loss of -1.02% and -1.31% versus the average runner percentage return of 5.52% presents a low risk model that again allows to step aggressively into the market if warranted.

 



Gold in US-Dollar Weekly Chart – Gold Showing Directional Strength:

Gold in US Dollar, weekly chart as of February 1st, 2020.

Gold in US Dollar, weekly chart as of February 1st, 2020.

Gold is in a clear uptrend. We took another 3.17% profit on a reload runner, posted live in our telegram channel on January 27th.

Silver in US-Dollar Weekly Chart – Silver In A Sideways Range:

Silver in US Dollar, weekly chart as of February 1st, 2020.

Silver in US Dollar, weekly chart as of February 1st, 2020.

While gold broke to the upside, silver prices above US$18.50 get strongly rejected and pushes this precious metal into a sideways range.

Build on your strength

When confronted with a possible dilemma of internal debate of participating into a market situation or not, taking a step back is the first remedy. Emotions can flair up in situations like the presented diffluence between the gold and silver market. “When in doubt stay out” is certainly a rule of thumb that can help, but the more refined solution is to build on your strength. Looking back through ones trading history and building a case based on ones strength might provide the necessary fuel to be more clear minded whether to participate or stay on the sidelines.

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About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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