Nov 7th 2019, Silver Chartbook: Principles – solutions to any problem

Principles – solutions to any problem

You will find the word principles being used often in our publications. This is based on the phenomenon of market speculation to be counter intuitive. We can solve most problems by relying on our experience and gut. It is by far the worst to do so in investing. Usually we orient ourselves measuring against peers. So who knows if the neighbor tells the truth about his riches and has not gotten them through inheritance. Which elaborate stories about market speculation success are true?

Think tanks filled with chess world champions and rockets scientists have failed to harness the elusive market. This means a strong left brained approach isn’t the solution either. How about modelling those who succeeded with proven record? Well, if you followed funds who had astounding track records in the multi decade bull run and invested at the end of the last century you also lost your money. Some of these trend following champions went belly up. As trend followers, they had no clue of how to trade sideways or declining markets. Luckily there are principles – solutions to any problem.

We need trading principles

Speculators need principles that guide them and provide that stability that is missing to own confidence. A vital ingredient to success in market speculation. Just like we lack a sense to measure time and need devices to measure it, we also do not have any intuitive relation to probability. Intellectual reflection simply isn’t enough to act upon such needed concepts in a proper manner. We need devices like watches to become confident in a surrounding where our senses have no bearings.

You will find by reading through our past publications in this silver series as well as our weekly crypto currency chartbook a trading principle in almost each article.
It is the sum of these principles that create our high probability of predictability of the market, as well as our stable hit rate and solid risk/reward ratio. Above all, it allows for a calm mind to execute trades.

This approach is most needed in environments like the recent uncertain topping/continuation formations to stay emotionally neutral.

Daily chart, silver/US Dollar 10/31/2019, “sector strength rotation” :

Silver in US Dollar, daily chart as of October 31st 2019

Silver in US Dollar, daily chart as of October 31st 2019

On October 31st the precious metal sector experienced, not untypical at the end of a month, strength rotation within its group of instruments. Gold in particular showed first signs of weakness. This alerted us to reduce our exposure size of capital towards the market. We posted our exit point live in our telegram channel.

Principles – solutions to any problem, Silver, 60 min chart, 10/31/2019, “more profit taking”:

Silver in US Dollar, 60 minute chart as of October 31st 2019

Silver in US Dollar, 60 minute chart as of October 31st 2019

This 60 minute chart shows more clearly the specific exit timing within the trading day. Three days later the last 25% of exposed capital got stopped out at break even entry levels (see quad strategy).

Silver in US Dollar, Principles – solutions to any problem, November 6th 2019, daily chart, “weekly long entry”:

Silver in US Dollar, daily chart as of November 6th 2019

Silver in US Dollar, daily chart as of November 6th 2019

Prices retraced back within the supply demand zone (= prices between the green and red horizontal lines). This warranted again for an entry. It is this cat and mouse game in struggle zones between time frames and possible continuation patterns on the one end and topping formations on the other, where the mind can play tricks. Trying to find direction of the market is simply not the solution for the speculator. It is here where a neutral stance is necessary. Subsequently market participation being solely based on high probability and low risk entry points.

If you find the time to read through our past publications and contemplate the various trading principles, you have in their sum a true edge. Consequently a true guideline to maneuver through the vastness of market variability, a roadmap. By stacking these principle edges you will find yourself a step closer to be independent of the good opinion of others. It is this independence that stops the chatter in ones mind of whom to follow and what to belief in a field of constant uncertainty. It is like wearing a watch and measuring time, rather than guessing what time it might be.

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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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