Mar 9th 2019, Silver Chartbook

A trade on its way

Silver prices moved as anticipated and provided entries for the weekly player as well as the shorter term swing trader. “Silver-Opportunities” from last week´s chartbook manifested as predicted. A trade is on its way.

The following 60 minute chart shows the weekly entry (1) on very low risk. Support held for 2 days and we exited at break even levels, anticipating lower entry levels. Holding this position with a bit larger stop, from a weekly perspective, would have worked out just fine as well. We are simply very risk averse.

The day trade entry followed shortly thereafter (3). Prices advance quickly form the entry levels and provided for risk mitigation, what we call a financing point (4). With our Quad Exit Strategy we took half of the position off the table (profit taking). At this point the stop was moved to entry levels. On Friday the 8th of March, prices advanced further and our next target was met (5). We took another 25% of the position size off the table.

This exit provided for a profit of over 2 percent (5).

Silver in US Dollar, 60 minute chart as of March 9th 2019 a

Silver in US Dollar, 60 minute chart as of March 9th 2019 a

The precious metal sector often is moving in conjunction, therefore we had similar setups for gold. Like the silver trade, we posted the Gold entries and exits in real time in our Telegram channel as well. This was a mutually successful trade.

This 60 minute chart shows the very low risk participation on this Gold trade:

Gold in US Dollar, 60 minute chart as of March 9th 2019 b

Gold in US Dollar, 60 minute chart as of March 9th 2019 b

We now find ourselves in the ideal position of participating in the market:

  • extremely low risk entries
  • early risks mitigation through partial profit taking
  • next target met for substantial profit taking
  • 25% of position size remaining within the market for potential larger profits at zero risk
Gold in US Dollar, daily chart as of March 9th 2019 b

Gold in US Dollar, daily chart as of March 9th 2019 b

In addition of these benefits having money exposed in two instruments within the same sector provides an additional hedge.

It is these opportunities that we seek after, where prices move rapidly away from entry levels initially, and the larger portion of the position size is exposed only briefly. Taking care of risk this way allows us to participate in the market over and over again. Stable, smooth equity curves with hit rates supporting psychology and continuous profit accumulation, are the results of disciplined market participation.

No one knows the future but with good preparation one can find oneself well positioned:

Silver in US Dollar, daily chart as of March 9th 2019

Silver in US Dollar, daily chart as of March 9th 2019

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By | 2019-03-10T16:53:03+00:00 March 9th, 2019|Tags: , , , , , , , |2 Comments

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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