Silver, Weekly Chart: Wrong Data Wrong Results
The weekly chart above shows the last trade we executed on silver. The entry setup was posted ahead of time in our weekly chartbook. (Entry 5/1/20 at US$14.73, Financing target 5/7/2020 at US$15.25, First target 5/11/2020 at US$15.60, Final target 5/18/2020 at US$17.25)
When self educating, it is helpful to model people who provide simple but precise data. Core principles of market behavior have not changed throughout time. Consequently release date of a book or technique is of no influence to its value. If anything, older materials can be more often principle based.
Most educators try to brand their teachings by renaming standard patterns to their own classifications which does nothing else but confuse and delude. Trading is already an art form meaning chart interpretation is tricky and not precise. As such precision in the rudimentary principles and basic commonalities is essential. Only then you can expand from there to create true edges!
We encourage to read core materials even if these books do not come cheap.
Here are our Top 5 books for beginners:
- Mark Douglas – Trading In The Zone
- Edwin Lefèvre – Reminiscences of a Stock Operator
- Van Tharp – Peak Performance Course for Traders & Investors
- Jack Schwager – Market Wizards: Interviews with Top Traders
- Ari Kiev – Mastering Trading Stress
We also invite all new traders to ask questions in our free Telegram channel. Without clarity on what makes markets move, a new market participant finds him- or herself in a house without any solid foundation and as such quickly under a collapsing roof.
Silver, Monthly Chart: Range Versus Direction
The monthly chart above shows how silver prices have faster than usual cut through their typical sideways range (US$13.50 to US$18.75). This allows for speculation that a range break to the upside has a higher probability than the usual approach of the US$18.75 resistance zone. Especially as “V” shaped recoveries have a high likelihood to temporarily trade sideways and advance in their direction after a brief dip.
Range versus direction
This is one of the absolute core questions rarely answered. Seeing clearly if a market is ranging or in a trend seems an easy task but eludes most. It determines more than 70% of ones trading rules. Anticipating range breaks or trend reversals determines if indicators or oscillators are to be used. It is also the decisive factor which exits and entries are valid to be executed. One rarely finds this addressed in modern YouTube videos. Principle based answers to this core question are an essential asset for the astute market participant.
Silver, Daily Chart: Wrong Data Wrong Results – Keep it simple
The daily chart above shows an entry opportunity coming up to add to larger time frame positions. With a directional move in play and three legs up so far, a retracement here is a possibility. This would allow for an entry for a final 4th blow off leg.
As of right now we find long term ownership of silver and gold to be the most valuable asset of wealth preservation. This does not require in depth knowledge of advanced low time frame trading principles. A top down approach in time frame is essential.
One of the main problems with trading is the fact, that it is counter intuitive.
It isn’t technical analysis that is the core of financial success. It is psychology and money management. New market participants are lured by holy grail offers, mathematical solutions to beat the game, and an endless array of false promises of all sorts. The typical route of a new trader is underestimating the time necessary to find an edge in the markets. He embarks on a multiyear focus on creating a good entry strategy. The logic behind is simply that entries come first. Truth of the matter is that it is exits that determine profitability much more. And as pointed out, psychology and money management supersede that by far. In the light of this, a business plan is the basic foundation of a good starting point.
Wrong data wrong results
The less educated crowd of new market participants has always been lining the pockets of the professionals. The learning curve has been always a steep and costly one in this specific profession. Easy access with the simple push of a button on a computer was a lure at the turn of the century. It allowed access to the money of the masses. There to be quite a difference between a lure and pure manipulation.
In today’s world it isn’t even talked about anymore that trading is a profession. Consequently requiring in depth knowledge, time and education. Millennial’s are burdened with an expectation to be millionaires before the age of 25. Operating systems have switched from alphabetic searching to manipulated swiping on screens. The underlying intent is subconscious branding and sales. Algorithms reroute our choices. You still falsely belief to have a library at your feet. In the end, there is nothing wrong with watching YouTube videos as long as you don’t think that spending money on trading education is stupid and reading is only for old folks. Just be careful by using YouTube´s sidebar to not get dragged down the rabbit hole!
Creation and protection of wealth is a fundamental right
At Midas Touch Consulting we try to demystify non principle based wealth preservation offers. We try to educate and support each individual. This especially at times of rapid change, where one is easily overwhelmed with the magnitude of choices to be made on a daily basis. We advise on short and long term options of rule based market participation. We belief that everybody has the right to a less cumbersome future. A creation of family and retirement safety and abundance.
Creation and protection of wealth, in an in principle abundant universe, seems to us a fundamental right.
We post real time entries and exits for the silver market in our free Telegram channel.
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