What Happens To Gold And Silver Next? Look Out Below?

silver and gold miners looking very tired.... dont get excited as I said earlier this AM.

The worst thing you want to do is get emotional and excited about your positions. If they are up, thats fine, leave it at that. If they are down, thats fine, leave it at that.

There is no room to talk all excited about financial assets. Dont let your imagination run, dont start thinking about all the money you are going to make, ...

rather think about what you could lose, what is price doing, where is money flowing, etc.

The worst thing tho is to get emotional in markets. I cringe whenever I see folks get excited or conversely, angry when talking about financial assets/markets.

@ilike,

Did you figure out where Livermore talked about selling at a percentage? I couldn't find it in the book.

I'll look for it...all I can figure is Livermore must of had more than a handful of stocks he had big profits on, then, they turned sour...fast..on the classic 1 day reversal. Happened with me & AMBA last May...the drop was incredibly fast....after weeks straight up.

What a sloppy day! I'm up early to let the cats out..market just open in NY...spot up, mild rally on poor USA data ...was up for a few hours, doing well....(my stocks mixed, 1/2 up, 1/2 down..in my basket of miners)...then, started it's dive downward...ended crappy, even with the Dollar down 0.24%. Geez...cannot complain 1 bit...really, as long as gold above 1300, and silver above 19, with the stock market as high as it is is a blessing...
My "stock of the Week" award goes to....drum roll pleaseeeeeee..Excellon Resources...UP 8.87%, today and on a momentum tear up...seems like a lot of people have discovered this hidden gem. Started the week Monday at about $1.09...ended 2day @ $1.70..up 55%

Montana.... 1350 - 1335 is just over 1% of a drop in price.

If you were buying physical the premiums alone would kill you if you sold anytime there were a 1% drop in price....

If you're buying an "electronic" gold this in my opinion is still too small of a drop to sell...

I'm certainly no expert like YUP but I do understand that if you're stop losses are that small it playing with scared money and you'll get burned more times than you will gain...

I am not sure I understand MontanaCMR's question. My first thought in my mind as a trader is "why are you buying gold at 1350"?

Right now, IF I was going to buy a contract on gold, to buy gold, I would only buy a contract and only a futures contract if I was buying straight up gold, IF and when it broke 1378, which would be the fresh yearly high.

Now, WHEN it happens and what my strategy is depends on what my game plan is. In fact perhaps trying to go off the spot price of gold might be clouding things since we arent talking futures and I really dont want to get into futures if folks still are getting used to say stocks.


I am going to make an example here- So let us pick the gold ETF fund. Let us say I have missed this entire move that started early 16 and broke to yearly highs. I am looking to get into gold and I decide I am going to use the GLD ETF fund. Ok, so first I need confirmation to be a buyer, I wouldnt mind buying a dip but before I buy one, I want to know gold is coming back.

So I look at a chart of GLD to know where the 52 high is. The LAST 52 high made on GLD was on 7/6, it was 131.15. So since I buy fresh 52 highs, I am only going to buy until IF/WHEN it hits 131.16. If that doesn't get hit for months, I wont budge until it does.





But lets say, for the sake of this example, in another 2 months it finally hits it. Again, repeating info here, I have decided I am going to do 5,000 shares. So I will roughly split up these 5,000 shares over say 2 purchases just again to keep things simple. so when GLD breaks 131.16, I will grab my first line of 2,500 shares.

I plan on sitting on this trend and allowing it a big leash since its a commodity and experience tells me generally trends in commodities run for several years. So I am going to put a 10% stop on this first line of 2,500 shares.

I will let time go by and if I see proper consolidation and then another 52 highs are hit, I will add my final 2,500 shares.

Now with a stop in place of 10%, I will allow the trend to work itself out. IN CASE THINGS DONT WORK OUT... I will stop out as I have set it in place.

Pretty easy stuff to understand. Probably the hard part for everyone is the sitting and waiting.

Finally, this post is dedicated to Montana. I am calling it the Montana Chart. I hope MOntana you can see the RANGE that has developed. Ranges develop over time and are high and low points that are being repeatedly hit over time by price.

Many times a previous 52 high ends up being the low end of a range. Remember how I say "price has memory"? Often, these areas are revisted many years later, months later etc. Point is, price repeats eventually somewhere in a range and that is because PRICE has MEMORY.

For Yup's a Jolly Good Fellow!

Thanks for the quick responses. I knew you were going to ask about the $1350 purchase. As I mentioned in an earlier post, I'm down to my two last techniques and decided to trade both for a while. Based on Elliot Wave, it called for a buy with that stop loss.

You answered my main question which was, if we are in an uptrend and I get something wrong, should I just forget the stop loss until it's evident the overall uptrend is over.

The chart you posted is excellent, and I appreciate it. You did mention you could buy a dip. If so, where would this be (even though I know you don't do this)?