Breaking Golden Rules Trying to Short Silver
By: Scott Redler of T3Live
Traders follow a set of rules and then live by them to stay disciplined and consistent. I pride myself on my routine and rules that I live and trade by. While I rarely miss a spin class, I’ve recently violated one of my steadfast rules trying to catch a top in silver.
Recently I’ve been fighting this trend in silver after booking profits from riding it previously. I’ve been trying to catch the home run short in silver, but all the while the other team is melting the precious metal higher with singles and doubles.
Recently silver rise has started to go parabolic. It’s a move that makes everyone feel frustrated, except for those ardent believers in silver and skyrocketing precious metal prices.
If you’re long and sell it to book profits, it goes higher and you are then frustrated to miss out. If you’re looking to enter but being responsible waiting for a pull back, you are frustrated because you missed the boat entirely. If you start trying to get cute by shorting it, thinking it’s come way too far too fast, you aren’t just frustrated, you’re feeling some pain!
I haven’t seen a move like this since the Internet bubble of 1999. Those who shorted early ran out of money before they were right… I’ve been trading around my silver short for a few days now, not in much size but feeling the losses nonetheless.
Trying to blindly pick a top breaks my rules and I will let you know when I see a more defined topping pattern or reversal which we have not yet.
Last time I did this was last November with Las Vegas Sands Corp. (LVS) after trading it at various points from $17 to $30, I stayed away and next things I knew it was at $49. Due my frustration over missing out on the long extension, I thought I would try to be cure and short it. I got stopped out of most of my size at $54 on a Friday at 2:30, then at 3:30 it broke and went from $54.50 down to $50 and then within weeks down to low $40’s. All you had to do is wait for the Reversal pattern on volume instead of trying to be cute and “catch a top”. Some of you who have been with us for a while may remember that trade.
So, foolhardy or not, I will continue to watch silver closely in anticipation of the big short. During this melt-up I will stay in light size and add on a more definitive reversal pattern. But it’s been a long week…
The “Golden Trading Vehicle” that has nearly 100% accuracy CLICK HERE
Keep on reading: Stock Market News
Read more at Stock Market Newz
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).