How to trade gold and silver: Trading Strategies That Really Work.

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Lately it seems that everyone is interested in buying gold and silver. So many experts as well as the average person on the street are talking about what an excellent long term investment gold and silver are.
But when everyone is bullish on a financial instrument, it is often because the market may be at or near a top. And depending on what time frame you are trading you could easily buy gold and watch your trade or investment immediately go down in value for a long period of time.

How to trade gold and silver is exactly the same as how to trade Forex, stocks, commodities, futures, etc. It has nothing to do with tips from “experts” or any emotional bias. The way to trade gold or any market is to learn to look at a chart and identify the turning points that represent the beginning of a trend on any time frame.

For instance the long term monthly time frame might be near a top and the shorter time frames would still have opportunity to enter and earn profit. If an uptrend forms and end of any time frame there is immediate opportunity for shorting on a shorter time frame.

But the emotional bias or sentiment prevents traders from making wise decisions that are based on understanding these cycles on the charts. Buying gold and silver is not something an investor should just decide to do one day without consulting the charts. It’s also not possible to make profitable trading decisions just based on the current price of gold and silver. If you plan to buy gold and silver make sure that you make your trading decision at a time that is synchronized with the next upward turning point on the charts. This can only be determined by a trader who really understands how to read financial markets. An investor could easily make a decision to buy gold bars or gold bullion and after making the investment could watch the price go down for two to five years.

Trading without emotional bias or bullish sentiment can enable a wise trader to enter and exit trades in either direction either going long or short at the right time so that the bias is toward earning profit rather than owning gold.

How to trade gold and silver: Trading Strategies That Really Work.