Gold and silver can fall further if there is no geopolitical risk. Economic data releases for the next two weeks will affect global financial markets only if they are below expected lines. The Bank of England is expected to raise interest rates next month. Sterling could nosedive if there is anything to indicate that the Bank of England will not raise interest rates.
Bond yields in Asia will affect the global flow of funds into different instruments. Interest rate hikes (if any) for the rest of the year with different nations have already been factored in by the markets. Interest rate cuts in Asian nations (except Japan) will depend on the inflation cycle.
I hear a lot of chatter that global stock markets will correct anytime soon. A correction in global stock markets can result in a fall in industrial metals but a rise in gold prices.
How to trade in silver
On Diwali day I received a call from Bhai Patel from Rajkot saying that over the past few years he has been making losses in silver trading. The concerned person has good knowledge about technical trading as well as silver’sfundamental aspects. Bhai Patel only trades in MCX silver futures and nothing else. Still he makes losses. Below are some of the points as per my experience which one needs to keep in mind for silver trading.
·Trade only when you are confident. Confidence will come only if you make profit.
·If you make continuous losses then trade for small daily profit targets every day. Once you reach your daily profit target then close for day and trade the next day. This will increase your confidence and also increase your risk taking ability.
·Humans naturally have a tendency to try to recover losses in a trade. Every week I receive calls asking for one trading tip which can help to recover their losses. Any such move will only increase your losses and suffering. Reduce greed and be content will small profits.
·There are at least ten trading sessions every year when silver sees a big one way price swing of at least sixty cents. Try to identify such days and go for the kill to make maximum profit on such days.
·Another problem which I have seen is that most of the people increase their risk once they make a big profit another day. This tendency results in erosion of the previous big profit. Risk should be increased gradually but should not go in proportion to profit earned. For example if on 23rd October one makes a profit of fifty cents in silver then then most of us take a risk of sixty cents to make hundred and twenty cents on 24th October only to incur a loss of seventy cents.
·Bhai Patel from Rajkot also asked me if I should leave silver trading. I am a silver lover. I love the metal. I love the fascinating uses of silver in our daily lives. Every second directly or indirectly we are all using silver in our daily lives. Those who have not entered silver trading or are not invested in silver should do it now. I have advised Bhai Patel to trade in silver but with the above mentioned caution.
·Last but not the least, meditate to increase your confidence in trading. When trading keep your personal problems away. You will commit a trading suicide if you think of your personal problems while trading.
COMEX SILVER DECEMBER 2017 – current price $1700.00
Bullish over $1701.0 with $1713.90 and $1729.70 as price target
Bearish below $1693.30 with $1679 and $1663.80 as price target
Neutral Zone between: $1693.30-$1701.0
·Silver can fall to $1685.80 and $1663.80 as long as it trades below $1710.50.
·Buyers will be there only if silver manages to trade over $1710.50 after the UK opens.
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information.Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
Disclosure:Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
Trade without emotions
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NOTES TO THE ABOVE REPORT
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UK session starts around 1:00 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 6pm pm Indian Standard Time (+5:30 GMT)
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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