The past few months it seems the gold and silver play has been getting a little crowded with everyone wanting to own gold. While I am a firm believer that these precious metals are a great hedge/investment long term, I can’t help but notice the price action and volume for both metals which looks to me like they are getting exhausted.

Silver – Daily Chart The silver chart below shows an extremely high volume reversal candle in early November which typically leads to lower prices and some times a major change in the trend. That being said silver remains in an uptrend with the possibility of a bullish pennant forming. On the other hand there is a possible head and shoulders pattern forming. I will be looking for light volume sideways chop keeping a close eye for a possible neckline breakdown or a momentum thrust to the upside for a possible trade.

Gold – Daily Chart Gold is forming a bullish and bearish pattern also giving us a mixed signal. I am currently neutral on gold and not really looking to take part until we get some type of clear price action.

A stop is a predetermined number below our entry price if we are long or short. Stops are their for our defense against loss when our program goes wrong.

Though they are not 100% correct, there are bad fills and slippage. The position has control over you, but you are out there disagreeing with it and if you do not have the stop in place then what do you do?

You have lost control, feelings begin to set in and you have gone done a road that you do not want to be on. You have entered in the wish I was not here area. You start to lie to oneself saying it’ll come back its just non permanent or better yet I will buy more shares to negate the loss, not realizing that it may decline further. Sure enough it comes sucking up all of the hard-earned cash in a matter of a couple of days.

Now for the piece of humble pie. Stops should be placed with a money management plan behind it but first you have got to figure out how much you are ready to lose on any particular trade. For instance, let’s imagine that I have $5000 to trade with today.

The past week has been interesting to say the least. Gold is trying to find support while the SP500 grinds its way higher. Let’s jump into the charts and analysis to get better feel for what I feel is happening here. Gold 4 Hour Chart

As you can see from the chart below gold has formed a possible double top. The fact that it made a higher high is actually a bearish sign for the intermediate term 1-3 weeks. When we see a higher high getting sold into with big volume it typically means the big money is unloading large positions into the surge of breakout traders and short covering that occurs when a new high is reached. Following the big money is very important to keep an eye on as it can warn us of possible trend changes before it occurs.

The current selling volume is not exactly a healthy sign if you are looking for higher prices in the near term. If this pattern breaks down I would expect $1340 to be reached very quickly.

Keep in mind gold it in a strong up trend still. Shorting is not the best play in my opinion. I prefer to see pullback which washes the market of weak positions then jump on the long side for another bounce/rally.

Having the right perspective is vital in any type of enterprise. And market trading is only one of many examples of career trails where having a clear and focus mental condition can make the difference between disaster and success. Market trading is a dodgy business and without knowing more on the details makes success even more hard to reach. But with the right disposition you push ahead. But what are the right perspectives in trading the market?

One of the more critical tips in market trading is to keep your feelings in check. There’s no real need to be emotional in a business where facts and numbers are all that matters. For example, you needn’t invest on stocks or trade stocks based primarily on private estimations. You based your choices on known facts and worked out projections. You do not decide as you hope the stocks will improve or you hope your investment will be a really good one. Stick with the facts.

Some will argue that instincts play a great deal in making decisions in market trading. To some extent it is indeed true. However, what will help you make the correct decisions are the instincts that you developed through your time and experience in the market. But instincts alone will not make you a great and successful trader.

Many students going in for the funding in their knowledge approach so at a fixed rate. As opposed to worrying with regards to the floating rate alternatives which can vary wildly, it feels right to get in for an option that’s fixed with a particular monthly interest so the scholar can plan greater. Since interest is fixed, the monthly premiums can also be fixed, that is certainly an extra.

Together with fixed rate loans there may be an additional advantage that is certainly the possibility to consolidate with a lower rate! Debt consolidation of fixed loan rate for college kids is today obtainable in numerous ways – through government backed funding companies, through private / public partnerships, and through complete private finance.

As outlined by law, however, there could only be one consolidation completed by a personal agency, and when that is done, should the applicant will need an extra consolidation, there can just be one granted from the department of education. The most convenient good thing about the consolidation of fixed loan rate for college kids could be the lower interest chargeable within the consolidated loan.