December 19th 2021, Silver Chartbook — Creating silver wealth without fear

Market play is often compared to competitive sport. One of the relations is that you are only a success at the moment you perform a successful act. It implies the necessity of consistency. No different in trading. A trader is required to consistently repeat a high degree of near-flawless execution of a trading system. It is said that what differentiated Michael Jordan, a billionaire sports icon in basketball, from his other peers was his focus. Focus on, “be here now.” He mastered not letting anything else into his mind but the determination towards the presence. Without room to project into the past or future, there was no room for doubts or fear that his actions could fail. Creating silver wealth without fear.

Two weeks ago, we posted the following chart in our weekly silver chart book release, after representing a strong case for a bullish silver play:

Silver in US-Dollar, Weekly chart from December 3rd, 2021:

Silver in US-Dollar, weekly chart as of December 3rd, 2021.

We wrote at the time: “The weekly chart above illustrates that as much as we have entered the “shopping zone” for silver. There is a probability that we might see a quick spike down as we have seen at the end of September.”

Weekly chart, Silver in US-Dollar, creating silver wealth without fear:

Silver in US-Dollar, weekly chart as of December 18th, 2021.

We were spot on anticipating how the market would unfold in the future. Furthermore, we followed the principles of consistent analysis of our surroundings, the market, and ourselves. We advanced confidently in the direction of likely probabilities and tried to keep doubt to a minimum.

Hourly chart, Silver in US-Dollar, well positioned:

Silver in US-Dollar, hourly chart as of December 18th, 2021.

This sequence allowed for a low-risk entry on December 15th, 2021 right at the lows. The entry-level of US$21.47 already allowed for a 2.75% partial profit-taking on half of our position size at US$22.06. As always, we use our low-risk quad exit strategy to reduce risk and, as such, fear of losing profits. Now we are well-positioned with the remainder of the position, and a stop raised to break even entry levels.

Silver in US-Dollar, monthly chart, worth the effort:

Silver in US-Dollar, monthly chart as of December 18th, 2021.

The monthly chart above shows our planned following two targets for this trade. With an entry at US$21.47 and an initial tight stop at US$21.22, our risk/reward-ratio towards our first profit-taking target was about 1:2.37. Now for the next target at US$27.35, it is 1:23, and for the final target at US$47.20, it is 1:103.

In other words, with extensive planning and stacking of odds, we were able to identify a trade that had about a percent of risk at entry time. In addition, we quickly mitigated risk by early partial profit-taking. And yet, we still have a profit potential of the final 25% of position size, possibly maturing to a 120% profit.

Taking only highly likely and highly profitable trades like these is also confidence-building and a fear eliminator.

Creating silver wealth without fear:

Michael Jordan’s achievement of playing in the present moment only is nothing short of the accomplishment of monks and so-called enlightened beings. It takes a long stretch of a career to achieve such a skill set. It illustrates that trading is more than just pushing a button or extracting a mathematical edge system. Trading is psychology and requires many skill sets combined to produce the necessary consistency to overcome the dilemma that you are only as good as your last action. Luck alone will get you nowhere in this game.

It is not our intention to discourage you. Instead it is quite the opposite. Often trading can be overwhelming and at times one can be down thinking:”Why can’t I do this, why did I betray my own rules again?” Trading is hard, it takes screen time and skill. Do not let fear and doubt dictate your actions. You can do this!

Feel free to join us in our free Telegram channel for daily real time data and a great community. If you like to get regular updates on our gold model, precious metals and cryptocurrencies you can also subscribe to our free newsletter.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Florian Grummes

Florian Grummes

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