The Power of Broken Support
Trader Scott’s Market Blog
September 6, 2016
For those who don’t believe in the power of patiently waiting to buy until “support is broken”, here are more examples. I’ve literally done this thousands of times over the years. Of course, most of those times were when I was a very short term focused floor trader. But you have got to learn to pick YOUR spots, whatever that means to you and to your comfort level. And you must learn how to take profits, especially partial profits. It’s how we survive in markets, along with admitting when we’re wrong and getting out. You attain superior performance in markets, and I don’t care if you believe that you’re a trader or investor (they’re basically the same thing, BTW), by being patient and waiting for YOUR opportunity. More specifically, when the market is giving you that opportunity to enter and to exit (if you have profits). You have ZERO control what the market does before and/or after you have “made your bet”. And you must understand this – you only have control over when you enter and when you exit a position. That is it. Please keep repeating this to yourself. And learn what it means when I say to wait for YOUR opportunity.
I’ve heard from some folks who did that exact silver trade that I’ve discussed recently and they have decent profits (on a short term basis) already. I hope that this gives them impetus to continue, but always minding your stops – being physical stops (I don’t use them) or mental stops (I do use them).
And to those folks who have taken profits, I’m waiting for my commission.
The updated charts are below.