During sideways markets like we’re in now the key to making money is patience. But let’s face it, most of you don’t have it, never had it, and are never going to have it. The average retail trader is a gambler always looking for the next trade no matter how poor the setup is. It’s why most people never make any long term money in the market. They over trade.
The current market environment isn’t conducive to trading right now. It’s very volatile and whipsawing. The best course of action is to let the market finish it’s consolidation and set up for the next leg up to 10,000. Unfortunately very few people will be able to follow that advice. They will jump in and get knocked out of the market over and over as they try to force trades in an erratic market. All they will accomplish is to lose money and have less to work with when the real move begins.
Right now the market that is potentially setting up for a trending tradeable move is the metals. If one is patient and gives gold time to finish it’s cycle low then this is the area where I think one can make, and more importantly keep some profits.
Of course as always most of you will ignore me until 3/4 of the move has already passed and then you’ll sit up and take notice. You’ll buy high after having let most of the rally pass you by. And you’ll end up selling low during the next correction.
Maybe this time you pay attention, buy low and make some money off the next rally instead of just repeating the same mistakes over and over.
Gold should be within 5-10 trading days of its next cycle bottom.