Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Trading and Discipline
May 28, 2020 - (Gold Market Wire) - Yesterday's action in Gold was a perfect example of the role discipline plays in trading. In the early European a.m. we pointed out the formation and the target to set, with our chart.
As the market rose to test the line, we got the following:
The market went right to our level, and fools rushed in.
Did you try and anticipate?
Did you fail to wait for the COMEX close?
Classic market ramp to the level, to get the suckers in.
It is madness to establish trades that haven't sustained a move above the level. Touching and turning doesn't count! And if you don;t wait for the COMEX close... or trade at 3 a.m. New York time, you are asking for trouble. Real entry points are defined by closing prices or inter-day moves that are sustained by serious volume and action. Another classic picture yesterday was that the target was touched right near the opening - to get everyone hyped. Those who maintained their discipline survived to fight another day. Those who succumbed to their emotions , or went "looking for action", got hurt yesterday
Now we are drifting lower, and its time to reset the parameters. Like we do every day... in a disciplined manner.