- Light on risk now after recent Type 1 debacle from wrong sizing.
- Comeback plan presented here using USDX as overall proxy.
- Monthly : Big triangle break on downside; pattern not at all complete, nor does it look like a reversal has taken place. So, still looking for test of 70.70 eventually.
- Weekly : Downtrend in place. Smaller triangle forming; boundaries at 73.83 and 75.83.
- Daily : Magnified view of weekly triangle. Expect choppy price action within.
- Trade : Stand clear until break occurs. Of course, a downside break (=trend continuation) is much preferred, being in line with my mental orientation. I would be lost on an upside break. Need to prepare myself psychologically to go long if necessary.
5 comments:
Hi TS,
An off topic question - I notice you don't trade silver at all, its not in any of your posts or tables, etc. Any particular reason, or just habit, ie never done it?
TS, the previous post was me, Pandu.
Never done it.
Much of the time it's highly correlated to gold so there's no need for me to trade a separate commodity. No diversification value. Unless, of course, I want to trade the Gold/Silver spread, which I don't.
Also, too volatile and margins very high.
True about the volatility. Margins - on my oanda platform the margin for silver is very low, or it appears low compared to the pips/$$ you can make on moves. I actually want to trade gold, but find it very expensive to trade, ie the margin is almost 4 times that of silver.
Fyi on oanda, the margin on 1000 oz silver is around US$800, whereas the margin on 100oz of gold is around $3000. These are for spot trades on oanda, I know you trade futures.
Pandu
Based on the figures you stated ..
1000 oz Silver @ US$35/oz = US$ 35,000 per Oanda lot
100 oz Gold @ US$1520/oz =US$ 152,000 per Oanda lot
Both appx 2% margin ie both sets of margins are comparable.
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