Waiting Patiently For Gold To Fall? Read This
There are many who are looking short on Gold/XAUUSD with patience for a long term swing to the downside.
There are also many who take the same bias on the SPX and markets that have continuously rallied.
The current 'Risk On' sustained environment is responsible for this. Traders are essentially betting on a softer landing and extreme enthusiasm is going into Markets.
This is also why other risk assets like BTC/ETH are rallying on improved sentiment.
If you are going to trade any risk asset you must be extremely careful - or just don't trade it.
If Gold, for example, is to have a sustained fall you need a sustained market sentiment to the downside (negative bias).
At the moment, that is not happening (At least in a sustained fashion). So if you keep shorting large sizes into momentum you may not have the required equity to last until a fall occurs.
This, in short, is how trading works. If the market can go longer than you can, you may bust.
You must plan so that it can't, and you can realistically sustain swings against you over time. This is also the point of risk management.
And that's why poor risk management kills.
There are also many who take the same bias on the SPX and markets that have continuously rallied.
The current 'Risk On' sustained environment is responsible for this. Traders are essentially betting on a softer landing and extreme enthusiasm is going into Markets.
This is also why other risk assets like BTC/ETH are rallying on improved sentiment.
If you are going to trade any risk asset you must be extremely careful - or just don't trade it.
If Gold, for example, is to have a sustained fall you need a sustained market sentiment to the downside (negative bias).
At the moment, that is not happening (At least in a sustained fashion). So if you keep shorting large sizes into momentum you may not have the required equity to last until a fall occurs.
This, in short, is how trading works. If the market can go longer than you can, you may bust.
You must plan so that it can't, and you can realistically sustain swings against you over time. This is also the point of risk management.
And that's why poor risk management kills.
Note
Risk on persists. Awaiting further sentiment into Monday.
Remember if you short this with all your might, it can hurt. Avoid doing it.
Note
Not expecting fireworks this Monday (no real news sentiment)
Note
Price Falls Inbound. Looking for re-push for entry (back towards highs).
Note
Momentum returning straight into gold. Would not re-short until highs.
Note
Swing Short TGT 1.
Note
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bit.ly/learnttm
Free Discord Secret Server:
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Posts Not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Free Pro Multi Asset Trading Guide:
bit.ly/learnttm
Free Discord Secret Server:
discord.gg/tXAcxFVCJU
Posts Not financial advice.
bit.ly/learnttm
Free Discord Secret Server:
discord.gg/tXAcxFVCJU
Posts Not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.