Trading Silver vs Gold

[sijus]

Hello to everyone here on forum!!

I just started to trade Spot Silver instead of trading spot Gold and the reason is huge spread on Gold. I wonder if anyone could help me out with trading Silver.  Im watching Gold chart and entering trades on Silver and i hope im doing right thing becouse its far more profitable. There is positive correlation Silver-Gold. Can somebody here give his opinion and point me to web sites related for advanced Silver trading strategies.
Or maby corelation with forex pairs?

 
My regards!!!

[metaltrader]

Hi Sijus, I have some experience trading physical gold and silver, and I'm just now going to start trading them on forex. As for silver, it's much more volatile than gold, so the possibility of greater profits is definitely there, but also greater risk of course. They have an 85% correlation in price action.

I have found a spread of .02 for silver and .40 for gold on Ikon-Royal.com, but I'm always looking for brokers. I haven't yet funded my account, so if you know if a good broker I'd like to know. Ikon has high reviews on forexpeacearmy.com but I have no personal experience with them.

Best technical analysis for metals is at

http://jsmineset.com/category/traderdannorcini/
I also like http://www.thegoldandoilguy.com/
and http://silver-investor.com/
and http://www.butlerresearch.com/

The gold and oil guy is about to launch a day trading signal service for gold and silver this month. I'm strongly considering subscribing.

What resources so you use?

Chris

[sijus]

First of all thank you for the provided links and other information.
I didn`t use any specific resources for trading Gold and silver i just watched Eur/Usd, Usd/Jpy and gold to enter Silver trade.
Im going thru the sites that you recomended and see what`s going on there.
My broker was FXCM US and now i moved to FxPro few moths ago.

Do you trade Gold and Silver intraday? If you do what kind of indicators do you use and maby what your settings are.
I use only 21ema, 55 sma, 200sma and stoch (8,3,5) + PP daily and weekly with medians.

Thanks for your reply once more again,

Best regards, Sijus

[metaltrader]

I'm using this method to catch entry points: www.the-natural-flow.com

I don't have his full system, I just use what he gives you here for free. It works reasonably well, I use it on 15-min time frame.

Once I have a trade engaged and it's profitable, I take profit on part of the position, then move my s/l up to break-even-- so I've made money and have no risk after that. At some point, the trend will establish itself and I'll be along for the ride.

If the price retraces and takes out my stop, no problem I'll just try again.

I do expect a strong uptrend to lock into place as worldwide events continue to unfold. That's my long term strategy.

[Streetpips]

I commend both of you, you are brave and are risk takers, I've traded silver and got burned bad on a demo a few yrs back, it is coincidence that I just posted a reply and mentioned silver... if one can master silver WOW you can make a pile of money literally, and the thing about it is that it will force you to have big profits because it moves so fast but not fast all the time its just that the swings are so far and sometime they are fast, and another thing is that its like that allllllll the time, if you are not paying attention whewww, I wonder if they are any idiots in the world who trade silver with no S/L hahahaha lol, its a mover because the of its industrial use as well I just have been tracking it to buy rounds and ingot but now I'm like forget it "no guts no glory" I'm not going home so I'm going hard, I hope you guys make a pile of money also happy trading

[sijus]

I commend both of you, you are brave and are risk takers, I've traded silver and got burned bad on a demo a few yrs back, it is coincidence that I just posted a reply and mentioned silver... if one can master silver WOW you can make a pile of money literally, and the thing about it is that it will force you to have big profits because it moves so fast but not fast all the time its just that the swings are so far and sometime they are fast, and another thing is that its like that allllllll the time, if you are not paying attention whewww, I wonder if they are any idiots in the world who trade silver with no S/L hahahaha lol, its a mover because the of its industrial use as well I just have been tracking it to buy rounds and ingot but now I'm like forget it "no guts no glory" I'm not going home so I'm going hard, I hope you guys make a pile of money also happy trading

Yes you`re right it`s risky but only if you watching those charts solely. I trade them both now and to get a clue i use Euro and Cable for confirmation with Eur/Gbp as proxy pair.

[Streetpips]

WHAT?? that is very interesting?? As we all know London has gold on a MMA headlock because of the Rothchilds and the gold pool, so I'm wondering where does the EURO come into the picture??? (I'm not saying your wrong I don't know) Gold has a negative correlation to the USD, as well as XAG/USD so I am very interested in your answer, because to be fully honest with you when I lost all that money so quickly on XAG/USD on that demo I was a little affaid of lossing every because it was a big loss $5million in 5 days to be excact, I didn't even try to trade, it was a test to see how strong the $ was at the the time, so I just press buy, 5 days later I said WOOOOOW!!!!! , and check out how my brain works, I said if I lost that much in 5 days then I looked at the chart and went back and saw how big those swings were it looked like a kid scribble scabbled on some paper, I start thinking if I master this guy silver I might fall out of love with the pound so I am watching price action now, so I'm looking forward to start trading with XAG/USD but for now I'm am looking for a suitable broker and finishing my studies on my pattern research once I finish I will be a monster on that silver, have you ever checked out the CAD they own alot of mining companies and alot of them are public?? I'm already looking into this matter, but le me know what your thought is...happy trading

[sijus]

Maby we didn`t understand... i trade it intraday.I dont hold my trades over night....there was no trades that i held over night in last 5 years or so. I trade London session and thats it. For Gold i use H4 oversold/overbought levels on stoch. and with conjunction with other fx pairs, and man it works  . Mostly when i enter Silver or Gold with 1lot i wait 300-500 pips on gold to bank 0,8 lot and rest 0,2 lots i try to hold on significant levels and thats it. Same thing with Silver.

For example yesterday i took short on Cable and Gold at same time. It was sharp drop. 0,8 lots i banked on Weekly PP, after Gold drops futher down to Daily S1 i moved S/L to Weekly PP and get stopped out. Same thing was with Cable but i wasnt stopped.

Maby this help you out. I didnt ment to offend you man 


Best regards

[spunky]

 Good thread  interesting . I  treat gold/silver as money and protection against the  fiat currency fiasco. Funny thing is, gold/silver led me to studying markets, finance, and led me  to trading currencies. Odd how this all works out.

[Streetpips]

@sijus I didn't get offended we are all here to learn, thanks for sharing your experience and knowledge with us, I know for a fact that silver is a beast and you can make a pile of money on it, after I master my new technique of trading I'm going hard, I think I might fall in love with silver lol... just a trading joke I don't love money I just make it, sometimes it feels like my first day trading it's fascinating and amazing how you can make money how we do....( for a whole 24hrs).......but I'll tell you.... I think gold is in for a hard retracement because that is real money that has been out for centuries and it's whipsawed in our century also. it can't go higher and higher without a retracement it's a natural law.... b4 2013 I see it at around the $700-$800 handle, and another reason the swings are a lot wider because of it's age and if it doesn't then USA and the rest of the world has a big problem, because then we will have to export, and we are spenders and importers as well as consumers we sell to ourselves. Now if it doesn't retrace by that time we may see the amero into play and gold and silver no longer denominated  in $$$'s and on to the euro or IMF currency, just my take

[Streetpips]

I forgot to tell you, look at counties with high silver composites like Canada, and Australia, look at their factory order news releases and inflation reports, high inflation equates to money leaving and averted to precious metals, and industry has a heavy weigh on silver and see computer's have gold in them if you ever looked at a circuit board (the green board with gold stuff all on it) that is real gold so cell phones electronics and even cars all are have gold and silver content in then so that can give an ideal on a broad prospective what to look for in supply and demand, but it can be tricky some times, it may not in demand for industrial purposes but the risk aversion is in play.....

[sijus]

to Streetpips;; Yes i know all this and i monitor that.......i didn`t want to go deeper for first thread.


take care