Silver is sizzling. The white metal is on a four-day 5% rip and moving to its best levels since February. Yet, it still lags gold by a large margin and the ratio of gold prices to silver reached 20-year highs. Can silver continue to play catch up? At least one whale of a trader in the futures market seems to think so.
Mark Meadows is our forex trading guru here at the Topstep headquarters. Perhaps you have heard some of his sage insights on the Limit Up! podcast or read his scorching-hot takes in the now-retired MARKet Reaction email. Well, we are proud to announce that Mark is once again expanding his media empire and recently appeared on the immensely popular DailyFX Podcast hosted by Martin Essex.
Here come earnings. Several large companies report over the next few days and then the floodgate on second quarter results opens wide next week. The S&P has been in rally mode heading into the reporting season and now the question is: Can corporate America deliver numbers that justify the lofty increase in share prices?
We finally went ahead and did the damn thing! The S&P 500 broke through the 3,000 level for the first time ever this past Wednesday following some favorable talk on rate cuts from Federal Reserve Chairman Jerome Powell. But before we pop the Cristal, crank the tunes, and slaughter the fatted calf, it might be wise to take a step back and think about what all of this exactly means.
The bearish funk continues for Sterling. The British currency is falling to two-year lows amid weak economic data and a looming Brexit deadline. Political disputes with the United States and China haven't helped matters. The Pound is now testing important levels against both the Dollar and Euro. But where do we go from here?
Rock star traders are made, not born. Nobody emerged from their mother’s womb and three years later started generating massive profits in the futures or forex market. It takes time – trading is a difficult pursuit and the learning curve can be steep. One might argue that, because markets are always changing, continued success requires lifelong learning.
Technology has changed many aspects of our lives; one area that has seen massive improvement is the world of investing and trading. There’s never been a better time for the individual investor to participate in financial markets.
But it’s not all good news. The ability to trade nearly 24/7 and at speeds never seen before has a couple of disadvantages as well. Let’s discuss them here in Part 4 of our series on Not Gifting Money to the Markets.
The greater the risk, the greater the reward – so the theory goes. Investments that involve little risk typically offer small rewards. And high-risk trades can yield windfall profits.
In trading, risks and rewards define each position. The ratio can be tweaked using tools like stop-losses and profit targets. That’s what Part 3 of our series on Not Gifting Money to the Markets is all about.
Studies show that we, as human beings, feel the sting from losses to a greater degree than the sense of gratification from winning. That means we would rather not lose than actually win. For that reason, traders sometimes make the mistake of cutting winners too soon and letting losers run. It’s a form of self-sabotage that has ruined more than one trading account.
Consistently lose money as a trader? Game over.
After all, the goal in trading is to generate profits. Like any business, it’s impossible to thrive when your account doesn’t yield positive results from one month to the next. While there are no magic formulas or rules to follow that can guarantee success, there are actionable steps that all traders can take to avoid common pitfalls.
In this five-part series, we’ll explore some of them.