Gold Weekly Analysis for WS 10th March

With the easing of the Ukraine tension, Gold has cooled off a bit. Some level of profit booking is also seen. Bear in mind though, that the Ukraine crisis is far from over. Another strong move by the Russians and we could see Gold trying to breach $1360 levels.

I have maintained in my previous posts as well that Gold needs to have a strong close above $1360 for it to have the traction to go past $1400 levels. Till such time, I think it will keep playing hide and seek. I do not see the Ukraine tension going off in a hurry so Gold traders will always feel they would have a chance of Gold going up in the short term at least.

The daily chart shows a possible Cup and Handle formation could take place which would be Bullish for Gold. On the Downside, $1300 – $1310 levels would provide good support.

Overall, Gold looks to be under some pressure for this week but mind you, with the Ukraine Crisis still looming large, that can change anytime.

Gold Weekly Ws 10th March

As usual, the market will decide it’s course of action. All we need to do is follow what it does.

Gold trading levels for this week are as follows

Buy Above 1335 Tgt 1 – 1341, Tgt 2 – 1348, Tgt 3 – 1355

Sell Below 1335 Tgt 1 – 1328, Tgt 2 – 1321, Tgt 3 – 1314

Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.

Have a Profitable Trading week ahead!

To your Boring Success!!!

Advertisements

Plan your Trade and Trade your Plan!

Whats your Plan

This is really a no brainer. If you want to achieve success, consistent success, in this game you have to have a plan. It is similar to everything else in life. No matter which market you trade be it Futures, Commodity or Currency, you need a trading plan.

Goal Strategy

Trading has to be goal oriented. You need to set goals and a pragmatic trading plan is what helps you achieve those goals, day in and day out. Notice, I have used the word “Pragmatic” here. I have seen many new traders as well as some seasoned ones who set unrealistic, impractical goals while trading. Most newbies start with small accounts and hope to double/triple their capital every year. It is good to be optimistic but merely being optimistic is not going to make you any money in this game. You have to be cautiously optimistic. Don’t try to bite more than you can chew. Newbies keep making these mistakes and are washed out sooner than they realize.

A trading plan should reflect the personality of the trader. I cannot stress more on this! No trader is the same. What works very well for me may lead to losses for you. You can have a simple 3 step Trading Plan or any elaborate one which takes into account every nitty gritty. A simple 3 step plan would include how to get in, how to manage the trade (via SL/Trailing SL) and when lastly, when to get out. Whether you have a simple plan or a more focussed one, YOU HAVE TO HAVE A TRADING PLAN. Without it, I guarantee, you won’t last long in this game.

What is even more important than having a plan is to follow it to the tee. Once you make a plan and take it live you have to adhere to all the Trading rules in it. That is how it works. A Postit note which shouts “FOLLOW YOUR PLAN” should be stuck on every trader’s terminal. Many traders fall prey to the idea of overriding their trading plan based on gut instinct. Let me tell you this, you might be right ocassionally, but you are going to be very wrong in the long term. Trading is a long term endeavour, unless it is a pursued as a hobby in which case it will cost you a lot of money.

All this eventually boils down to the core principle of Discipline. You have to have the discipline to follow your plan. You cannot keep changing it every now and then. The formulation and execution of your Trading Plan will reflect and determine your trading success.

Every 6 months or so conduct a review of your trading plan. Add some news rules or delete some depending on your experience. Trading is a continously evolving occupation. You have to keep thinking, keep improving, keep adding to it. It is a a never ending catharsis of human psychology.

Remember : Your Trading Plan should reflect the kind of trader you are. Make your own plan. Do not copy someone else’s plan as that is a sure shot recipe to failure.

Trade your plan 1

If you are a trader and do not have a Trading Plan, NOW is the time to make one. It will go a long way in making you a very competent trader. One of the things I help traders in my Boring Trader Course is how to make a trading plan which suits your personality. If you need more info on The Boring Trader course do email me at theboringtrader@gmail.com. Alternatively, you can click on the Services tab to the left.

So go ahead, Plan your Trade and Trade your Plan!

To your Boring Success!!