Silver trading is tough! This is, probably, not an encouraging way to start content to eliminate your doubts and get you to trade silver like a pro. The good news is that having exposure to trading silver is exceptionally straightforward.
There are various ways to buy and sell silver. One of the effortless ways to purchase silver is through CFDs (contracts for difference) and by buying silver mining stocks through a legitimate online broker.
Why silver trading?
Silver’s high trading volume and tight spreads make it one of the sorts of highly tradeable assets in the world. In addition, sliver’s high liquidity makes the commodity trade with clear chart patterns. If you have been trading silver, you could have recently noticed that it’s more volatile than gold due to its market comparison. As an intraday trader, you’ll be able to take advantage of the intra-day market swings.
Apart from the observable features on the charts, silver is historically held by investors and traded because of the diversification it offers in its use as a store of value. In addition, silver’s use in the renewable energy sector generates new interests in the market.
Trading silver like a pro
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | |
| 21.87 | 21.77 | 49.51 | 3.53 | 1975 – 2022 | USD/t. oz | Daily |
You have probably heard and applied the famous saying in trading: “The trend is your friend.” Why do you realize later that it’s not the only friend you need to make consistent profits? After reading this article and applying what’s written, you’ll have acquired a new friend – Mr. PDR.
Learning about the basics of trading can be daunting sometimes. However, following a given set of Rules, improving your Discipline level as a trader while patiently Determined to master the craft gets you profitable. Let us dive into some of the fundamentals of trading silver like a pro.
Finding the right trend
A trending market makes new price extremes. For example, a down-trend silver market makes lower highs and lower lows in its price movement, while an up-trend makes a series of higher highs and higher lows.
Mastering trend trading can prove to be profitable while silver trading. You can use moving averages or even draw trendlines to determine the direction of a trend at a particular timeframe.
Filter your signal in the direction of the trend
As a trader, there are numerous tools to identify buy and sell signals in the silver market. Some of the tools that you as a trader should be familiar with include the MACD (Moving Average Convergence Divergence). RSI (Relative Strength Index), Simple Moving Average, and the Stochastic. You can also use trend lines, a popular and effective indicator, as your buy or sell signals.
You should only use the indicator you are familiar with and take trades only in the direction of your identified trend. Remember to filter those signals and only take trades that suit your market bias.
Stop losses and take profits
Risk management is probably one of the most important habits of a pro silver trader. Using take profits and stop losses is essential to managing your market exposure while trading silver like a professional. For example, you might be risking 1% or less of your account on any particular trade you take while holding to take a 2% or more reward on that trade.
Perfect use of indicators
Many false signals will be encountered as you learn to trade the silver market. So, how do we deal with the market’s false signals? We must rely on the indicators’ readings to deal with false signals. We can easily find reliable trade signals by learning the functions of the indicators.
However, don’t cram too many tools into your charts. If you do that, you will lose money most of the time. Instead, keep your trading chart simple and limited to one or two indicators. You will earn a lot of confidence in your trading profession once you master the use of indicators.
Support and resistance
Identifying the support and resistance level with a high level of precision is the most powerful skill you can acquire as a pro silver trader. Professional traders have proven the vitality of support and resistance levels in the past. It works. Missing out on these important areas on your silver chart is like forgetting an essential ingredient while preparing pizza. You’ll lose money!
Identifying your chart’s support and resistance level does not make you an instant silver pro trader. Don’t go on Instagram and update your bio just yet. Take Mr. PDR along your journey, and he will help you find the results you desperately need.
You should strive to identify and take your silver trades in the key support and resistance areas. Hint: key support and resistance are identified on higher timeframes. With Patience, Determination, and following your rules, you’ll get good at identifying key areas in the market and thus become much more confident with your trading system.
Learning to analyze the charts
Do you know how to analyze the major chart patterns? Unless you learn to analyze the significant chart patterns in the market, you’ll only dream of trading silver like the professionals. To become a professional silver trader, you must invest your time and be patient while determined to master the chart patterns as you back-test silver on your demo account.
Data analysis is robust for a retail silver trader. Studying the chart patterns can equip you to spot significant reversals in the market. Be patient and learn to evaluate your risk profile strategically. After mastering chart pattern analysis, you’ll find your trading approach profitable.
The bottom line
Take Mr. PDR with you as you test the tips mentioned in this article to become a professional silver trader. Don’t expect magic to happen in the markets. Every action must be deliberate and strategic. In order to find reliable signals, you’ll have to take your time and learn these risk-free on a demo account before investing your money.
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