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≈ Prepare your trades. ≈

The metals market, specifically Gold and Silver, have been safe-haven investments for a long time. Even though we live in a modern world, this fact hasn’t changed. The market volatility and bearish sentiment in stocks was sky high during most of December. While stock prices were falling, metals prices were rising.

This week, Silver broke resistance. Gold broke out weeks ago, but Silver was lagging. Were you ready? Did you pull the trigger?

Veteran traders work from a watch list of major stocks, ETFs and other tradable instruments. SLV is an Exchange Traded Fund that is a very popular vehicle used by traders to trade the Silver market. This Wednesday, it broke a multi-month resistance zone.

Whether you caught the breakout or not, the key learning takeaway here is simple: prepare your entries and exits in a trading plan. As traders, we don’t know when something will trigger. We can only prepare and act, or react, to the action in front of us. The breakout of SLV is a great example. This is a key zone that traders have been watching for Months.

When you build a list of companies with key support, resistance and trend levels identified in advance, you have an opportunity to trade with more confidence when those entry triggers confirm.

Plan your trades, trade your plan.

Chart of the Day: Silver breaks out

Video of the Day: Using The RSI Indicator to Determine Breakouts

On the Coache Show, Matt Justice and Gino Poore talk about breakouts. They use an RSI indicator to help figure out if a stock is on a breakout or fakeout.

Originally published at tackletrading.com on December 28, 2018.