Hey guys and welcome to yet another breakout trade! This will be the first time I cover a commodity using the breakout system but i've got to tell you that this year we only had 8 trade signals on Gold using the Breakout System, this trade would be the 9th and it's most likely going be a BIG winner, but I guess only time will tell if what I preach is the truth :).
As I promised in the other Breakout System posts, we will begin with a big of education before we head into the trade idea. In today's post I will go over the importance of patience (basically sitting).
The Importance of Sitting
Patience is important in trading, but its not only important in waiting for the right trades (the good trades), but it is also essential in staying with the trades that are working. Always remember, the 5 points to success,
1. Ride your winners
2. Cut your losers
3. Manage your risks
4. Have definite stop out areas
5. Always follow the system
I have seen plenty of traders go broke taking profits... the greed and fear kills them, I have seen trading accounts which have won over 95% of their trades but ended up losing all of their capital, the reason is simple, they didn't stay with their winners, the took profits quickly and they let their losers run. So, with today's trade, if it is working out and you have no good reasons to close it, just keep a hold of it. Naturally there will be days where Gold will go down, sometimes for 2 or 3 days in a row, but if the trend is up and you are buying, STAY WITH THE TREND.
Remember this, amateurs go broke by taking large losses, professionals go broke taking small profits.
It is essential that you stay with your winners and the best way to have winners is to be patient in selecting your trades.
Ok, thats it, lets head into our trade idea.
Gold, Daily Chart.
(click to enlarge image)
This breakout on Gold looks amazing! and to be honest I am so excited to be in this trade because Gold has so far given us a 100% win ratio with the breakout system (this year) and I believe that this trade will continue to keep the 100% legacy in 2017.
So, if you zoom in to the chart you will notice the following,
There is a major trend line supporting bullish price action, it was tested for over 9 trading days in a row
The support trend line has been a key support level in 2017.
Price action recently broke out of the bearish trend line and retested it (yesterday) confirming that we are in a bullish run on Gold
Currently price action is breaking the DC & EMA which significantly increases the odds of this breakout being valid.
The 45% from the recent key high and low has remained intact
The profit on this one could be worth over 9,000 pips
So the screen shot and bullet points pretty much sum everything up... we will stay in this one for a while probably (weeks/months) and I am happy to do that as I truly expect Gold to rise heavy in December 2017.
My trade details,
- Exit area: I will look to exit this trade idea if 1270.00 is broken
- Profit target: I am targeting at least T1, which is 9304 pips away from my entry (price: 1380)
Thats all I got for you guys, if you think I missed something let me know, if you have any questions, just ask!
See you later fells!