If you think Silver trading is almost identical to Gold trading, you are wrong. But if you think Silver is utterly different you are wrong, 同様に. 混乱しています。? Don’t be. Trading Silver has a lot of similarities to trading Gold but there are two key dimensions that impact the way Silver behaves in relation to Gold—volatility and the Gold-Silver ratio.
Trading Silver: ボラティリティ
Below is a comparison of Gold and Silver volatility levels. It’s hard not to notice that Silver is substantially more volatile than Gold. The reason for that is because liquidity in Silver futures across the exchanges is substantially lower than Gold futures. この, もちろんです, means that smaller amounts (albeit still in the billions) can move the price of Silver much more than Gold. As a trader you should accordingly adjust your strategy to higher volatility.
実習では, Silver’s higher level of volatility first and foremost has an implication on stop losses. Because higher volatility tends to trigger more stop losses it means more margin of safety is needed when you place your stop loss. 他の言葉で,if you are trading silver, you have to place your stop loss a little further to make sure a sudden burst of volatility won’t throw you off the trade only to later hit your market. もちろんです, this also means you might reconsider certain trades, because if your stop loss is now further from your entry but your limit stays where it is your risk reward ratio is now lower and that could mean your trade is not necessarily worth it.
The second noticeable impact of higher Silver volatility is the manner in which Silver trends behave. Both Gold and Silver have a tendency to move in bursts of momentum but in Silver, the bursts tend to be stronger because of the higher volatility. As can be seen in the example below, both Gold and Silver eventually gains more or less the same percentages. But while Gold’s ascent was more gradual, Silver lagged Gold only to catch up with it later, in a fraction of the time and with a strong burst. この, もちろんです, can be of great value for the Silver trader, especially one who can exploit such opportunities to make a rather quick gain from シルバー catching up with Gold.
Perhaps one of the most important ratios in the commodity space. The ratio, as its name implies, measures the price ratio between Gold and Silver. 他の言葉で, how much Silver is Gold worth? Why is that ratio useful? Because the ratio between Gold’s price and Silver’s price moves in cycles (see chart below).
When the ratio is at cyclical lows Silver is relatively cheap compared to Gold. In a bullish run it usually means that Silver’s price has more upside and will therefore outperform Gold. The same goes for a bearish trend. When the ratio is at cyclical highs then Silver will underperform Gold, both on the way up and on the way down. したがって, watching the Gold-Silver price ratio allows you to gauge the potential momentum w
実習では, this means you can expect Silver to outperform Gold when the Gold-Silver ratio is at cyclical highs. A classic example occurred in 2011 when as the Gold-Silver chart was at record lows (see above) which resulted in Silver outperforming Gold on the way up (see below). As the ratio gradually moved into cyclical highs, Silver started to underperform Gold again.
時々, Silver just moves too high too fast. When that happens it’s better to bail out before the burst. 反対に, sometimes Silver lags, so much so that you have to ask is it worth riding on volatility to catch up? The key to trading Silver is understanding its similarities with Gold but exploiting the differences between the two.
Paul ネルソン 言う
What is the heck is going on with Japan and their economic stimulus plans??? As well as the political firestorm has already occurring in Japan and its prime minister’s economic plans. He has already gotten the cabinet’s blessing to do more economic stimulus and yet Bank of Japan will make its own announcement sometimes in Sept. to fight Deflation. Do you realize that when they fight deflation and it gonna last for the next 3 years according to my research… Its gonna be bullish times for japenese pairs when its comes to quantitative easings (to print more yens). up to 28 trillion yens. 今の時点, your SB score indicator formula has clearly shown that they are extremely oversold and is due to be bullish soon once the Bank of japan has begun to print more yens..
If you can recall the great recession and the bank of japan has announced that they will perform 80 trillions yens. I think that has last around 5 宛先 6 years before they reduced the quantitative easing..
What do you think and whats your guts tells you about Japanese yens and its directions once BOJ will begin to print more yens.???
I expect then yen over the long run to get absolutely crushed. They’re the most indebted developed nation on the planet; this will not end well.
In the shorter term, I expect this yen move and equities rally to run out of gas. This is mostly retail-led on very light volume. Although it can go on for awhile, these are usually end-stage symptoms.
Paul ネルソン 言う
ええと, it is crazy to witness these central banks- BOE, BOJ, Euro banks and they are trigger happy to do Quantative easing.
Just notice the political firestorm that has already gotten started during the first week of the month and its due to the weak Japanese CPI economic reports. Take a look at their CPI data that has shown negative figures. When I see that negative numbers that comes out of Japan and the Japense government has begun to pull their “economic fire alarm” by saying we have gotta print more yens by announcing to the press or media by creating a big time rumor mill by hoping that their yen will rally. They did successfully pshye out a lot of traders last month and the whole month was bullish that was last month..
I also saw an ariticle at Babypips.com and that fella who I can not remember but he just begun to bet big on going “長い” on yen. In my own instinct that Yen will be reversed from short to long by middle of next week. And then close these positions on all jpy pairs before the CPI report comes out at the end of the month and go short before the BOJ announcement and go long once BOJ has announced an additional quantative easing..
Next month, it gonna be a year of bull yen that what my guts tell me. Perhap 2 または 3 あるいは 4 年. Take a good look at the European bankers. and their deflation fights.. Their CPI numbers arent good and yet keeping on printing Euros. How long that has been shown with out any significant improvements??? the last time it went above 1% and that was in April of 2016 and was short lived
Do not forget that Euro ought to run out of gas soon as well as yen. But I like them cuz of the pip movements and easily to predict these repetitions throughout of the month. That what I am looking for.
Happy trading Shaun!!!