Today you, lucky reader, get a two-fer. That’s two things for the price of one. The reason for using this term will be revealed later, so keep on reading…
This morning’s article was going to be about seasonality in gold, which most traders misunderstand. But then a headline crossed the desk that’s just too good to hold back. So let’s quickly deal with seasonality and get on to the fun stuff. Because summer is supposed to be all about fun!
When people think about trading something, they initially think that they’ll have to watch it like a hawk — glued to the monitor while prices tick up and down along with the buying and selling every day. In reality, that’s a great way to lose money for most people, not make it.
Why is this? Well, first of all: It’s because most useful patterns take longer than a few seconds to draw out. So you’re best served waiting until something useful comes along. These days even good day traders use five-minute candles more often than they’d like to admit, to avoid getting caught in “just a blip.” After all, you want to catch Moby Dick, not a minnow.