Tuesday, 12 April 2011

Mighty Silver

I was stopped out of the ZSL trade about 2 weeks ago. ZSL is a short silver ETF. At that point in time my analysis was that they were high probability trades going by the volume and price action but lo and behold... Never said never in the stock market. I always adopt this mentality when placing trades that : "I am going to be wrong most of the time". If the inevitable comes and the loss has to be taken, take it and move on!

Just when you had given up on this trade, another signal appeared. What do you do now? We do not throw in the towel yet. If your style of trading prompted that its a signal (high volume with reversal candlestick) you should take, then you should not give this trade a pass. For all you know, this trade might work out. I'll said: take this signal again and buy ZSL the next trading day with stop loss at the low of the bullish piercing candlestick spotted at closing today. Note the huge volume which was even higher than the previous trade i took about 2 weeks ago. Golly....


Short Sliver ETF (ZSL):





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