End of Week Thoughts

We at the Academy of Financial Trading always find it fascinating when we talk to our students about their trading.  During an initial discussion, we like to cover all relevant areas – their history (if any), there intentions, their goals, their interests, even their opinions. 

Their “opinions” which tends to be of most interest to us… simply down to the fact that there is always an idea that “right now” is not the best time to enter the market. Current market conditions are too volatile “right now”. There is too much uncertainty regarding a militaristic conflict in some part of the world “right now”. There are too many conflicting reports regarding the overall global economic outlook “right now”.

We believe that there are only a few certainties when considering trading.  One certainty is that the time to learn to trade is “right now”.  Another is that the best time to trade is also “right now”. The world is always changing, it is always in a state of flux.  There is always economic uncertainty somewhere. There is always going to be a conflict in some region.  Volatility will always exist in the markets. 

We like the unpredictable nature of the markets.  We like the ever-changing environment. Can it ever be controlled?  Absolutely not – only a fool would think so. 

You can, however, control your trading.  Analyse a market in the correct manner. Use a proven trading strategy.  Ensure that you have a disciplines risk management technique. Remember that the protection of your trading capital should be your number one rule.  Then learn to embrace the change – to love the “right now”. This is one way to become a successful trader.

Will the Swiss go for Gold?

Switzerland goes to the polls this weekend to decide whether or not the Swiss National Bank (SNB) should be prohibited from further gold sales, to ensure that all Swiss-owned gold is repatriated to Switzerland, and to mandate that gold makes up at least 20 percent of the SNB’s assets.

This is a time of huge interest to traders… and the mainstream media discussion has proven to pique the interest of even the novice market watcher to analyse what will happen to the price of gold as the result is announced.

The Academy of Financial Trading has noticed a huge increase in the interest being exhibited to the gold market as a result of this pending vote.  As an online trading academy, the company has a wide and diverse student base – but the interest in trading transcends all demographics. 

It is fair to say that this decision will impact the market from a fundamental perspective. Co-incidentally however, it is also a time where technical price action must be appreciated.  As an educational entity who specialises in short term trading techniques, we believe that the technical side will win out.

The gold market appears to be building a base around the supportive area of $1,140 - $1,180.  If this supportive zone proves to be impenetrable, then the market should rally from here in the relative short term.  A break below this level might however see quite a rapid fall towards $1,100 at least. 

It goes without saying that a “Yes” vote would be incredibly supportive for gold.  It would force the SNB to purchase 70% of total global production over the next 3 years to fulfil the wishes of the electorate.  Fundamentally positive for the price of gold?  Yes!