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Silver: Strongest Volatility In The Market

  • #1
  • First Post: Mar 14, 2008 6:50am Mar 14, 2008 6:50am
Anybody up for discussing silver movements

it moves everyday from 600-->1500 pips

much profit to be found if we can analyze it.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #2
  • Mar 14, 2008 6:58am Mar 14, 2008 6:58am
salah....

very interesting observation.

I will look into it. and if I have a chance I might include this in my things to work on too.

EG
  • #3
  • Mar 14, 2008 7:00am Mar 14, 2008 7:00am
Quoting el grande
salah....

very interesting observation.

I will look into it. and if I have a chance I might include this in my things to work on too.

EG
kool and we can discuss its different aspects here as i see u are experienced

plus dont forget its at all time highs
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #4
  • Mar 14, 2008 7:04am Mar 14, 2008 7:04am
ok
we have a gr8 correlation between silver and gold.

they walk the same way(opposite to dollar)
now they way to look at silver is most of the times from a fundamental view because it is a commodity.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #5
  • Mar 14, 2008 7:18am Mar 14, 2008 7:18am
Salah what kind of spread are you working with? Spread is 400 pips on oanda, if the range is only 1000 pips, that doesn't leave to much room to cover 400 pip spread or am I missing something?

Plus looking at the Gold movements with silver, it doesn't seem as close as perhaps the Usd/chf vs eur/usd type correlations. Don't know if thats cuz of the spread that makes it look that way. Interested to hear what others think..
  • #6
  • Mar 14, 2008 7:22am Mar 14, 2008 7:22am
Quoting megamo
Salah what kind of spread are you working with? Spread is 400 pips on oanda, if the range is only 1000 pips, that doesn't leave to much room to cover 400 pip spread or am I missing something?

Plus looking at the Gold movements with silver, it doesn't seem as close as perhaps the Usd/chf vs eur/usd type correlations. Don't know if thats cuz of the spread that makes it look that way. Interested to hear what others think..
400 pips spread
are u sure
i got only 50 pips spread on spot and on future i have between 10 pips to 50 pips
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #7
  • Mar 14, 2008 7:36am Mar 14, 2008 7:36am
pretty sure, ran a small trade to check as well. Gold spread at about 40-50 pips. I guess I should check out futures, which broker are you using? I see Waterhouse on the MT4 has charting for gold trading on the cme
  • #8
  • Mar 14, 2008 7:40am Mar 14, 2008 7:40am
Quoting megamo
pretty sure, ran a small trade to check as well. Gold spread at about 40-50 pips. I guess I should check out futures, which broker are you using? I see Waterhouse on the MT4 has charting for gold trading on the cme
ORENTUS on the MT4
its a small firm that follows FXpert SA
here in Lebanon.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #9
  • Mar 14, 2008 7:59am Mar 14, 2008 7:59am
Quoting megamo
pretty sure, ran a small trade to check as well. Gold spread at about 40-50 pips. I guess I should check out futures, which broker are you using? I see Waterhouse on the MT4 has charting for gold trading on the cme
I'm using Waterhouse demo and they offer gold and silver as futures with a commission of 3 pips and 10 pips (the no-spread option) http://www.whcmarket.com/trc/specifi...scfd/spread-no
  • #10
  • Mar 14, 2008 9:17am Mar 14, 2008 9:17am
630 pips and bernanke hasnt spoken yet
we still have a long way to go.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #11
  • Mar 14, 2008 6:30pm Mar 14, 2008 6:30pm
hey guys
are there any experienced traders that traded silver.
it would be gr8 if we can share and discuss how to analyze its movements.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #12
  • Mar 15, 2008 9:54pm Mar 15, 2008 9:54pm
I'm not experienced with Silver futures but if you look at the charts every time it crashes straight down it moves back to and higher than its freefall price point. Its is a commodity that looks easier to trade than most main currency pairs. Imho.
  • #13
  • Mar 16, 2008 4:54am Mar 16, 2008 4:54am
Quoting pippy le pur
I'm not experienced with Silver futures but if you look at the charts every time it crashes straight down it moves back to and higher than its freefall price point. Its is a commodity that looks easier to trade than most main currency pairs. Imho.
exactly plus if u notice its daily range is not less than 600 pips.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #14
  • Mar 16, 2008 5:42am Mar 16, 2008 5:42am
with the current situation of the dollar, a lot of dollars are moving to gold or other commodities because it is considered safer in crisis times like the one is starting now.... so.. as we are in the beginning of the crisis... I think the uptrend for gold and silver is going to be maintained for a while. Why? Because the ones that move the market usually trade longer timeframes... and want to move money to a safer place but do not want to be moving it every day... so expect uptrend in gold and silver until finnancial situation changes in USA. which seems to be ... for a long period this time.
  • #15
  • Edited 6:58am Mar 16, 2008 5:52am | Edited 6:58am
I've been spreadtrading Silver for years now and found the volatility immensely profitable provided of course you're on the right side of the trade and you stick to reasonable stops.
I trade looking at North Finance and WHC Spot Silver MT4 charts, but I trade Silver using a South African SpreadTrading Platform which offers a good 35-60 pip spread (depending on news events)on the ECBOT Silver futures trading instrument.
You can check out my Silver trades (I call them live) on my journal:
http://www.forexfactory.com/showthre...45#post1905545

it is not really an instrument you'd want to keep trades alive on for days on end as it is really volatile of late, so most of my trades don't last that long even though it's taken off Daily or 4hr charts.
  • #16
  • Mar 16, 2008 6:11am Mar 16, 2008 6:11am
Experienced traders often advise against trading Silver as in comparison to forex it is a very small market and one big player can send the price tumbling or soaring.It 'reacts' to extremes at any hint of war/unrest as it is considered a 'safe-haven' investment.
In my experience Silver is a great long-term investment vehicle, but can be very profitable for "hit-and-run" type trades even if taken off the daily chart.You cannot trade Silver as you would forex.Your best bet would be to ,in my opinion, "hit and run" and not to worry about leaving pips on the table.
Many Silver critics want to "position" trade Silver like a lot of people set up long EURUSD positions over the past few years and constantly look to add to their long positions.With EU your bad trades can always be rescued by the uptrend but with Silver this is suicide.For example, in 2006 it fell from the then high by 5790 pips in 5 weeks before going back up to record highs!
  • #17
  • Mar 16, 2008 7:24am Mar 16, 2008 7:24am
Quoting Doji Star
Experienced traders often advise against trading Silver as in comparison to forex it is a very small market and one big player can send the price tumbling or soaring.It 'reacts' to extremes at any hint of war/unrest as it is considered a 'safe-haven' investment.
In my experience Silver is a great long-term investment vehicle, but can be very profitable for "hit-and-run" type trades even if taken off the daily chart.You cannot trade Silver as you would forex.Your best bet would be to ,in my opinion, "hit and run" and not to worry about leaving pips on the table.
Many Silver critics want to "position" trade Silver like a lot of people set up long EURUSD positions over the past few years and constantly look to add to their long positions.With EU your bad trades can always be rescued by the uptrend but with Silver this is suicide.For example, in 2006 it fell from the then high by 5790 pips in 5 weeks before going back up to record highs!
ur absolutely right i just enter for max of 200 pips but i dont lose stop loss
i hedge because i the volaitlity can always make up for the loss.

plus i realized it has gr8 correlation with gold which sometimes helps me catch a 100 pip run.
"what doesn't bankrupt me, makes me stronger" modern nietzche
  • #18
  • Edited 11:16am Mar 16, 2008 11:01am | Edited 11:16am
Quoting salah k.
ur absolutely right i just enter for max of 200 pips but i dont lose stop loss
i hedge because i the volaitlity can always make up for the loss.

plus i realized it has gr8 correlation with gold which sometimes helps me catch a 100 pip run.
The truly scary part about Silver is that in relation to $1000 Gold, it is W-A-Y undervalued and has a lot of catching up to do.Traditionally the gold-silver ratio works like this, you divide the Gold price by 16 to get the price of Silver.
If you take $1000 divided by 16, you get $62,50!!That means it has over 40 000 pips to go to catch up to a centuries old correlation!!
This is based upon a bimetallic standard, which was exercised when both gold and silver were used daily as money. The ratio was fixed between 15-16 to 1.
Believe me!! Silver ALWAYS (through the years) catches up to this ratio sooner or later, so whenever Ihear talk of a Silver top, I take it with a pinch of salt.
  • #19
  • Mar 16, 2008 11:08am Mar 16, 2008 11:08am
Price relation of 1:16 ?

You know the gold standard ended a while ago right?
  • #20
  • Mar 16, 2008 11:31am Mar 16, 2008 11:31am
Quoting Doji Star
The truly scary part about Silver is that in relation to $1000 Gold, it is W-A-Y undervalued and has a lot of catching up to do.Traditionally the gold-silver ratio works like this, you divide the Gold price by 16 to get the price of Silver.
If you take $1000 divided by 16, you get $62,50!!That means it has over 40 000 pips to go to catch up to a centuries old correlation!!
This is based upon a bimetallic standard, which was exercised when both gold and silver were used daily as money. The ratio was fixed between 15-16 to 1.
Believe me!! Silver ALWAYS (through the years) catches up to this ratio sooner or later, so whenever Ihear talk of a Silver top, I take it with a pinch of salt.
i dont think that ratio exists anymore
"what doesn't bankrupt me, makes me stronger" modern nietzche
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