Retail traders' hastiness

Ashraf Laidi AshrafLaidi.com

Be aware of making typical errors committed by retail traders of prematurely predicting turning points. Each time gold drops $70-$80 or Silver by $8-$12, they rush to call the end of the rally and the beginning of the correction.

In the early hours of last Wednesday, XAU/USD jumped $120 to $4888 before slumping $130 to $4755, causing many to "call" the start of gold correction. Less than 24 hrs later, gold jumped to $4960. Yesterday (Monday evening Europe) many rushed to call the top in gold & silver. Indeed, yesterday, silver had soared more than £13 or 11%, the highest percentage daily rise since 17th September 2008, the day of the Lehman Bros Collapse. On Monday, XAGUSD dropped to 101.92. Where is it now? 112.67

The greater fallout will surely come. Will it be after Wednesday's FOMC decision?

So what did I tell our WhatsApp Bdcst members? See below: as long as the Gold/Silver ratio did not extend to 40, silver will remain on the rise. Why 40?

Author

Ashraf Laidi

AshrafLaidi.com

Ashraf Laidi is an independent global markets strategist with over 15 years' experience. He is author of "Currency Trading & Intermarket Analysis", and founder of AshrafLaidi.com.

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