Saturday, August 31, 2013

Profiting from the trends in the mining and metals sector

The charts below show some of the recent uptrends we have identified among our group and traded, with decent results so far.

These are all within the same sector, and as you can also see, generated some significant downtrends which you could also profited from earlier this year. 

If you were so inclined to short these stocks several months ago, the trick was to sit in the position until the downtrends had exhausted themselves, and an appropriate exit signal was triggered. Only then would you wait to see if a new uptrend would present itself.

In this way, you maximise the gains from a well developed trend. If you prefer to only trade on the long side, having the patience to wait for an entry signal would eliminate the temptation to try and pick the bottom of the price movement, thereby preserving your capital. Now that we are in these new uptrends, we will continue to hold until, once again, the trends have finished.

If you would like to know more on how we work as a group, go about identifying these setups and trade them, click here to find out more.

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