Looking at the recent movements of platinum and silver, many people want to adjust their strategies to keep profits in line with the trend. This idea is very normal, but I need to pour some cold water on it.
Being fully caught in an entire wave of the trend is indeed tempting—who wouldn't want that? But as tempting as it sounds, real trading decisions must come back to reality. How are platinum and silver performing right now? Extreme fluctuations of 2 standard deviations, or even 3 standard deviations. This is no small matter.
Taking silver as an example, such a trend level has only appeared 3 times in the past 45 years. Think about the probability of that.
Don't misunderstand my point—I am not against giving the market more room in trend trading. Truly, I am not. What I want to say is a fact: the current movements of silver and platinum are not typical trends. In such extreme market conditions, staying cautious is the wise choice. Greed is easy, but a single retracement can wipe out the previous profits.
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GasBandit
· 5h ago
Extreme volatility is like this—one misstep and you can lose everything. I've seen too many greedy people get slapped in the face.
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ETH_Maxi_Taxi
· 12-30 11:50
Normal trends and extreme fluctuations really can't be treated the same. The author is right about this. I previously suffered a loss in silver; my greed caused me to give back three months' worth of profits in one go. Now I am much more conservative.
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SchrödingersNode
· 12-30 11:45
Only 3 times in 45 years? Damn, that's a pretty extreme probability, but the rarer it is, the easier it is to blow your account, right?
Looking at the recent movements of platinum and silver, many people want to adjust their strategies to keep profits in line with the trend. This idea is very normal, but I need to pour some cold water on it.
Being fully caught in an entire wave of the trend is indeed tempting—who wouldn't want that? But as tempting as it sounds, real trading decisions must come back to reality. How are platinum and silver performing right now? Extreme fluctuations of 2 standard deviations, or even 3 standard deviations. This is no small matter.
Taking silver as an example, such a trend level has only appeared 3 times in the past 45 years. Think about the probability of that.
Don't misunderstand my point—I am not against giving the market more room in trend trading. Truly, I am not. What I want to say is a fact: the current movements of silver and platinum are not typical trends. In such extreme market conditions, staying cautious is the wise choice. Greed is easy, but a single retracement can wipe out the previous profits.