Justin Smyth: The Bullish Uptrend for Gold has Much Further to Run
Justin discusses becoming interested early on in markets after his parents got him a savings account. During high school, he started reading the business pages and began investing in mutual funds and stocks during the tech bubble. He made some money but promptly lost it; after that experience, he started learning more about trading and trading strategies.
Stan Weinstein’s book “Secrets for Profiting in Bull and Bear Markets” answers some straightforward questions about how markets work, which sectors are active, and trend following. The system uses weekly price action and volume to help you understand the four stages of markets. Volume can give you an idea of what the big players are doing in the market.
Picking bottoms is difficult in any market. After a bear market, there is a lot of overhead resistance from investors who have lost money. That selling pressure can take a long time to overcome. Even though the market might be cheap, you want to avoid this period since it may go nowhere for an extended period.
For gold, Justin caught the most significant parts of the recent uptrend from June through September of 2019. Right now, he is waiting for a continuation of the breakout for gold and silver.
Trading is a very emotional experience, and having the discipline and a sound trading system is key to being successful. Too much information about markets may confuse you. Don’t change your style from week to week, instead refine your process.
Uranium has been a frustrating sector in which to buy. We are in a long-term sideways to lower grind that has not been able to break out into a bull market. It’s a good idea to be out of that market right now.
Talking Points From This Week’s Episode:
• Lessons from his early trading experience.
• What makes Stage Analysis a useful trading system.
• Why bottom picking can be risky.
• His opinion on uranium and why he remains on the sidelines.
Justin Smyth is the editor of www.nextbigtrade.com, and the YouTube channel nextbigttrade. He believes that identifying trends and changes are one of the keys to successful investing. Justin uses charts to identify these patterns. He tries to take a simplified approach to technical analysis, as often it produces the most understandable and actionable results. Justin graduated magna cum laude with a degree in Electrical and Computer Engineering.
He has a free stock screening tool on his site based on stage analysis. Also, he has a list of his favorite books on his site.