During a consolidation phase in any stock or market it’s time to keep ones composure and not let your emotions get the best of you. Whatever your trading discipline is from Elliot Wave, Cycles, Gann or countless other trading systems, you have to have faith in what your trading system is telling you to do. You can have the best trading system in the world but if you don’t have the discipline to execute the game plan that is being laid, you are doomed to failure.

There are no 100% profitable trading systems that I’m aware of which means you are going to have to learn how to take some losses from time to time. It’s just the nature of the game we choose to play. It would be nice if a stock we are invested in could just go straight up day after day so we wouldn’t have to make any decisions on whether to hold or sell. We wouldn’t have to worry about our emotions getting in the way either. Life would be so much easier.

Always keep in mind that we are playing against the best and brightest minds in the world that have access to computers with specific trading programs that we can only dream of. They could care less if you lost every single dollar you ever put into the markets as long as they get their fair share. To say it is a dog eat dog business is and understatement. With that being said lets look at some PM stocks.

During a consolidation phase is always a good time to look at what stocks have gone up the most, which ones are lagging and which stocks may be correcting into an important low risk buy area which is what I want to focus on. Many times you can put in a stink bid that might be hit if investors emotions become to far out of wack. The main thing is to have patience and let the stock come to you instead of chasing it.

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