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Baseline Silver Trading Techniques Explained for Beginners

Silver trading is one of the most popular techniques, while the asset itself appears to be one of the most tradable instruments. People globally can sell or purchase silver at higher volumes and tighter spreads. Besides, silver trading has proved to be one of the most efficient long-term approaches in reference to commodity trading tactics.


However, a long-term silver trading strategy is not the only one to let users make some good profit. Intraday traders can also try different modalities and apply different approaches to make a profit within a short or medium time frame thanks to increased volatility.

Today, we will find out how to trade silver and the best tactics to use for day traders.

Choosing the Best Silver Trading Strategy

As stated earlier, silver is one of the most volatile and highly traded assets. This fact brings enhanced flexibility for traders with different silver trading strategies and techniques. This time, we discuss how to trade silver online using intraday modalities. If you are not new to the financial market, you will find them quite easy to apply and effective at the same time.

Trend Silver Trading Strategy

A simple 3-stage approach involves three baseline steps:

  1. The first step is to determine a trend.
  2. The second step is to avoid the noise and identify signals that highlight the trend direction.
  3. The last phase is to set take-profit and/or stop-loss orders.

Now, let us have a closer look at each of these steps.

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1. Determining a Trend

The market makes unexpected and extreme price moves all the time. It happens especially now in the face of the pandemics and the Russian-Ukrainian crisis. So, the ability to see the asset’s highest highs and lows can be crucial.

For example, the uptrend market is identified by several higher lows and higher highs in a row. Vice versa, a series of lower highs and lower lows represents a downtrend market.

2. Avoid the Signal Noise

You will need some tools to identify precise and accurate signals that show the trend direction. The task is quite challenging considering all that noise you need to filter within a short period. This is where trend lines and other technical indicators may help. They include:

3. Use Risk-Management Tools

It does not matter if you are an expert or do not know how to trade silver online, using risk-management tools is vital. In terms of silver trading, placing take-profit and stop-loss orders seems to be the best option, especially when you use a trend silver trading strategy. Do not risk more than 1% of your capital. A good reward starts from 1.5%.

Range-Bound Silver Trading Strategy

While trend silver trading strategy is the best choice for the rapidly changing market with extreme moves, range-bound techniques work better in the face of financial markets in consolidation. It means a silver market does not perform obvious up or downtrend moves. The approach also considers 3 crucial steps to complete:

  1. First, you need to identify the range.
  2. At the second stage, traders have to sort out specific signals while avoiding the noise.
  3. To complete the process, you need to execute a running order with take-profit and stop-loss orders placed accordingly.

Identifying the Range

It all starts with determining the range. This is where your silver trading strategy will require additional tools. Traders need to identify the support and resistance areas. For a support zone, keep all major lows connected horizontally. To determine the resistance zone, do the same with a series of highs.

Filtering Signals

The principle is quite simple. Once the price has moved to the bottom range, it is a sign to buy silver. When it moves to the higher range end, you need to sell the asset. The key benefit of silver trading here is that users can take the advantage of tighter spreads and higher risk-reward ratios.

Executing Orders

Keep yourself protected, as the price can break out the support and resistance levels. This is where take-profit and stop-loss orders may come in handy. If you buy silver, you need to place the stop-loss below the support level. If you go short, the stop-loss must be placed above the resistance level.

Baseline Silver Trading Tips for Beginners

If you do not know how to trade silver online, consider the following:

  • To benefit from reduced costs on the spread, it is better to trade silver within major trading timeframes. As a rule, they are between 1 pm and 11:55 pm from Monday to Thursday, while on Friday silver trading should be performed between 1 pm and 23:50 pm (GMT);
  • Major risk-management tools involve take-profit and stop-loss orders. Traders should not risk more than 5% of their overall capital when opening trades.
  • Technical analysis, charts, and indicators will help you determine preferable market conditions. Do not ignore them.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.