Leverage-more bang for the buck

Most of the time leveraging up is the last thing one wants to do in trading and investing. The goal in any market play is to get consistent. After that either trade frequency or trading size (amount of exposed capital) will take care of the rest. There are some sophisticated ways of pyramiding in strong directional moves that allow for low risk models. Most of everything else is not low risk principle based. Focus at all times needs to be risk control. To be alive another day to participate and this ideally on a smooth equity curve, should be the prudent market players goal. That being said there are ways to get ones edge a bit widened.Leverage-more bang for the buck.

The following is presuming that there is an edge, meaning this is for astute market players who are well versed within their market niche. It is not wise to up ones game on leverage, if one still needs to hone ones game.

Illustrating on the silver market one such way to get more bang for the buck is to get beta by looking for leverage within the sector. We have spoken about our quad exit strategy in the past, or how to use the concept of leading and lagging instruments within a sector; picking entries and exits from a precious metal related to Silver, like gold for example, if an additional edge warrants for such action.

In today’s chartbook we want to show how related instruments like silver mining stocks can be a true gem to leverage up.

Here are examples in regards to the last steep daily up leg of silver:

Daily chart of silver 7/26/2019, steep move up:

Silver in US-Dollar, daily chart as of July 26th, 2019

Silver versus the dollar-tricky to get into this second leg.

Avino Silver & Gold Mines – July 26th 2019, daily chart, good risk reward:

Avino Silver & Gold Mines, daily chart as of July 26th, 2019

ASM. If you were late in the game but wanted in, the not yet completely filled gap (1) and the above “air hole” leaving room to the next resistance /distribution zone(2), allowed for a low risk entry(3). No other instrument gave such late entries in this bull run at this low risk. A true leverage point.

7/26/2019, First Majestic Silver Corp, buying dips:

First Majestic Silver Corp, daily chart as of July 26th, 2019

AG, If you didn’t quite get on board at the lows of this daily bull run this silver stock provided for a low risk second leg entry. The retest of a break away gap(1), and even the anticipated breakout play(2) gave the astute trader such an opportunity.

Endeavour Silver Corp, daily chart – July 26th 2019; amazing returns on low risk:

Endeavour Silver Corp, daily chart as of July 26th, 2019

EDR, the true gem! While getting into silver (XAGUSD) as a second leg entry was no easy feat, executing on a solid triple bottom in Endeavour Silver Corp, made this a preferred trade. Not only was risk in check but the returns quite stunning. Why? Well let us compare:

July 26th 2019, silver- not easy to catch this leg:

Silver in US-Dollar, daily chart as of July 26th, 2019 b

A similar entry on XAGUSD got one in at around $15.40 for a dollar or so profit. A $2.30 entry on EDR would have provided mutually for a one dollar return. We don’t have to point out so that this means a difference of ones money exposed on XAGUSD returning a 6.5% profit, versus a profit of 43.5% on EDR. We consider the additional risk quite in balance to a return difference of this magnitude which can be further balanced with proper money management (= smaller position size).

When there is clarity about a move of an instrument that you find confident trading, it is worth while to think outside the box. Looking for neighboring opportunities to create that extra edge can pay off handsomely. In the field of Silver and the stock market some of your choices are:

Endeavour Silver (EDR) Fortuna Silver (FSM) Hecla Mining (HL) First Majestic Silver (AG) Avino Silver and Gold (ASM) PanAmerican Silver (PAAS) Wheaton Precious Metals (WPM) SSR Mining (SSRM) MAG Silver (MAG) Global Silvers Miners ETF (SIL)

This shouldn’t limit your horizon in there being a vast array of trade able objects from ETFs to options, forex to physical delivery to only name a few.

Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g

All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.

Important Trading Risks and Earnings Disclaimers - Terms of Use

RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.

EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.

Terms of Use: Your use of this educational website indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions and trade at your own risk.

Recent Posts

Stay Up-To-Date with New Posts

Search By Tags

join my free

telegram Group

Mentorship

packages

download my

free book