Nice week for Gold : It’s All about Sentiment

I wanted to take a bit of time in this post to discuss one of the most important things that those wishing to be successful in trading/investing need to learn, namely detecting shifts in sentiment. Those of you who have been reading my work for a while will be familiar with my constant reference to this topic. It is primarily for some of the newer readers that I wanted to write this but also to reinforce the concept in the minds of some of the more seasoned hands. Sentiment is what moves markets. Never forget this. Bullish sentiment drives prices higher; bearish sentiment drives prices lower. It matters not what we MIGHT THINK the current fundamentals happen to be; that is irrelevant. Price will move in the direction that the majority of market participants happen to think it should move in; not in the direction that one’s own understanding of the fundamentals dictates it should. Understand this and you are well on your way to becoming profitable.

First published here: Nice week for Gold : It’s All about Sentiment