Silver is considered as one of the precious metals that is often used as the investment commodity. There are an array of silver trading strategies out there, however, the two most common and trending trading strategies adopted by a majority of silver investors are Range Trading and Trend Trading. Whether you are a professional silver trader or you have just entered this investment realm, it is best to use technical and fundamental analysis to get a better prediction on the future silver prices. Before we discuss the strategies of silver trading, let’s have a quick glimpse at the importance and need for silver trading for investors.

Why should the Investor Consider Silver Trading?

Considering the tight spreads as well as high-trading volume, there’s no denying that silver is one of the highly tradeable investment commodities. As the demand for silver is relatively less than gold in the current times, silver is more volatile than other metal commodities. The surprising fact is this volatility of silver helps the Intra-day traders to use take full advantage of huge intra-day market swings.

Apart from being famous in jewellery and accessories market, silver has a plethora of industrial and commercial uses. This precious metal, which also happens to be an amazing investment commodity, is found in our daily-use appliances such as mirrors and electronic items. Silver is also used in the making of dental alloys. A major portion of the demand for this precious metal comes from industrial sectors as well as the investors. Individuals can trade silver anywhere from Monday to Friday. Let’s get started with the trading strategies for silver:

Open Free Silver Trading Account

Determining the trend

A trending market can be defined as the market that produces new price extremes frequently. Trading silver becomes much effective and easier when you comprehend the trending markets properly. Fortunately, there are multiple ways of finding the direction of a trend such as with the help of moving averages or by drawing trend lines.

Filtering the signal in the trend’s direction

As soon as you have determined the direction of the trend, it is time to move to the next step i.e. filtering the signal in the direction of the current market’s trend. You can find a plethora of tools that could be used to ascertain the buy and sell indications in the market. One such effective tool is the trend lines. Drawing trend line is one of the most common ways of identifying the trading signals. But you can also use other tools for the same. For example, Simple Moving Average, Stochastic, Moving Average Convergence Divergence, and Relative Strength Index are four crucial methods of identifying the current market trend.

Make sure that you choose the right indicator (probably the one you are comfortable with) and buy and sell the signals that form in the direction of the current trend line. The key to a perfect silver trading decision is filtering the signals and taking only the trades that generate in trend’s direction.

Also Read: Strategies for Trading the Gold-Silver Ratio

  1. Setting Stop-losses and take profits

Whether it is silver or the other investment commodity, the main feature of a successful trader is his risk management decision. The better you manage your risk, the lesser the losses you may bear, and the higher the profits you earn. The best possible way to manage your risk is to use stop-losses and take profits.

  1. Range-bound Trading Strategy

As the name itself suggests, the range-bound strategy is used in the silver trading market when there is consolidation period in the market (a time when the market is likely to range-bound). It is important to note that a silver market doesn’t always follow an uptrend or a downtrend path. You may find it in the consolidation period, i.e. when the prices of this commodity move sideways. But no need to worry now! As there are range-bound strategies developed, traders can manage their silver trading decisions in the consolidation period too. The three important steps to silver trading in a consolidation period are as follows:

  • Determining the range
  • Filter your signal
  • Carry out the silver trading process and set stop-losses and take profits to minimize your risk and ensure a profitable trade.
  1. Use Fundamental and Technical Analysis to Trade Silver

The moment the investor is certain about the direction of the trend and the range of the commodity, it is time to use certain technical indicators to get the signals for entering the silver trading market. Generally, the technical indicators you might need to use will depend on the silver trading strategy you have adopted. However, the two most common technical indicators that are widely used by metal traders are price-pattern and relative index strength (RIS).

Using technical indicators is the best way to find the signals for entering the silver t market. However, it does not ensure that your investment is going to be successful. For that, you must use stop-losses and take profits.

Also Read: 5 Surprising Crude Oil Facts You Must Know

Also Read: Top Strategies for Trading Natural Gas – Gill Broking

Start Trading Now

Share this Post

Get The Latest Updates

Related Posts

The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

We are here to assist you !
Fill out the form and Start Trading...