Trade Summary

• Trade Reasoning: Trailing 5% Stop Loss Triggered

• Time Held: 30 Months

• Total Return: 80.2%

• APY 26.5%

Date	Action	Price	Gain/Loss
Aug-22-2018	Buy	$13.85	N/A
Feb-26-2021	Sold	24.95	80.2%

Trade Summary

I did well in this trade - one of my best performers on a percentage return. I managed to hold and exit at just about the top, one of the rare wins I can actually feel good about. I did hold this position for a very long time at 30 months. At just shy of 3 years I will say that is longer than my normal hold if things are going well, but but I am a bit of a silverbug at heart so I always believed silver was underpriced. It was a bit of a ride and honestly took much longer than I initially thought it would. It started off bad, and I was down about 7% pretty early in the trade, with commodities I am more comfortable holding long term losses as they are very unlikely to go to 0. When things picked up, I almost sold when it was a 30% gain when it hit $18, but I decided to hold. My reason for holding was not based on sound logic and reasoning, but more emotion. The rest of my holdings were crap, and this was the only green spot to look at. I felt at the time, if this did well, while they fell, I would be happy to hold this as it fell if it meant my other investments were gaining.

Covid-19 - Everything dumps

I felt foolish with COVID hit and I went from 30% up to down 10%. A 40% swing can have you really wondering what you think your doing trading. Of the 3 actions I had, 1) Panic sell, 2) Do nothing and avoid looking at my accounts, 3) double down and invest every spare penny I can find, I was a solid #2. While I miss a lot of profit, my default action of inaction has treated me well over the years. The act of NOT SELLING has probably given me most of my long-term gains.

When Silver took that jump in the summer I started to think about selling. I was thinking it should continue to climb, and I started to build an exit strategy at $30, but it never got there. It wasn't until the year of 2021, and my risk mitigation strategy kicked in did I get out at a good time. I sold at $24.95, about 10% from the top of the fake WSB pump, but still felt really good about when I got out.

Trailing Stop-Loss in Action

After the fake WSB pump for silver that made it touch $28, I decided to see if a trailing stop loss might help me catch another wave if the new story continued. I was hoping for some FOMO and pump and the dump coming when the market is actually open to get my order executed. I entered my order on Feb 8th and I didn't have to wait long.

The order was triggered after it hit a high of $26.27, and fell to $24.95. Luckily for me - it has continued to fall another 6.39% since I closed my position.

Future Silver Positions

I still like silver for more potential growth in the coming years. I think its uses in manufacturing, electronics, medical, combined with its physical scarcity will continue to drive demand for the commodity. The current chart looks like may continue to fall in the near future until it finds better support levels.

As I look at a possible re-entry into silver ETF, @tbnfl4sun pointed out I should consider the ETF PSLV as a better fund for my money. I look forward to investigating both funds prior to an entry and seeing which one fits my needs the best. I was originally going to include my thoughts in this post, but the research led me down some rabbit holes, and I need to do more and consider what I find.

Either way - if silver tank back under $20 I will enjoy adding some physical silver to my holdings. Has anyone considered getting a LEO Silver round minted?

sincerely, @cluelessinvestor - aka a random nobody on the internet spewing nonsense

This post NOT financial advise, it contains my personal opinion and experience and is intended for educational purposes. Perform your own research and analysis prior to making investment decisions.

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