This silver trade was one of my better executions – a solid day trade that followed my plan from entry to exit.

The Setup

I’d been watching silver (XAGUSD) for a few days and noticed it was in a strong uptrend. The price had been making higher highs and higher lows, which is exactly what I want to see before entering a long position.

On November 7th, I saw silver pull back to test a support level around the 20-period moving average on the 1-hour chart. The pullback looked healthy – not a reversal, just profit-taking before the next leg up.

Why I Entered

Several factors aligned for this trade:

• Strong uptrend on both 4H and daily charts
• Dollar weakness – I’d checked DXY (US Dollar Index) and it was falling, which typically helps silver
• Clean bounce off support with a bullish engulfing candle
• Volume confirmation – buying volume increased on the bounce
• Risk/reward looked good – potential for 2:1 or better

I entered my position at a good price, risking about 1% of my account with a tight stop loss below the recent swing low.

The Trade Execution

Entry was smooth – I got filled at my limit order without any slippage. I set my stop loss about 15 points below entry to give the trade room to breathe while keeping risk controlled.

My initial target was around 25-30 points away, but I decided to actively manage this one rather than just set-and-forget.

How It Played Out

Silver did exactly what I hoped – it bounced strongly off that support level and continued the uptrend. Within a few hours, I was up nicely and moved my stop to breakeven to lock in a risk-free trade.

As price pushed higher, I watched the momentum carefully. When I noticed volume starting to decrease and price action getting choppy near my target zone, I decided to take profits rather than get greedy.

I closed the position with a +£17.24 profit, which was about a 2.3:1 risk/reward ratio on the trade.

What Went Right

This trade worked because:

1. I followed my plan – didn’t rush in, waited for confirmation
2. Traded with the trend – didn’t try to be clever and fade it
3. Good risk management – kept my stop tight and moved to breakeven early
4. Took profits when momentum faded – didn’t get greedy waiting for more
5. Checked fundamentals – dollar weakness supported the silver move

What I Could Improve

While this was a winning trade, there’s always room for improvement:

• I could have sized up slightly given how clean the setup was
• Maybe held a partial position for the longer-term move (it kept going after I exited)
• Could have used a trailing stop instead of manually managing

Key Lessons

Trend following works! This wasn’t a fancy strategy – just solid trend-following with proper risk management. Sometimes the simplest trades are the best trades.

Patience pays off. I didn’t chase the breakout – I waited for the pullback to support and got a much better entry price.

Managing winners is a skill. Knowing when to take profit is just as important as knowing when to enter. I’m learning to read momentum and exit before the move is completely done.

Emotional Management

I felt confident but not overconfident during this trade. The setup was clear, my plan was solid, and I stuck to it. When I was in profit, I felt tempted to take it too early (at +£10), but I reminded myself to give the trade room.

Moving my stop to breakeven helped me relax – once I knew I couldn’t lose money, I was able to let the trade run more freely.

Next Steps

This is the kind of trade I want to replicate:

• Clear trend
• Clean pullback to support
• Good risk/reward
• Disciplined execution

I’ll keep watching silver and look for similar setups on other metals. The key is not to force trades – wait for these A+ setups and execute them well.