We are reliable because:
- EF is holding licenses from Europe, Australia & Asia Pacific.
- Static, Low & Tight spreads.
- Trade Gold [XAU], Silver [XAG] & other Commodities.
- Minutely updated Gold & Silver News.
- Start trading with 200$ onwards or equivalent in your currency.
EFD Investments is an introducing broker of a reputed European company. We are online representative based in middle east region.
Our team members are serving clients from different parts of the world. We are instantly in touch with our Parent Company and reporting them on daily basis.
The duties of an IB is to generate the business by promoting and advertising the product of his company, therefore we don’t have any access on client’s money, as deposit and withdrawal matures between our Parent Company and clients directly with full of security and protection.
First of all, a short description about silver, which is a very strong commodity just like gold. We all know that gold and silver are the two commodities which have over all up trend. Main reason behind this is as population grows, people keep on buying gold and silver in the form of ornaments, for saving purpose or investment purpose and these two commodities are considered as safe heaven in Indian market as well as in International market. Apart from this, Silver is used in many other forms like in medicines, clothes, industrial equipments, currency notes etc.
Commodities also have down trend and their prices also falls but as we have noticed so far, they regain their prices after few weeks and months by getting back to their original trend of moving up. Based on this theory, we designed a strategy through which you can get profit whether price of silver goes up, falls down or moves in limited range
Have a look at the past year chart of silver so that you may get an idea about its trend and its price so far:
This is 10 year silver chart-ranging from May 2003 to May 2013. This charts clearly suggests that silver has over all up trend in last 10 years and it has minimum value of 4.48 USD per Ounce in May 2003(1 Ounce= 31.1 gram) and highest value is 48.70 USD per Ounce in May 2011. You can clearly see many downfalls in this chart but it regains its original upward trend after falling.
This is 5 year silver chart ranging from May 2008 to May 2013. This chart suggests that silver has lowest value of 8.8 USD per ounce in Nov 2008 and highest value is 48.70 USD per Ounce in May 2011. This chart also shows that silver as overall uptrend and it regains its trend even after down falls.
This is 1 year silver chart- ranging from May2012 to May 2013. It has lowest value of 22.91 USD in April 2013 and highest value is 34.96 USD in October 2012. You can easily see various uptrend and downtrend in last 1 year chart.
After reading these charts, we can easily conclude that the over all trend of silver is up and based on this theory, we designed a strategy which will be profitable for you whether silver goes up or falls down.
Suppose current price of silver is 25 USD per Ounce. Silver always moves in 1 out of below mentioned 3 trends and it will keep on changing its trend depending upon market condition and it’s demand and supply ratio.
1-Up trend If silver is in up trend, it will go from 25 to 28 or 30 or even more (depending upon its strength at that time).
2-Down trend If silver has down trend, it will fall from 25 to 21 or 20 or even below (depending upon its weakness at that time).
3-Sideway trend Sideway trend means silver will be range bound and will keep on moving between fixed value. For example, it will be considered as range bound if it keeps on moving between 25 to 28 for many days or weeks or months.
Silver Trading Strategy
According to silver previous records and charts, we designed a strategy, which will help you in getting good profit, whether silver is in uptrend, downtrend or moves sideways.
Now have a look at our trading strategy:
Suppose current price of silver is 25 USD per Ounce. Here 1 pip means 1 point. For example if silver goes from 25 to 26, we will say that it moves 1 pip up and if it falls from 25 to 22, we will say that silver falls 3 pips.
Now our trading strategy suggests you to buy silver with every 1 pip gap, whether it goes up or falls down and close that lot with 1 pip profit. Suppose silver is at 25 USD. Now buy 1 lot of silver at 25 USD and close it at 26 USD (1 pip profit). Keep on buying silver with a gap of 1 pip and closing it with 1 pip profit, whether it goes up, falls down or move sideways, you just have to keep buying silver at predefined rates and closing it at predefined profit rates.
Profit in uptrend
If silver is in uptrend and suppose it reaches 30 from 25. According to our trading style, you will buy silver at 25 which you will close it at 26. Then you will buy at 26 which you will close it at 27.Then again you will buy at 27 which you will close at 28. This cycle will go on till 30.
NOTE - If you are buying silver at 25 and closing it at 26 and if again it falls to 25, you have to buy it again after closing previous lot. In this way you can get many cycles at same price. You may get same cycle once or twice or thrice or even more, depending on market and its movement. You just have to keep striking same rate again and again after closing previous deal at same rate. If you follow this strategy you will get profit if silver is in uptrend
Profit in down trend
If silver is in down trend, it may fall from 25 to 20. You just have to follow same strategy. Keep on buying silver with pre defined rates. In this case, you have to buy silver at 25 with closing rate of 26. If it falls to 24, again buy it with closing target of 25. If it touches 23 you have to buy it again with closing target of 24 and so on.
Now you will ask - how will I get profit in downtrend? Here goes the answer: Silver is a very strong commodity. It rarely falls like this without any fluctuation. While falling from 25 to 20, it should keep on fluctuating and in this fluctuation, you will get profit in few of your deals and we knows, finally silver has to move up as it has over all upward trend. So after reaching 20 or 18, it should regain its original trend and will come back to 25 and your all deals will be closed. If you get any cycle in this fall, capture it and again buy it at predefined rate. It may give you many fluctuations before reaching 20. You just have to strike every fluctuation. If you capture all fluctuations, it will give you good profit and by chance it falls directly to 20 without giving any fluctuation, it will finally move up as its over all trend is up. In this way, you can get profit in down trend also.
Profit in sideways trend
Sideway trend means silver will be range bound and will keep on moving between fixed values. Suppose these values are 25 and 28.Silver will reach 28 and the will fall to 25 then again will go to 28 and so on. You have to follow same strategy. Buy silver at 25 and close it at 26. Then again buy at 26 with closing target of 27 and so on.
If silver is in side ways, it will fall from 28 to 25. Keep on buying at pre defined rates. Buy at 27 with closing target of 28, and then buy at 26 with closing target of 27 and so on. It’s in sideway trend and will move again to 28 and your all deals will be closed.
So if you follow our strategy and trade accordingly, you will get profit whether silver goes up, falls down or move sideways.
NOTE-Whether silver is in up trend, down trend or move sideway, you have to keep buying silver at predefined rates suggested by us and keep closing at rates suggested by us. You may get same cycle again and again. For example, you bought silver at 25 and sold it at 26. It may again fall to 25 then again you have to buy and close it at 26. You may get same cycle many times depending on market and its movement, and you have to do this thing every time, whether silver is in uptrend, downtrend or sideways
Now the Investment Plan
This trading is based on margin money. You need not to pay 25 USD to buy silver at 25 USD rate. In silver 1 pip per lot means 10 USD jump. Suppose you are buying 1 lot of silver at 25 USD and you closed that lot at 26 USD. You will get 10 USD profit.
Now the investment plan:
If you are investing 500 USD and bought 1 lot of silver at 25 USD. If silver goes to 26 USD and you closed your deal, you will get 10 USD profit. But if silver falls from 25 USD to 20 USD. It means 5 pip falls and here 1 pip per lot means 10 USD. So 5 pips fall means 50 USD loss. Your investment is 500 USD and your 1 deal is in 50 USD loss, then your remaining free balance will be 450 USD.(Free balance=Total investment-investment in unclosed deal). This is the basic concept of margin money trading. That 50 USD loss will keep on increasing if silver goes away from your buying rate and it will keep on decreasing as it reaches close to its buying level. We knows that over all trend of silver is up and it will come back to its buying level sooner or later.
So if you have 500 USD and you are planning to buy silver with gap of 1 pip and silver falls from 25 to 20 USD, Your account will be like this:
- 1 lot bought at 25 USD and it will be showing loss of 50 USD.(Silver falls 5 pips and 1 pip = 10 USD).
- 1 lot bought at 24 USD and it will be showing loss of 40 USD.
- 1 lot bought at 23 USD and it will be showing loss of 30 USD.
- 1 lot bought at 22 USD and it will be showing loss of 20 USD.
- 1 lot bought at 21 USD and it will be showing loss of 10 USD.
Here your total loss is 50+40+30+20+10 = 150 USD. Your total investment was 500 USD and your figure of loss is 150 USD. You are still in the game.
In this way if silver falls from 25 to 15 USD, you total loss figure will be 100+90+80+…+10 = 550 USD. In this case your total investment will not be enough to hold your total losses and hence, you will loose all your investment and your account will be 0.
As soon as your figure of loss reaches 500 USD, which is same as your investment, then your account balance will become 0 and your will loose all your investment which you can never recover. You just have to decide your buying levels and gap between two deals according to your investment, current rate of silver, its trend and its minimum level of fall. We will help you in designing proper strategy according to your investment and silver current price.
If you are planning to invest good amount, then you can go for big lots like 2-3 lots at same rate. Your profit will be doubled or tripled according to your lot size or you can go for small gap between 2 deals. Smaller the gap, more fluctuations you will get.
Average movement of silver per day is around 0.30-0.50 cents. It may move 1-1.50 USD per day but it happens rarely or at the time of big fundamental news in International market.
If you are planning to buy silver at gap of 1 pip and close it with profit of 1 pip( planning to buy at 25 and close at 26 and so on), then you may get 3-5 deals per month and 10 USD profit per deal(Number of deals depends on market and its movement. You may get more deals or fewer deals. It’s just a rough idea so that you may know about market and its volatility.)
If you are planning to buy with 0.50 pips gap with 0.50 pips profit target(buy at 23.50 close at 24 then again buy at 24 close at 24.50 and so on), then you may get 6-8 deals per month. So the basic thing is you gap between 2 deals will decide your monthly profit. If gap is more then you will get less profit but if gap is less then you will get more profit.
But gap also decides your figure in loss. If you are planning to trade with gap of 1 pip between 2 deals and if silver falls 5 pips, your number of deals will be 5 only. But if you are planning to open deals with gap of 0.50 pips and silver falls 5 pips, your deals in loss will be 10.
NOTE- This market is very risky and it’s not advisable to start trading without consulting us. Inform us about your total investment figure and we will design proper strategy for you according to your investment, silver current rate and market’s trend. We will also suggests you good buying and closing levels so that you can get maximum output from this trading strategy.
There is only 1 possibility of loosing money in this market.
If you keep on buying silver with small pip difference which is against your equity, then you will definitely be on the loosing side. We will make out proper strategy for you depending upon your equity, current silver price and its trend. You just have to follow us and trade accordingly. Normally, silver moves around 0.30-0.50 pips per day but in rare cases there is tremendous volatility in market and silver can even fall 2-3 pips down or jumps 2-3 pips up. So you have to keep equity in your account and you should be mentally prepared for sudden and unpredictable downfalls.