Someone I know bought 500K worth of SLV yesterday. He told me free money is given out by investing in silver, like a QE for traders. I am kind of hesitant at this point to follow the herd but it may turn out that I am just stupid. Thinking too much and too logically may not be a sign of financial health though. What do you think? Go for it?
Yes. Maybe put a position on and wait for a pull back (seems to be rather infrequent though!) to add to it.
Trend following sucks. Silver this year is the greatest proof of this. You have to trade against the trend and exit each trade after 5 max 10 ticks profit. almost all traders do this, they can't be wrong.
Alot of traders get their heads all screwed up micro-managing trades in instruments that are inherently chopping and very forgiving for their impulsive "need to fade moves" mindset. It's why most guys who've spent too much time churning stocks for quick bucks or trading stock indicies are literally roadkill for any commodity market, and oftentimes for metals as well. Anybody who spends enough time looking at historical commodities charts has a healthy respect for how strong trends can be and have been.