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Re: Gold Update: The small trade within the big trade
I can't understand what the hell some of you guys were doing buying gold at $1000 after seeing it rise from $650 in barely six months. One should never buy anything when the price action has been strongly bullish for months. You are chasing a trend and that's dangerous. If you had very little exposure to gold when such a parabolic rise started, you should have resigned yourself to waiting it out and buying the month's long flat price after that parabola crashed!
And buying more in multiple purchases spaced closely together in price, while the price is dropping hard? What the heck is that? You are your own worst enemy piling into a volatile asset that way. Gold could well see a prolonged downturn here and your collected buys could end up deeply underwater! Safest time to buy is after the plunge in prices, when you encounter a long interval of basing action - just exactly the way prices were all through the summer of 2007.
It costs maybe $800 - $1000 a year to simply buy the seasoned market watching skills of a half dozen gold monitoring newsletters. Looks a little pricey on the surface of it. But many people here routinely throw that kind of money away on quite risky puts and calls suitable only for professional traders - yet these same people willing to be adventurous on puts won't buy a couple of newsletters to take out some insurance on their buy and sell timing affecting tens of thousands of dollars? This order of priorities sees spending money on gold price advisor newsletters as 'profligate', but thinks of any loss from mis-timed market puts as merely 'the cost of doing business investing in the PM's? Nuts.
These advisors were warning not to put any new money into gold for the past two or three months already!
Using puts and calls instead of simply waiting for safe entry windows in the gold price action, probably means many of us who are not professional traders are simply thrashing around spending several thousand dollars a year on such strategies, with uncertain results. Bottom line: If you have even $20K invested in the gold market, pay up some money for a little professional guidance as to when gold is overbought or oversold! You wouldn't think of owning a home without fire insurance - why consider having a big chunk of your savings in a volatile asset without taking out a little insurance at least on buy timing decisions?
I can't understand what the hell some of you guys were doing buying gold at $1000 after seeing it rise from $650 in barely six months. One should never buy anything when the price action has been strongly bullish for months. You are chasing a trend and that's dangerous. If you had very little exposure to gold when such a parabolic rise started, you should have resigned yourself to waiting it out and buying the month's long flat price after that parabola crashed!
And buying more in multiple purchases spaced closely together in price, while the price is dropping hard? What the heck is that? You are your own worst enemy piling into a volatile asset that way. Gold could well see a prolonged downturn here and your collected buys could end up deeply underwater! Safest time to buy is after the plunge in prices, when you encounter a long interval of basing action - just exactly the way prices were all through the summer of 2007.
It costs maybe $800 - $1000 a year to simply buy the seasoned market watching skills of a half dozen gold monitoring newsletters. Looks a little pricey on the surface of it. But many people here routinely throw that kind of money away on quite risky puts and calls suitable only for professional traders - yet these same people willing to be adventurous on puts won't buy a couple of newsletters to take out some insurance on their buy and sell timing affecting tens of thousands of dollars? This order of priorities sees spending money on gold price advisor newsletters as 'profligate', but thinks of any loss from mis-timed market puts as merely 'the cost of doing business investing in the PM's? Nuts.
These advisors were warning not to put any new money into gold for the past two or three months already!
Using puts and calls instead of simply waiting for safe entry windows in the gold price action, probably means many of us who are not professional traders are simply thrashing around spending several thousand dollars a year on such strategies, with uncertain results. Bottom line: If you have even $20K invested in the gold market, pay up some money for a little professional guidance as to when gold is overbought or oversold! You wouldn't think of owning a home without fire insurance - why consider having a big chunk of your savings in a volatile asset without taking out a little insurance at least on buy timing decisions?
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