Friday, January 30, 2009


Gold appears to have decoupled from just about
every other market and is now trading on its own
strictly as a currency (the only REAL one!) and
as safe haven for your assets.
I am only trading using trendchannels, flags and
fibonaccis to grab profits on easily tradeable moves
each day. It is a far better use of my trading capital
to trade that way than to just buy contracts and
hang on for a long move. Gold has become just too
erratic and I hate having a profit made and then
losing it when gold reverses. If I take it while I have
it, even if I could have had more, I still have SOMETHING!
And I am building my account to be able to trade even
more contracts which increases my leverage.
Some of my profits will be used to acquire more
cash gold coins at Monex ON MARGIN to be able
to lock in a cheap price (compared to the future prices)
on more coins with less money. I will try to
pay them all off and take possession, but I 'may'
sell some of them and use that profit to pay off
the remaining margined coins. I do NOT try to
use margined Monex coins to trade for profit because
their bid/ask spread is too wide and doesn't allow
you to profit unless you catch an outrageous move in
gold in a very short time, and that just doesn't happen.
So selling some coins at a top and applying the profits
to the other coins remaining is about the only thing you
can do to make maximum use of your money and have
gold coins at the same time.
The gold market has COMPLETELY changed its
character this past week and we have to adapt to that.
Very soon now, gold is going to skyrocket $50 to $100
PER DAY with intra-day fluctuations of similar amounts.
The average person will not know how to trade it and
will more than likely get wiped out.
So, now is the time to just buy your cash gold and hang on
for the best.