I am a scaredy cat who has been burnt recently trading the gold
stocks, so preservation of capital is almost as important to me as
the profits.
You are very right and clearly more experienced - I am learning
and fortunately or unfortunately I sold out of SDS @ $69.00 after
having bought it @ $64.00 when S&P was at 1300.
One of the reasons I like this site is there are savvy guys here
who speak intelligently and calmly like yourself.
Please keep us relative newbies abreast of when you entry new
trades and what stops you use as this can be very helpful. I
am in the hole way too much from getting burnt on gold stocks so I
am really hoping to make a couple of good trades with shorts during
this next bear leg. I would like to get in again at some
point when the market rallies so I can participate and make some
money.
yankee -- one thing I would say, is you have to be clear when
you go in, what your time-frame is and what losses you can
tolerate. I started scaling into precious metals about three
weeks ago which was way too soon! and I'm way down. But I
made the decision to give these positions very wide stops because I
know that with sentiment toward gold so totally negative, the
sector can't just keep falling, there will be no one left to
sell. Yesterday my DGP position was down 20%. And its a
moderate-size position - 1500 shares. But I knew I simply was
not selling it. In fact I added to SLW yesterday and bought
GDX.
I've learned from my mistake and hopefully will not enter a new
position so early next time. But selling is not
necessarily the answer if you believe the trend is still up and do
not really need the capital for other trades. I am a lot in
cash, so I figure it can sit in that position until it comes back,
which it will.
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Michael
Gross predicts Dow 5,000 September 6, 2002 (CNN/Money) The manager of ...
Posted by yankee19 on 5th of Sep 2008 at 09:09 am
I am a scaredy cat who has been burnt recently trading the gold stocks, so preservation of capital is almost as important to me as the profits.
You are very right and clearly more experienced - I am learning and fortunately or unfortunately I sold out of SDS @ $69.00 after having bought it @ $64.00 when S&P was at 1300.
One of the reasons I like this site is there are savvy guys here who speak intelligently and calmly like yourself.
Please keep us relative newbies abreast of when you entry new trades and what stops you use as this can be very helpful. I am in the hole way too much from getting burnt on gold stocks so I am really hoping to make a couple of good trades with shorts during this next bear leg. I would like to get in again at some point when the market rallies so I can participate and make some money.
yankee -- one thing I
Posted by Michael on 5th of Sep 2008 at 09:52 am
yankee -- one thing I would say, is you have to be clear when you go in, what your time-frame is and what losses you can tolerate. I started scaling into precious metals about three weeks ago which was way too soon! and I'm way down. But I made the decision to give these positions very wide stops because I know that with sentiment toward gold so totally negative, the sector can't just keep falling, there will be no one left to sell. Yesterday my DGP position was down 20%. And its a moderate-size position - 1500 shares. But I knew I simply was not selling it. In fact I added to SLW yesterday and bought GDX.
I've learned from my mistake and hopefully will not enter a new position so early next time. But selling is not necessarily the answer if you believe the trend is still up and do not really need the capital for other trades. I am a lot in cash, so I figure it can sit in that position until it comes back, which it will.