I Take It None Of You Others Are On This GOLD Ride
Q: An amateur trader said that today, concerning one of the grain markets, and those two words caused one of my professional customers to go short the instant he read them. We were talking on the phone about the market and he was reading at the same time and I heard him say "toot, toot?". Then he said "I have an order for you right now, sell it and get short." And, he is getting short knowing full well that there is an important grain report tomorrow.
A:
I believe I mentioned before that when I trade this type of thing I prefer
silver as it's more of the professional's market. Gold is filled with little
one lot traders, and analyzing and predicting the behavior of the general
population is notoriously difficult. Who could have known that people would
actually pay good money for 'pet rocks'.
Also, I trade silver, I do not "invest" in it. A month? The only time I held a
silver position for that length of time was the '93 spring and summer rally.
Other markets are better suited for long term trading.
Also, for anyone who is investing in metals stocks, I would warn that metals
rallies have a bad habit of falling apart precipitously. I don't have the gold
numbers in my head, but it acted equivalently to silver (the normal ratio is 2
silver cents to 1 gold dollar), in 1993 silver fell 70 cents in two days, and
in 1987 it fell 2 dollars an ounce in about 30 seconds with three trades on the
way down.
Two examples of why commodities trading is very risky stuff and is not suitable
for a lot of people. Including trading stocks which derive some of their price
from an underlying commodity.
And we thought that genius guy was insane! Now it's October, when
Robellen's first pump was really late November. Again, he can't keep his
lies straight. And as a matter of fact, I have been trading gold a
couple months now. If you check google, I even played HL before
Babblebot "invented" it , and I've had NEM since Kevin dropped it from
his MIS Chalenge. Only I don't go around preaching the worship of the
Golden Calf as our one hit wonder does. It's one of 12 stocks I own,
four of which are oil and gas. But you don't see me going around
screaming "I have gas!" "I have gas" "I had gas first".