I need Gold to get to under 903.9 before I can start thinking about buying it, I staying short. Been buying Silver, some makes first targets and others hit stops, always hedged eventually on entries.
I keep hearing people say that the magic number is $1050, which seems strange . . . support is probably a little lower than $1000. A genuine bounce happens at $950, that's my guess.
I closed out my positions this morning . . . I hate shorting and options so better to leave the casino before I get drunk and give it all back. Now watch it go down to $90. Jamba Juice looks good here.
Can't trade this thing anymore. I'm not the worlds best trader but I'm smart enough to make a connection between knowing what instruments consistently cost me money. I feel that GC requires stellar entries or huge stops just to make any kind of consistent profit and I'm just not into that as a trading vehicle.
For example, you decide to go short one near-month NYMEX Gold Futures contract at the price of USD 851.00/oz. Since each Gold futures contract represents 100 troy ounces of gold, the value of the contract is USD 85,100. To enter the short futures position, you have to put up an initial margin of USD 4,302. A week later, the price of gold falls and correspondingly, the price of NYMEX Gold futures drops to USD 765.90 per troy ounce. Each contract is now worth only USD 76,590. So by closing out your futures position now, you can exit your short position in Gold Futures with a profit of USD 8,510. Quite clear.
Either/or. The issue I find for me atleast is its difficult to get a trade on without getting shaken out multiple times. I find that GC is a market that takes advantage of smaller traders on a consistent basis more often than not. There's some improvements I can make for sure but I find my read of this thing right now is not the best. It also doesn't help that my recent trades have mostly been Euro session and I should know to just not bother with it. In short Id rather trade other instruments that have less observed toxicity.