This is a multi year trade if done properly. It may take me a few tries to get the position on in the right spot. I'm looking to build a position and trade around it as much as possible. Of course I could also be wrong and we are still in for more of this bear market....
I liquidated Silver shorts mid Sept, originated April 2011, I remember it took like fifteen attempts to find the high. This is my 3rd try to find bottom, but have my Put options for hedge. Am still short Gold, not low enough, but near Friday's close I get to see whether to close out trade. I use Divergence on weekly, and fifteen minutes before last day of week is above prior weeks high, exit position. Are you hedging your trades? I believe they have Mini options. Wish you much luck.
I'm not hedging. I usually just trade super small to start and then lever up as the trade goes my way. That's why I have my rule where I can add only if the trade has moved $25 dollars in my direction. Keeps me from getting to big to fast. Also, I think gold could definitely still punch through the lows so I'm keeping a close eye on this entry. I do believe that it is quite bullish that we took back all the losses from Friday's jobs number on both metals. Also, like you I am actually more bullish silver than gold right here but for sake of the $2500 dollar challenge the only thing I can really trade are the micro gold contracts. Of course it helps that I have much more than 2500 to actually trade with so I can add to the account if needed.
Nothing going today. Just going to sit with my 1 lot into tomorrows fed minutes. Time to do things besides stare at screens.
Had some issues away from the market today. So I wasn't even around for the minutes but I see that they were quite dovish. Miners are acting extremely bullish and I think this is a major plus for gold. If I was trading a larger account I would more than likely be playing this more in the miners and silver than I am here. For now, because of the challenge, I'll stick with MGC. Staying long and thinking of bending my add rules, at +$21 instead of +$25, and putting on another long here. Not sure if I mentioned it in my OP but I can add up $25 but don't have too. A breach of that level gives me the option to add a position.
Did nothing again today. Still sitting on the 1 lot and up around $270. This 4 day run has been the longest winning streak for gold in 7 months! Yikes. Still waiting to add and I have no problem watching it run for a little bit before I do. I'd rather control risk early and get a little more aggressive with some confirmation. It's still possible we snap back down and make new lows.
Added position at $1222.50. Stop is still the same just made it for 2 contracts now not 1. Will be using somewhat of a mental stop on the add here and to much weakness today or monday and I might pull it off. Would be unlikely if I let both get stopped out below the low. Avg. of 1210 now.