NoiseTrader's "Let Profits Run" Series: Managing GOLD (GLD) Stocks

Discussion in 'Commodity Futures' started by NoiseTrader, Apr 3, 2006.

  1. Managing a longer term position (maximizing profits) is one of the most difficult challenges for any trader and a skill I'm constantly trying to get better at. In this series of threads I’m going to document some of the thought processes involved in trying to let profits run in a long GLD (GOLD ETF) position.

    The initial entry was near the close on 3/23. I took the 2nd partial profit at the top of the trading range, not knowing if it would exit the range or not.

    Now comes the difficult part....

    Price has not spent much time above the Feb highs so price can easily retrace back into the trading range. I am still working a loose stop above my original entry just under 55.

    A loose stop to me is outside of the control of liquidity -- I anticipate getting out way before that price would actually get hit, but its a fail-safe stop nevertheless.

    I expect a rotation back toward 57 to attract new bids because Gold was so tight moving up. If a bottom develops around 57, that would then provide a price level to pull the stop up against. In fact, it may be a trade location for an new add, because as a meaningful risk (stop point) develops, small risk tends to attract large size.

    The difficult part is if 57 does not hold as expected, then the position is exposed to a deeper retracement as far back as 55 and that in itself does not necessarily undermine the bullish price structure.

    To be continued...
  2. AK100



    To me it looks like you're wanting to trade long term but worrying too much about what happens to the short term picture.

    Why not do this -

    Move your stop to $45

    Look at the chart only once a month & try not to look at the gold price.

    Sell 25%-50% of your position at $110

    Let the rest of it ride until the public ALL want gold (might not happen though)

    And if all that takes 3-6 years then so be it. Remember there are a lot of gold investors who are following strategies similar to above that couldn't care less what their stocks do over the next month or so.

    Good luck anyway:D
  3. hello NT

    is there any connection between you and a new sponsor on ET called NOISE TRADER?

  4. One and the same