As of 6:03 a.m this morning, I am sitting here listening to the jungle come to life. The sounds of insects buzzing, and birds chirping away – coupled with the occasional hoot/yip from my girlfriend – apparently quite thrilled with what she sees here on the computer screen. 600+ pips and 4% additional profit – is nothing to shake a stick at – and indeed does warrant some excitement.
Now… this provides a fairly substancial “pillow” if a trader was to consider “letting it ride” and let’s say….spend the day snorkling with the sea turtles… or perhaps a long hike out along the beach. Keeping in mind of course, that within minutes this entire “paper profit” could be cut in half or even completely erased/vanish considering the current volatility and market environment ( I read last night that perhaps because of Florida – the election results may not be completed/counted for several weeks should some “discrepancy” arise…..what?..are you kidding me?) leaving one feeling….lets just say “not so happy” about taking that chance.
Or….responsibly…one could choose to “move your stops” into profit and allow the trades to keep working – understanding that you may arrive home later with “less” than you see now – but all in all still a good trade.
Or lastly – one could choose to “BANK EVERY FREAKIN PENNY” – and go about his business with a much larger smile than the day before, an extra 4% in the bank , and every opportunity to “jump back in” knowing full well – the usual “zigs n zags” will always provide another shot.
Subsequently a new pack of street dogs has taken up residence across the street…..perhaps I’ll wander over and buy them breakfast.
6:37 Kong takes profits.
I always prefer the P in P&L…. Always…. They say the early bird gets the worm. I say the bird who know when to fly and when to walk gets to miss the worst of the storm. Enjoy your breakfast.
Thanks for the input / comment here Tim – I really do appreciate the support. And would suggest that for you , or anyone following – check the deeper trades in both gold and silver – as gold is up 35 bucks today alone.
In the simplest sense…..Obama = continued monetary policy = Ben keeps printing/killing the dollar = Gold to the moon!
Any questions on how to trade it further….let me know.
This always gives me a similar dilemma, being in New Zealand, as we miss out on the large COMEX moves while sleeping. I had to lighten up on last Fri’s drop (only core position now left) due to leverage, to preserve capital – could not afford another drop, even though late in daily & intermediate cycle & close to 200dma etc. Then waking up this morning, seeing gold up $40. Since I need to go to work, added to positions at ~$1720. While not “nice” to do so, specially having sold at 1679 before, that is history now, and can’t ignore the pattern either – extremely bullish (“morning star”). The “usual” pattern of the price action following such a big move goes something like this: as NZ / Aust trading starts, slight weakness occurs on original move due to profit taking (I have a trader mate who actually trades these moves, countering it, doing very well). Then Asia comes on board at noon – price action usually goes sideways / meaningless. 5-6pm NZ time, weakness sets in (as in: it falls below the consolidation during the last 8-10 hours), 6-7pm: Euro starts to kick in, can go suddenly lower as we had a whole sideways pattern for 10hours, until say 10-11-12pm: new buying starts. Of source is not always the case… but the regularity of the pattern is compelling. This time the $40 up move did not result in a BB violation, so maybe less of a pullback? So….. adding at $1720 – where does one put their stop? Well, has to be at the low point of ….. $1672.. That’s an enormous distance of nearly $50! So a decent size position results in a large risk % on. But if the pattern is very compelling – then why not? This goes back to the earlier posted question of: if the entry / stop distance is small, does one take a lower % risk of capital then if the distance is large? Yesterday, the intraday move just popping above 1685 did not mean it would go higher, and adding there would have been less compelling than seeing now the complete pattern confirmed.
I don’t sleep – period.Never have…and likely never will – been dealing with it since childhood, and have since found a perfect fit – trading Forex!
Commonly, I make breakfast around 2 a.m – eat lunch around the time the sun is coming up – and am usually in the gym and/or done for the day before noon. Its nuts I know…and likely not a schedule for a family man. I appreciate you as well have time zone issues – and I can help out with that, but will try to get through the rest of your questions now.
You need to do the math on your position size vs your stop – ie…..yes….if you can only afford to risk “x” – then you have a choice to make. Less shares….wider stop……or more shares “tighter stop”. Myself ..I go with the less shares wider stops when the market is so nutty/volatile…and just make what I make knowing Im not blowing my money management rules….and staying in the trade.
Yes…occasionally…Ill miss some upward movement with a “small lil trade” – but keep the peace of mind that I managed my risk. There is always another trade. ALWAYS!
Frankly…Im not sweating the specific price levels here with gold in that……my fundamental analysis is dictating this trade.Frankly…I have no idea if gold will dip to “1660/whatever” or rise to 2500 etc…..
What I do know however – is the more dollars you print – the more of them you need to buy an ounce of gold…..more dollars printed…more dollars needed to buy “real things” like gold so……..
On that basis alone….I can handle whatever price action comes in the coming days…and am more interested in the price of gold….come January.