Goldtent TA Paradise

Thank You New Regular Posters

1. Spock says:

   June 21, 2015 - 1:42 am at 1:42 am

   FGC, here is my own background in the metals and mining sector:

   Was the SEO for an investment bank, operating in the mining and resource sectors; and established their business operations overseas. Worked as a consultant and stock broker authorized representative providing corporate advisory, corporate public relations and capital raising services within the resource and mining sectors. Conducted due diligence and mine site visits for mining and resource projects in West Africa and Indonesia; with a focus on bulk commodities (coal and iron ore) and metals (copper and gold).

   Not a gold bug. Trading philosophy is extra-day trading, not intra-day. Although if there is a high probability intra-day trade, will often take it. For example, Mark’s recent JDST trade…took that one. Generally stick with the large liquid ETFs, rather than individual companies, as there is just too much risk with one company. One bad earnings report and the drawdown can be soul destroying. The ETFs spread the risk amongst many companies in the sector, so a few bad apples do not spoil the whole basket.

   What I think about where we are now with gold price is irrelevant. Its not what I think, or any of us think; its what the market thinks. We are but fleas on an elephant and merely go along for the ride. The key is to understand in which direction the elephant wants to go. We may not agree with what the elephant is doing, but that does not matter, as we have no influence, and neither does our opinion have any influence.

   So far this year I am in the black. All sectors are of interest. Do not care what it is, provided there is a trend, will jump on board. And that is the main problem right now…trying to find a decent trend that runs for more than a few days is like finding a needle in a haystack.

   I the past I used to trade for $ but now trading is a hobby. That seems to work in my favor, as trading decisions can be made unemotionally as $ are not the focus. the focus is seeing the trade work out.

   The big lesson is look at and understand what the market is thinking and doing. That’s all that matters. Your opinion means nothing.

2. Tim says:

   June 22, 2015 - 11:31 am at 11:31 am

   I have really have very little background relevant to trading. I started out only recently, back in Oct 2014 as a fresh convert to the KWN/goldbug cult. That lasted for about a month or two as my position steadily lost money and never recovered until I sold out my CEF bullion fund shares in early January, in the gold rally. I saw a chart by Rambus on an article feed on the Kitco site that showed the long term trend was down. It was a painful revelation but Rambus’ “opinion” was a straightforward interpretation of the gold price chart and it was pretty obvious the goldbug point of view was based on something else that had nothing to do with the actual gold market.

   I’ve been a stay at home dad for the last 16 years, so I don’t have any real qualifications. I did study Geography back in University (mid-80s) and spent a lot of time learning to interpret graphical data, which I think actually has helped with technical analysis. I try to read up on TA so I don’t learn about it the hard way anymore. Anyone following my postings should remember I’m new to this and not take them too seriously as they might with the more experience TAs.

   I think the gold market is headed for the plunge, as many here are expecting. But I find oil and gas much easier to get a grip on, trading-wise.

   My approach to trading is multi-day holding, 3x leveraged ETF trades that revolve around some sort of predictable cycle like a weekly trading range. But that sort of thing may be hard to find, so I’m trying to figure out how to use indicators and trendlines to trade in less cyclical markets, like the one natural gas is in right now, and oil seems to be entering into (unfortunately).

   “5….How are you doing , trading these wild markets.” Better than I started out… but I am still in the red. I think everyone loses money when they first start trading; I’ve read that in many places. Whether you decide to give it up and put your money (what’s left of it) back into a mutual fund or whether you decide to keep at it and learn how to trade successfully like many others have, is a decision point I’ve passed. I lost half my portfolio (on paper) but I’ve made back 2/3 of that in the last month or two. Half of that recovery has come from short term trades rather than just holding on to my losing position and waiting for the price to recover. I’m actually gaining some confidence in making money by trading, but there’s been some real gut wrenching moments where I regretted ever starting out and wished I’d just left it to my mutual fund company.

   From that you can probably guess that trading is not my main source of income… but if I can keep making consistent gains it really could become one because a growing portfolio can achieve the same gains with smaller rates of return.

   Lessons I’ve learned… The biggest one is that trading is a sport, not a science, or art, or job, or profession or other kind of work that you’ve come across before. Like soccer, there’s equipment, skills and rules, but putting it all together and scoring goals takes practice and experience and it’s a confusing thing at first. Pay attention to people who play the game better than you do and try to adapt their methods into something that works for you. For me it’s trendlines and indicators and using them to spot recurring patterns or just the next (likely) daily movement in price.

   The other lesson, related to the first, is that you have to focus on what works for you and what makes sense to you. There’s more than one way to make money in trading, and that’s because not all traders think the same way or see the same opportunities in the same market. Your own personality and outlook are part of the equation. Stick with what looks easiest. Of course, I thought spotting the bottom in the crude oil market in February and just holding on to it was easy, at the time…

   Passing on bad trades is just as important as taking the good ones. Zero is a positive number; getting back to that, in fact, will be my first major milestone.

   I think I’ve learned more from Eagle’s annotated charts and short comments than I have from anything else, and that includes a lot of books. Eagle really knows how to put it all together (trendlines, indicators, moving averages) and make it work, and like I said with the sport analogy, that’s what making money at trading really comes down to: being in a position to spot and take advantage of an opportunity before it’s gone.

3. Fullgoldcrown says:

   June 22, 2015 - 2:49 pm at 2:49 pm

   Excellent recap Tim

   I am very surprised that you have learned so much TA in such a short time

   Well done

   Also very surprised you gave up the Permabull Gold View so early on

   KWN et al did not take your soul

   Good for you

   As you probably guessed they are a cult and they have ruined many lives .