This week it appears gold continues it’s sideways path. While this is boring, it does give us time to get ready.
Ready for what? Intelligent traders look for entry points offering a high reward for a low risk. (We should all do that more often in more of our lives!) In recent articles we’ve pointed out levels to watch in GLD (121 and 118/118.50 in GLD) and NUGT (14 and 11). For the higher of these prices, we’re looking for the security to rise above the level, at which point we’d start buying and put our stop below the level.
For the lower price, we look to buy if the security drops close to the price (within 10-15 cents), then buy if it rises back up.
If it drops down to the lower price and keeps going down, well… At that point you’d consider short-selling the security, assuming you know how and can do that, or just wait until it stops falling. At which point you’d start buying with a stop underneath to limit loss, if it starts dropping again.
All this is Trading 101. Subtitled, What We Do When There’s Something To Do.
The rest of trading, which is most of the time, is titled:
Patience. Patience… PATIENCE!!!