I have 2 positions on gold:
- Short term where I entered very close to stop
- Long term with a wider stop but not that wide
In the short term gold has really gone. I'll cut to the chase now I am trailing it with a $20 stop.
The price is going vertically, and often once it retraces it can retrace hard.
Maybe my $20 stop is too wide and I will give back profit.
I already have a long term hold so I don't need to tighten my grip on this.
"Last time"
The vertical price can see a major correction, but often this does not happen "instantly", here are some examples:
I am sure it can drop like a rock but usually, very often, it does not, so there is no reason to "panic" and be a profit snatcher.
And even if it does, in my personal case I bought $5 from the bottom (and posted to do so $6 away) at worst I'll give back 1/3 to 38% of my profit, not the end of the world.
When I'll buy more would be on another major pullback, I'll enter with a stop of maybe $50 and trail with $100, 50 being somewhere between the current (high) and past few years (low) weekly ATR.
Just going to be attentive and check on the price often!
- Short term where I entered very close to stop
- Long term with a wider stop but not that wide
In the short term gold has really gone. I'll cut to the chase now I am trailing it with a $20 stop.
The price is going vertically, and often once it retraces it can retrace hard.
Maybe my $20 stop is too wide and I will give back profit.
I already have a long term hold so I don't need to tighten my grip on this.
"Last time"
The vertical price can see a major correction, but often this does not happen "instantly", here are some examples:
I am sure it can drop like a rock but usually, very often, it does not, so there is no reason to "panic" and be a profit snatcher.
And even if it does, in my personal case I bought $5 from the bottom (and posted to do so $6 away) at worst I'll give back 1/3 to 38% of my profit, not the end of the world.
When I'll buy more would be on another major pullback, I'll enter with a stop of maybe $50 and trail with $100, 50 being somewhere between the current (high) and past few years (low) weekly ATR.
Just going to be attentive and check on the price often!
It often goes lower
Could also be a rising wedge