Yesterday, the spot gold market flashed a major trend change to the upside. Major trend changes do not occur that often and when they do I like to pay close attention to them. The signal came in at $1,331.45, and even though gold is now lower than that point, it is still a valid signal.
With all the Trade Triangles now positive and the fact that we are seeing a pullback today in gold (FOREX:XAUUSDO), this may be an ideal time to get long gold in the ETF SPDR Gold Shares (PACF:GLD), a leveraged ETF, or in futures.
The current pullback on the intraday 15-minute chart puts this market back into a Fibonacci support area which should offer good support. With the long Fourth of July weekend, I do not expect anybody will want to be short this market going in to the weekend. I expect to see some recovery later today from the lows seen this morning.
There are no guarantees in trading, but with all of the Trade Triangles positive on gold, I feel this is a fairly low risk trade on the upside. As always, you should protect your position with money management stops. If you'd like to learn more about money management stops, you can read about them here.
Chart Legend: Continue reading "Time To Buy Gold"
Stops are an important part of a trader's arsenal of trading tools. Some traders argue that stops are the most crucial part of their trading armor.
So here are three ways to use stops to protect your capital and lock in profits from a trade. These three money management techniques can be used in stock, futures and forex trading.
The important rule is that you do use a real stop in the marketplace. A friend of mine joked with me that he had never seen a "mental stop" filled electronically or in the pits.
Continue reading "How to use money management stops effectively"
Today I'd like everyone to welcome David Waring from InformedTrades.com to come and teach us a bit about the all important trailing stop loss method! It's always a top question among members and David makes it clear the best methods to use. Enjoy and feel free to comment!
In all my years one of the most frequent topic I discuss is the psychological difficulties people have with letting their profits run, and how the concept of the trailing stop is one way traders can overcome these difficulties that are the downfall of so many traders.
Once a position has begun to move in a traders favor many successful trader’s will manage that position through the use of what is known as a trailing stop. The simplest type of trailing stop is what is known as a fixed trailing stop which simply moves along behind a position as that position begins to move in the traders favor. The beauty of the fixed trailing stop, is that while it will move up behind a long position or down behind a short position as the position moves in the traders favor, if at any time the position begins to move against the trader, the stop does not move, essentially locking in a large portion of the gains the trader has made up to that point.
Continue reading "How to Lock in Profits with Trailing Stops"