Note: Current US Gold Price: US$898 - Current AU Gold Price: AU$1370
Yesterday was a big day for gold for me. Please note I'm Australian and deal with Australian dollars but what schiff, rogers and celente are preaching is seeming to work much better for me than you americans because your government is involved in all this manipulation and intervention. Also our dollar isn't the world reserve currency.
As you guys know I invested approxiatemely half a million in Gold in early December. I did several purchases over a few different prices but all were between 1100 and 1200 and my spreadsheet is telling me I'm up 15 percent.
Because I know have some leeway; around 75k I thought I'd enter forex. I've been listening to Jim Rogers talk about the pound and also the yen. I think he's right on the money. I also think Gold is moving into a new phase as well as silver. I've heard many people talk about Gold going down to 500 dollars an ounce so on and so forth but even mainstream predictions are now well above 900 for this year some like citigroup even touching 2000. I think people aren't taking into account all the printing of money going on and the desctruction of currencies. Anyway this is where i'm going
I'm going to start small in forex this week and just play. Short the pound with 500 dollars 1:10 leverage, buy long on the yen with 500 dollars 1:10 leverage, buy silver long 2 grand with 500 leverage and buy gold long 500 with 1:10 leverage. Now if this goes well I'm going to add the same everday to my position hoping to catch these investments on the uptrend and obviously for the pound the downtrend.
Now I'll put my personal stoploss at the price I bought them so if it goes below I'll sell my positions. But if I do catch it on the uptrend I will constantly be adding to it and adding to my leverage. But more importantly I'll be increasing my stoploss.
So Gold right now is AU$1370 say it ends up the week up at 1440 (hypothetically) say i'm controlling 20,000 with my leverage I might push my stop-loss up to AU$1390. So then if next week if it drops back down to 1370 I will sell at 1380 with hardly any loss and wait till it comes back up to 1380 and then purchase the same positions.
This may take a while but I'm waiting for the uptrend the point in which gold moves up from and price and isn't coming back. Using this method (I simply thought of it in a dream) and guarentee my calculating my stop-loss that I don't ever lose that much money and if gold goes under a thousand I couldn't care less because my stop-loss would have got me out way early. But if gold really starts to make a move up which I am predicting will become extremely steep around Feb, March, April based on Celente's figures I will make a lot of money. I can follow this philosophy in silver and the pound. I'm not going to with the yen because I think the Japanese they will devalue it soon.
Obviously this all depends on me catching the uptrend when I make my first position if not I sell straight away. Is it going to cost a bit in fees? Yes but I'm 75K in the green and I plan to use a bit of that to leverage. I really would like to be controlling 2 million dollars in gold with leverage. Do note that if gold prices drop back down to 1200 I will sell to make sure that no matter what happens I end up in the green.
I'll be constantly updating you guys how I go. It looks I'll be using oanda.com - but I'm still doing some research before I set up my account tonight.
wish me all the best
your fellow liberty friend
Matt
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