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Thread: I'll be shorting the pound and leveraging gold early next week.

  1. #1

    I'll be shorting the pound and leveraging gold early next week.

    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
    Last edited by matthalifax; 01-24-2009 at 11:27 PM.



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  3. #2
    NVM.

    Best of luck.
    Last edited by constitutional; 01-24-2009 at 11:57 PM.

  4. #3
    How exactly do you short the pound? Isn't it just like shorting the dollar? You just buy gold right? I mean they're both fiat currencies.
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington

  5. #4
    instead of me explaining it to you go over to http://www.forextradingandeducation....ex_markets.htm

    probably the quickest explanation of how forex works and how selling currencies short and long works on forex.
    Last edited by matthalifax; 01-25-2009 at 12:04 AM.

  6. #5

  7. #6
    what about it? for me to make money the yen doesn't have to go up. It only has to go up in relation to the pound.

  8. #7
    Quote Originally Posted by matthalifax View Post
    what about it? for me to make money the yen doesn't have to go up. It only has to go up in relation to the pound.
    Oh. I was pointing out the volatility. Which is what you want.

  9. #8
    Quote Originally Posted by matthalifax View Post
    instead of me explaining it to you go over to http://www.forextradingandeducation....ex_markets.htm

    probably the quickest explanation of how forex works and how selling currencies short and long works on forex.
    Can the Forex be used to short the dollar?
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington



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  11. #9
    Be sure to note that Oanda only allows 30:1 leverage on Gold and silver.

  12. #10
    what if your stop loss doesn't sell and the price dives?

    what if your screen freezes?

    what if the power goes out or your server goes down?

    what if you want a life, a holiday, or just peace?

    I'd buy commodity stocks, mines and oil when it drops into the 20's.

  13. #11
    dude cmon it's forex i have like 6 computers my internet has never stopped working in my lifetime. Gold and silver will be high enough in feb, march i'm not going to even bother loooking man. I'll just be lying in money haha

  14. #12
    forex goes down on volume. stay off the peaks, which ironically is probably when you want to trade. I wouldn't unless I had Bernanke, Volker and the banksters in my pocket.

  15. #13
    look i have the vast majority in physical gold and silver and AU$ which is as safe as anything so to risk a small my percentage of my wealth leveraging up on the rise in gold and silver and the collapse of the USD is not a too bad idea if you ask me. Worse comes to worse i lose a very small percentage of my money.

  16. #14
    Quote Originally Posted by misericordia View Post
    forex goes down on volume. stay off the peaks, .
    How can you interpret "forex goes down on volume" with this graph ( the volume and momentum)


  17. #15
    Quote Originally Posted by Mordan View Post
    How can you interpret "forex goes down on volume" with this graph ( the volume and momentum)

    What the hell? Metatrader 4 has volume now?

  18. #16
    Quote Originally Posted by Jordan View Post
    What the hell? Metatrader 4 has volume now?
    well obviously. it is MT4. what is so shocking?



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  20. #17
    I'll be shorting a lot of gold related stocks this week.
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414

  21. #18
    why? you predicting a selloff in the market? you do realize the bad news that will be coming out? what method are you using to short it?

  22. #19
    Quote Originally Posted by matthalifax View Post
    why? you predicting a selloff in the market? you do realize the bad news that will be coming out? what method are you using to short it?
    yes because nothing goes up in a straight line then not crash.... usually.

  23. #20
    Lucky you...you can follow Peter's Gold advice and make a ton of money...here in America that's a completely different story right now. Being the reserve currency of the world, and the most dominant force in the World (financially), we play by different rules.
    Privatize the profits, socialize the losses. - Government at its best.

  24. #21
    don't worry your time is coming. If had got in earlier in gold here I would of been up thirty percent. Isn't it incredible that we never had the massive drop in gold like you guys did from 1000 to 800 we just kept hitting record highs. It shows you that gold is really strong but that the US dollar is way overvalued.

  25. #22
    why would you get into gold after this massive surge. it's at a 3 month high right now. be patient and wait for a pull back if you ask me.

  26. #23
    Quote Originally Posted by jyakulis View Post
    why would you get into gold after this massive surge. it's at a 3 month high right now. be patient and wait for a pull back if you ask me.
    It seems to be 'decoupliing' from the dollar according to some. Thats a flag for everyone thats ever pondered gold but may have resisted on the common wisdom that gold is not an investment.

    Gold is at a high but it looks set to rally for at least the next little while. If that lasts until the market bottom drops out as some other trends suggest in mid march you'll have waited too long. It seems not to have anywhere to go but up. Why wait?

  27. #24
    Quote Originally Posted by matthalifax View Post
    why? you predicting a selloff in the market? you do realize the bad news that will be coming out? what method are you using to short it?
    I really can't explain my trading methods in a few minutes or less. I'll be using stocks and etfs in NYSE. As you can see Gold is taking a hit already, today. I hope it holds. I'm already in position for my shorts (dialed in before the markets closed Friday).
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414



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  29. #25

    truthistreason

    you may lose money in about 2 and a half hours when the LSX opens. The britons are crazy for gold because their pound is being obliterated.

    If when the LSX opens gold stays in the red you should be okay. Good Luck. I'll be leveraging gold to go up in about 2 and half hours on forex

  30. #26
    Quote Originally Posted by matthalifax View Post
    you may lose money in about 2 and a half hours when the LSX opens. The britons are crazy for gold because their pound is being obliterated.

    If when the LSX opens gold stays in the red you should be okay. Good Luck. I'll be leveraging gold to go up in about 2 and half hours on forex
    Gold is creeping up right now in US dollars. I expect gold to dip (in US dollars) after the London opens for trading. I dont know what that means in aussie dollars though.

  31. #27
    Should be an interesting week.
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414

  32. #28
    Quote Originally Posted by matthalifax View Post
    you may lose money in about 2 and a half hours when the LSX opens. The britons are crazy for gold because their pound is being obliterated.

    If when the LSX opens gold stays in the red you should be okay. Good Luck. I'll be leveraging gold to go up in about 2 and half hours on forex
    Worked out!
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414



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