I think both old and silver have to pass for a huge correction before shooting up to the sky for the final race. I can see gold at 1000$ again; if it gets there it would be a perfect occasion to reaccumulate and even forget about money management rules for one time. Let's see what happens!
XAU/USD & XAG/USD - Gold & Silver Traders Thread
- #2,503
- Edited 4:07pm Jan 4, 2011 3:49pm | Edited 4:07pm
- | Joined Aug 2007 | Status: Trader | 2,219 Posts
- #2,507
- Jan 5, 2011 3:26am Jan 5, 2011 3:26am
First, let me take a last deep breath 
Good news: I managed to close the trade with profit. TP was hit during my sleep @1383
Bad news: not even those green $200 were able to cheer me up. It was scary. I even added more longs at @1377 and got very close to a margin call (if it reached 1372). Luckily the US market was closing and Asia brought the small rebound I needed.
Now I am rethinking the risk management... The first resolution has been taken, from now on the positions will be cut by half.
I work solely with cost averaging. No indicator, no charts. The further it moves, the more I add positions. As soon as it gets green, I scalp. I have tested it on the H1 timeframe with historical data from the last two years and it works fine. I have two accounts with the same strategy, one on H1 (the stable version) and another on M5 (the beta version, tested for 2.5 months and working profitably for the last 5 weeks).
My position size depends on the market. Usually I start with 2 ounces of gold, that's a quite tiny amount. Yesterday it grew to 1,000 ounces (!) due to the ridiculous price action. Until yesterday it had never crossed 250 ounces, which amounts to 6% of my account. I still have opened positions at H1, they are in a pretty comfortable situation. The problem was only on M5. I need more historical data in order to test it!!!
It may have been a small move on bigger TFs, but not at M5! C'mon, it came down straight from 1424 to 1376 without the smallest retracement. There was no green candle bigger than $3 during this movement, and that's just ridiculous. Even though my risk management must be tighted, I cannot blame myself totally for this situation. Statistically speaking, that price action was illogical and insane. The tiny retracement came much too late. I was not waiting for a 38% Fibonnacci, that would be too much. I just needed a 10% retracement, not more - still it came very late, almost too late.
By the way: if I seem to be irritated, nevermind. I am irritated due to what happened, it has nothing to do with your post. I hope you understand
Good news: I managed to close the trade with profit. TP was hit during my sleep @1383
Bad news: not even those green $200 were able to cheer me up. It was scary. I even added more longs at @1377 and got very close to a margin call (if it reached 1372). Luckily the US market was closing and Asia brought the small rebound I needed.
Now I am rethinking the risk management... The first resolution has been taken, from now on the positions will be cut by half.
How do you trade (percentage wise), to be so squeezed on such a small market move? You must be using too much leverage.
My position size depends on the market. Usually I start with 2 ounces of gold, that's a quite tiny amount. Yesterday it grew to 1,000 ounces (!) due to the ridiculous price action. Until yesterday it had never crossed 250 ounces, which amounts to 6% of my account. I still have opened positions at H1, they are in a pretty comfortable situation. The problem was only on M5. I need more historical data in order to test it!!!
It may have been a small move on bigger TFs, but not at M5! C'mon, it came down straight from 1424 to 1376 without the smallest retracement. There was no green candle bigger than $3 during this movement, and that's just ridiculous. Even though my risk management must be tighted, I cannot blame myself totally for this situation. Statistically speaking, that price action was illogical and insane. The tiny retracement came much too late. I was not waiting for a 38% Fibonnacci, that would be too much. I just needed a 10% retracement, not more - still it came very late, almost too late.
By the way: if I seem to be irritated, nevermind. I am irritated due to what happened, it has nothing to do with your post. I hope you understand
"The reason I was born and came into the world is to testify to the truth."
- #2,508
- Jan 5, 2011 4:08am Jan 5, 2011 4:08am
How could I have missed it? There was an indicator yesterday: the solar eclipse in Europe! Of course something extraordinary should happen!
Woe to me, hard at the heart, who doesn't believe in technical indicators!
Woe to me, hard at the heart, who doesn't believe in technical indicators!
"The reason I was born and came into the world is to testify to the truth."
- #2,510
- Jan 5, 2011 9:01am Jan 5, 2011 9:01am
- | Joined Feb 2010 | Status: Make Them Pay | 1,103 Posts
Anything can happen.
- #2,515
- Edited 9:48pm Jan 5, 2011 8:49pm | Edited 9:48pm
- | Joined Aug 2007 | Status: Trader | 2,219 Posts
- #2,516
- Jan 6, 2011 9:38am Jan 6, 2011 9:38am
- Joined Aug 2009 | Status: Patience = Simplest of all skills | 7,152 Posts
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
- #2,517
- Jan 6, 2011 9:40am Jan 6, 2011 9:40am
- Joined Aug 2009 | Status: Patience = Simplest of all skills | 7,152 Posts
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
- #2,520
- Jan 7, 2011 8:32am Jan 7, 2011 8:32am
- Joined Aug 2009 | Status: Patience = Simplest of all skills | 7,152 Posts
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News