Rm I know you are a good trader so i respect your calls, but I trade gdx slv gld and other commodity stocks all day long. I rarely take overnight positions but I was scratching my head yesterday on metals strength and followed my gut and went home short. I am getting a little annoyed with the comeback here and might cover and wait till later, the machines might try to gun 1400 in gold, not sure if I want to take that much pain. As usual the opening action in the gold stocks will be a good tell to overall direction here.
RM's occasional market calls...
- Thread starter Rearden Metal
- Start date
Now I'm long 37% more ZSL than I was last night. ZSL current price: $13.35.
Edit: Yeah, JD. After seeing bullion prices down so sharply last night, I too was hoping ZSL would open around $14. Then I'd have liquidated most of my position right on the open and counted my money with a smile. I'll just have to deal with whatever the market wants to give me...
Edit: Yeah, JD. After seeing bullion prices down so sharply last night, I too was hoping ZSL would open around $14. Then I'd have liquidated most of my position right on the open and counted my money with a smile. I'll just have to deal with whatever the market wants to give me...
Sold 5% of my position at $13.75. I have limit orders to scale out (slowly) in case the price keeps going my way.
Basically, I <i>am</i> holding out for better prices. I've only sold 17% of the position at various limit prices so far. Most of my size remains intact.
As for "nothing wrong with taking profits"... I think you know my mind doesn't work that way. The market doesn't know or care where I got in, so neither should I. My average entry price is in the neighborhood of ZSL $13.40 to $13.45. (I don't even know exactly- that's how little it matters). Now, what if my entry price was $12 instead, and I was sitting on huge gains? What if my entry price was $14.10 two days ago and I was still down on the position? Would any of that matter at all? Should my entry price influence where I want to be getting out? It really shouldn't! If my entry price has any bearing or influence on my exit price(s), that means I'm doing something wrong.
As for "nothing wrong with taking profits"... I think you know my mind doesn't work that way. The market doesn't know or care where I got in, so neither should I. My average entry price is in the neighborhood of ZSL $13.40 to $13.45. (I don't even know exactly- that's how little it matters). Now, what if my entry price was $12 instead, and I was sitting on huge gains? What if my entry price was $14.10 two days ago and I was still down on the position? Would any of that matter at all? Should my entry price influence where I want to be getting out? It really shouldn't! If my entry price has any bearing or influence on my exit price(s), that means I'm doing something wrong.
ZSL traded all the way up to $14.55 just now, which means that many of my limit orders to exit have just been filled, praise allah. I'm now out of 79% of the position.
Quote from gella:
Very beautiful and helpful masterclass realtime. Thank you, i really enjoyed following you on that one. Didn't actually take trade due to account issues, but it was really great to see how pros do it. Hope i will learn someday! And i will.
I'm now out of 100% of the position. ZSL current price: $14.48, so consider this trade closed and done.
Gella, I think you're cool. Glad you enjoyed the show, please drive safely.
Does that mean that you are equally flexible in letting price go against you whether the trade is in profit or under water? Although it may seem arbitrary, I think a lot of people, myself included, would provide a bit more leeway to adverse price action in an open profit situation than if the trade was venturing into loss territory. Something about capital preservation. Again, I suppose that to the people who don't subscribe to this view, the distinction may be arbitrary.