Building Negative Equity One Trade At A Time
Every day you don’t lose money trading, makes you 3 days closer to the wealth and financial freedom you desire.
We need time and volatility to make money trading; when we don’t get either or both, we walk. END. OF. STORY. PERIOD.
How many times have I seen the “trader face palm”? How many stars are there in the night sky? Yea, that many.
For the first 16 hours of trading today there was nothing but drifting dealer stop hunting: then came 45 minutes of “fun”, that I am sure created tax loss opportunities amongst the trading community.
XAUUSD
Are You Guys Hiring?
It’s days like this that always makes me think of what it would be like to be the sword-eater at the circus.
We came into the day in “buy mode” and for all of Asia and 90% of the European trade; the market had a whopping $11 / oz range. Up, down, back up, back down, new lows by a few ticks, up to the highs, you get the idea.
We got long on a buy signal and then got out with a few pennies / oz. when it turned around and started dropping. Lack of upside momentum was the key for me in getting out. As I say in my post today, in a low volatility environment, the slowest traders get eaten first.
Thanks to Weimar Ben Bernanke, gold went nuts when his prepared remarks before Congress were released. Elevator up turns into elevator down after the last retail trader finally gets long at the top.
Tomorrow is NFP Friday, so don’t expect much in the way of action until 7:30 AM Chicago time. We could get some position squaring that will extend the ranges.
I am definitely missing my buddy Ka-Chingggggg.
AUDUSD
Paste what I said about gold “here”: only it was even more boring and uneventful. No sense boring you to death, but the thing to note was that when gold made its run, AUD did almost nothing. Trading off that perceived positive correlation to gold are you? How’d that turn out for ya?
Have a good day everyone!
-vegas
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