Welcome To Trading
A price debacle in gold today as all support from the 1600 –
1610 area got taken out in minutes. There were some buy signals from the
algorithm but I ignored all of them but the last one. I didn’t buy gold; instead
I used a currency proxy. Why? Because down here sub 1600 and down $40 on price,
if I am wrong and the dealers gap this stuff lower, they are going to take us
out back and shoot us on price.
And since we aren’t exactly valued clients anymore [adios US
amigos], what leverage do I have arguing for price adjustments from the
brokerage house? Yea, exactly: Zip. Zero. Zilch. Nada.
Most of the time, the gold dealers will give you your stop
price if it gaps through [unlike futures which definitely don’t because there
are no dealers only orders from others] your stop. But they don’t have to;
there aren’t any guarantees. And the very last thing I want is to get butchered
on a sell stop even though it is probably a low probability. It wasn’t low
enough for me today.
That and the fact that I can only imagine what the slippage
would have been from the dealer as things were flying all over the place.
Currency proxies don’t work 100% of the time of course, but
I noticed early on today that EURUSD and gold were correlating pretty strongly.
I made 3 trades today in EURUSD; 2 produced profits and one was a loss, netting
out a profit of a few dollars. Granted, it isn’t much, but if I had been
trading gold I don’t think I would have been profitable.
I have finalized an agreement with another brokerage house
for our new PAMM. I have some paperwork to do and some documents to send, and
the new PAMM should be ready by some time next week. I’m in the process of
writing a help file for you to make the transition as easy as possible; I’ll be
sending it to you when the new PAMM is ready to accept our business.
If you haven’t done so already, and you are a PAMM client,
please email me your PAMM investor account number and I will send you the help
file when appropriate.
I’m really excited about our new home; the pros definitely outnumber
the cons and most importantly slippage will become a thing of the past; that
means more money for all of us.
Have a good day everyone.
-vegas
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