I am sure every newbie investor would love to jump on the gold bandwagon when some guru would state gold is going to 2,000…5,000 or 10,000. These gurus have made calls and some have worked and some have not. The ones who foolishly bought into their calls have lost money. Losing money is one thing, the frustration is worse. When trend following ( which is never easy) I would much prefer to know why I am buying or selling something…gold included. I diminish my frustration to some point by having a plan with thought our rules that are understandable and rather simple to follow. BTW trend following does not have be complicated with zillions of trend following rules. The key for a successful trend follower is to have rules and a routine. Without this you have nothing…but frustration.
Do not get me wrong, it is easy to get frustrated also when you have 10 trades in a row that do not work. This is the reality. I have been there countless times and the only saving grace is I “try” to keep these loses small and allow myself to be available when there are moves….
I have been in both trades GC an GDX…Both are interesting….I have no idea if they will go to X thousand or X dollars…the key is to have a complete trend following plan…
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL.