We have enjoyed tremendous success the past few weeks as assets of all types are finally breaking out after weeks of consolidation. Stocks in particular have had a tremendous run for months now, but we are now seeing money flow into commodities. The rally with gold has been even stronger than I could have anticipated. The destination for gold has been the same but the speed by which we are getting there has been a lot faster than I projected.
I first learned about cycle trading from a guy named Gary Savage who runs a website called the Smart Money Tracker. Over half of what I know about cycle trading and human behavior around the markets came from him. That said, the biggest trading mistake by far I ever made I can attribute to him. I won't go into that now and I don't blame him as I accept responsibility for all my trades but the lessons I learned from him, either good or bad have made me a better trader today and this has helped me as I try to help my customers. This was Gary and I a few years ago.
Gary produced an excellent video today that I think is worth a few minutes watching. He masterfully explains the market psychology of a beginning trader and how beginner traders think. I see these things happening right now with some of my customers.
As a cycle trader, I am better at picking market bottoms than tops. I think gold is approaching a spot where we will want to exit our positions very soon. It is becoming time to manage our greed. The best time to exit a trade is when you believe you have made enough and that is different for every trader.
The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market. All trade recommendations are made in "The Pit". This is also a blog page where you can ask questions, post your thoughts, or ask for help. Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.