Pages

Friday, December 27, 2013

Gold trade closed

Open position closed at 1214.80

Stoploss change to Gold position

Open position stoploss changed to 1214.80

Gold trade opened

SELL position opened at 1210.28

Gold trade opened

SELL position opened at 1209.13

Gold trade opened

SELL position opened at 1208.74

Gold trade opened

SELL position opened at 1209.42

Stoploss change to Gold position

Open position stoploss changed to 1215.48

Gold trade opened

SELL position opened at 1209.50

Gold trade opened

SELL position opened at 1209.50

Wednesday, December 11, 2013

Gold trading update 11 December 2013

Hi Everyone

Hopefully the gold price has settled into an upward trend again and we can get back to some more profitable trades.

For me the up-trend was confirmed when the Gold price breached the $1255 resistance level and the technical indicators are lining up for the next long trade to be entered at around the $1263 level. Place your stop-loses at around $1253 and take profit above $1275.

All the best and good luck

Chris

Tuesday, December 10, 2013

Gold trading update - 12 December 2013

Hi Everyone

Please note that the long term trend has turned up, so please do not enter into the short trade as earlier advised.

The confirmation of the trend reversal will be if the Gold price drops below $1235.28, should the price then rise through the trading session high you should enter into a long trade.

All the best
Chris

Gold trading update - 12 December 2013

Hi Everyone

Herewith my trading update on gold.

The charts have been lining up for a short trade. I would look to enter at the $1235 level with a stoploss placed at $1243 and take profit below $1227.

All the best and good luck
Chris

Wednesday, December 4, 2013

Monday, December 2, 2013

Daily gold trading update 2 December 2013

Hi everyone

Last night I expressed my hope for a good start to the December trading month, well it could not have started any better.

Entered the short trade at $1249.11 and took profit at $1231.17!

The strategy for the next 24 hours is to wait for a reset and then trade the next down swing. We however also have to keep an eye on the trend reversal signal that is currently at around $1252. Should this level be breached it will indicate that the market on gold have turned bullish.

Have a great day
Chris

Stoploss change to Gold position

Open position stoploss changed to 1249.11

Stoploss change to Gold position

Open position stoploss changed to 1252.99

Gold trade opened

SELL position opened at 1237.89

Gold trade opened

SELL position opened at 1242.12

Gold trade opened

SELL position opened at 1242.74

Gold trade opened

SELL position opened at 1244.24

Stoploss change to Gold position

Open position stoploss changed to 1254.87

Sunday, December 1, 2013

Gold trading update 1 December 2013

Hi everyone

The start of a new month.

The current trade is aiming for another short trade with a reversal possible in the next couple of days. For now however it is short with the trigger around $1241 on the 4H timeframe.

The level of the short trade will however rise to around the $1245 level during the AM, keep an eye out for the email alerts though.

Let hope for great start to the month as trading will get thin in the second half of the month.

All the be$t
Chris

Saturday, November 30, 2013

Risk management and the number of lots to trade.

Risk management is a very important aspect of your trading strategy. Even if you have the best technical or fundamental strategy, poor risk management will wipe out your investments very quickly. What makes this even more frustrating is that you might be able to trade very successfully for a while just to have your hard won gains wiped out in one or a couple of trades.

Managing a  consistently growing portfolio is about a lot of patience and the basics:

  • Your profit trade % must be above 50%. 
    • Obviously the higher above 50% the more your growth. 
    • You should however not be too greedy. I always aim for a profit % of around 60%
  • Your average profit should be higher than your average losses.
    • A good standard to look at here should be that your average profit should be 80% higher than your average losses.
Now we get to the most common trading error and that is to increase your number of lots traded to aggressively. It is very tempting to increase the lots when you are in a long consecutive trading run - it appears so easy and my strategy must be working so why not speed up things a bit. Believe me I have been there, this is a sure way to disaster.

Plan when you will increase the number of lots traded and stick to this plan no matter what.

In my opinion there is a number of fundamentals that you can base your lots strategy on:
  • Total investment portfolio value
    • Example - Increase your trades with 0.1 lots for every $1000 in your total portfolio.
    • This could become problematic as you increase your portfolio growth and when you take a couple of losses you have to decrease your lots again. Personally I have found this strategy very frustrating as you seem to hover between the current and next lot quantity forever. This will be especially true when you are starting out and the number of lots traded are quite small.
  • Total investment made
    • Example - Trade 0.1 lot for every $1000 dollars invested in your portfolio.
      • The benefit of this strategy is that you will manage your risk very well and will over a shorter time get your investments back.
      • On the negative side you will depend on consistent investments to grow the lots traded and therefor miss out on all the benefits that compounding will bring. 
      • This strategy can be followed if you have a limited investment that you will make over a limited time and if you have a conservative approach.
  • Time
    • Example - Increase your lots trade annually  with half  the percentage of the profit made in the last 12 months. If you made profit of 50% in the last 12 months, then increase your lots traded with 25%.
      • This approach will require patience, but will give you the benefits of compounding over time while managing your risk

The best approach that I have found is to combine the "Total investments made" and "Time" strategies discussed above. When you start out, start small and follow these strategies in a very disciplined way. If you do you will achieve your goals but it will take 10 years even if you start small. 

Remember consistency and discipline is the only way to ensure long-term success - Compounding will take care of the rest.

All the best
Chris  

November 2013 wrap-up.

Hi Everyone

November proved to be a very successful trading month, herewith the summary.

Instrument traded - Gold (4 Hour signals)
Number of trades - 10
Profit trade % - 70%
Profit factor  - 4.06%
Maximal drawdown - 7.58%








The strategy for December can prove to be more tricky, I do however believe to maintain a very consistent trading strategy despite the month of the year or any market conditions as this is the only way to achieve a non-emotional statistically consistent outcome. I therefor expect December to be a flat month with average profits and losses to be much smaller when compared to November.

All the best
Chris







Friday, November 29, 2013

Gold trading update 29 November 2013

Hi Everyone

Who would have believed it but it seems there is still one trade left in November - Go short below $1240 with a tight stoploss at around  $1246 and take profit at $1234.

Remember to close all positions tonight before the market closes.

Good luck
Chris

Wednesday, November 27, 2013

Gold trading update 27 November 2013

Hi everyone

The mentioned last trade for November was triggered earlier today and is still open in the market. Lets see what happens - hopefully it will be profitable ending a great November with a profit for the month around 30%

All the best
Chris

Gold trade opened

SELL position opened at 1240.36

Gold trade opened

SELL position opened at 1238.26

Gold trade opened

SELL position opened at 1243.98

Gold trade opened

SELL position opened at 1242.51

Gold trade opened

SELL position opened at 1242.51

Tuesday, November 26, 2013

Gold trading update 26 Movember 2013

Hi Everyone

Two good trading days, now we will have to see if there is still one short trade in the month. I will suggest that you wait for gold to breach $1250 and then we will trade the pullback - possibly on Thursday.

I will update again tomorrow.

All the best
Chris

Gold trade closed

Open position closed at 1243.03

Gold trade opened

SELL position opened at 1245.52

Gold trade opened

SELL position opened at 1246.25

Gold trade opened

SELL position opened at 1250.65

Gold trade opened

SELL position opened at 1250.53