Believing Anything Can Happen When Trend Following Gold

By Andy Abraham of Trend Following Mentor

Consultant at Abraham Trading Consultants • Jun 17, 2016 at 5:07 PM EDT

Unfortunately, too many people trade their opinions. They might believe the word is ending and think they can just buy gold or short the stock market. Trading opinions is dangerous.

Unfortunately too many people trade their opinions. They might believe the word is ending and think they can just buy gold or short the stock market. Trading opinions is dangerous!

Believing anything can happen will protect your hard earned money. I want to share a trade that I am in. I usually do not look during the day at quotes. However I had a window open and noticed gold was up big time. As I have been long GDX, I thought it would be nice for GDX ( the gold miners ETF ) to move up.

However later at the close gold did not do so well. This morning gold is down further. I have learned over the long years that anything can and will happen…this is why I trade with a complete trading plan.

Question is- Do you have a trading plan??

GDX

gold

Disclosure:

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I may hold positions in these stocks mentioned in the blog.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.