-- Posted Sunday, 1 October 2006 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Monday, October 2, 2006
For investors who’d rather be smart than lucky
The chat room at Rick’s Picks continues to be a great place to hang out for anyone wanting to keep close tabs on bullion and precious-metal shares intraday, or to manage the risk in either. Consider the following snippet, reproduced almost exactly as it appeared on the Web site. (Note: All names have been changed for reasons of privacy.) The dialogue was posted to the chat room shortly after 11 a.m. Eastern. Gold was trading slightly north of $601, having fallen sharply from an opening that ranged as high as $607.50:
Now check out the chart:
An Australian in the room, trading at the bedtime end of his day, announced that he was filled at 599.60, using a stop-loss at 599.10 (!) -- so tight that an outside observer might have chastised him for breaking a conventional rule: “Give yourself some room!” But in this case, the microscopic, 50-cent stop-loss proved to be more than enough, since the actual low was just 10 cents (one tick) below where the Oz trader said he’d gotten in. He announced that he was raising his stop-loss to break-even when Gold started to move higher, and then he and another trader posted that they had exited intraday, presumably with a profit. A third trader said he had been short the December Gold futures but covered and went long three contracts at the very bottom. “I will tell everyone I know who trades,” he promised.
Some Caveats
Of course, these apparent successes offer no guarantee that things will go anywhere near as well for Rick’s Picks chat-room traders in the future. And no matter how accurate the forecasts, there will always be substantial risk connected with trading futures contracts and other vehicles under discussion, including stocks, options and indexes. To be sure, yesterday chat room action was exemplary, and it took an experienced hand to be able to grab the 599.60 Hidden Pivots and run with it. The three traders mentioned showed excellent risk-management skills, especially the one who used a very tight stop-loss that necessitated excellent skill at executing.
For participants in the chat-room, the lesson to take away from all of this was that money management skills are paramount in seeing a long-term trading program through. But even without the Hidden Pivot swing points, the chat room will remain an excellent venue for precious metal traders and investors who want to keep a very close watch on things. Drop by sometime and say “hi!” The room is open to all subscribers, even those who sign up for just a month.
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Free Hidden Pivot Calculator
The Hidden Pivot seminar next month in New York City is sold out, but there are still a few seats left in the three others that are planned: Vancouver (October 28-29); San Francisco (November 11-12); and Sydney, Australia (December 2-3). You can request a registration form and further details by clicking here. And, if you act now, there is still a chance to claim a free Hidden-Pivot calculator and one of our snazzy Rick’s Picks combed-cotton polo shirts in your choice of colors.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Sunday, 1 October 2006 | Digg This Article | Source: GoldSeek.com
