Gold Update/Anticipating and Hedging
Trader Scott’s Market Blog
October 30, 2016
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For the last few weeks I’ve been writing that gold should generally continue to bounce from the October 7th low of $1243 thru month end, but we have to be concerned about a secondary top into the beginning of November. So far, so good, and Friday there was pretty good ending action after the “news” about Clinton’s e-mails came out. So now gold is setting up some more important resistance areas for the strong hands to continue selling/weak hands buying into rallies for a bit. And I would expect some more rally attempts, but now the main focus should be on an outstanding entry point next month. This entry point will likely be a secondary bottom with retests of the low and also a major low on an investment basis. So now the support areas to be looking at will be around the October 7th low of $1243, but a much better opportunity, if it were to arise,would be below $1201. Gold currently needs to build potential energy on this rally to be able to push lower and break some support areas. I don’t ever “tell” a market what to do. I try to anticipate what it is likely to do, and then let it come to me. So now for INVESTORS, it is just a waiting game. And here is a longer term view of gold with the same boring old areas (entry points) drawn in.
As you can see this business is mostly about waiting, but always, always being prepared. Being prepared to act if/when our opportunities arise. And once we are in a trade or investment, it is solely about managing that position. Because we have zero, I repeat ZERO, control over the market once we’re in. All we have control over is when/where we get in and when/where we get out – profit or loss. These are some of the basic ways which I use to get proactive about being able to anticipate and to act, so as NOT to resort to reacting. And in regards to all of this, people often ask me to talk about hedging. I don’t like talking about it, because most people (including myself sometimes) end up with an even more convoluted and confusing position in the market when we (resort to) hedging. But the ways I talk about being prepared, being patient, only entering when our “best” opportunity arises, and learning how to take, at least, partial profits – these actions will basically negate any need to hedge. Do the things right, up front, and then you can ignore hedging. Andyou will be shocked at all of the good “luck” which comes your way also, as a result of focusing on taking all of the “right” actions up front.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.