Saturday 2 August 2014
If anything could have gone right for July, it did not. Our timing was off
by about a day, but being close only counts in horseshoes. It was both the
PMs and crude oil that resulted in the losses.
In one instance, the recommendation to buy crude oil was during an oversold
condition. That oversold condition became more oversold for one more day,
triggering the stop, and then rallying 300 tics. The read was good, but the
market had one more day before turning around.
The recommendation to buy gold and silver was the night before $3.7 billion
worth of gold was dumped on the opening. There is no way to protect against
The use of stops is important, and we endeavor to limit risks to $1,000 or less
per trade recommendation, but even with that, several losing trades adds up.
July was one of those months that is the bane of all professional traders when
nothing seems to work. All one can do is to keep doing what looks to be the
right thing, and getting back on track will follow.