Follow up on Gold II : Risk Management

When the bearish “Rounding Top” formation completed, we could do one of three things.

1.  Get out of the way and wait for a new bullish pattern to develop
2.  Liquidate a long position (Risk Management)
3.  Go short

I do not have a 4th option to check the status of OTC markets; or 5th option to check on what the “experts” have to say/predict.

Do you have a trade plan for what current developments are taking place in the auction right now?

The prior post discusses how I could intuitively see the current pattern before it completed.  I do not trade early in anticipation.  Preparation is for reacting at the execution stage with precision.  Preparation is for “peace of mind”, meaning zero doubts or worry about being wrong.  Intuition comes from experience.  Experience looking at price and volume, and not some bogus/gimmick “technical indicator”.   The link to that prior post can be found here:  http://scottpluschau.blogspot.com/2012/06/follow-up-chart-on-gold-trade.html

 

Consulting? ScottPluschau@gmail.com

 

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