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Monday, January 29, 2007

Gold, silver and Currencies

I am not an expert, seek advise from somewhere else.

I have learned two years ago that if you go into gold, silver, oil or currency trading - do not (trans: never, ever) trade on a very high leverage, and as much as possible do not trade on a very short term. Trade based on your targets.

The past two days, prices have been choppy. And in my earlier post I predicted Asean currencies to go up. And Gold and silver to go up. This predictions, of course are medium term, i.e., in a few months. Not on a daily basis when we know by experience, prices would be choppy and when you are fully exposed, that is, on a leverage of 1:50 and God forbid, 1:100 or 200. you are extremely vulnerable and could go bust in minutes! But if the directions, on a very short term basis, you predicted it right -it could be your ticket to wealth. But then, easy come , easy go. So be very careful.

Does other analysts still share my views?

Yup, todays price for gold is 640.40, and for silver, 13.12. Some analyst believed that it will rise to as high as 850 for Gold, and 15.20 for Silver by April 2007.

If you are buying this expectations, and if you trade 10:1 and hold until at least it meets the target halfway (720 for Gold, and 14.12 for Silver), you could pocket a "horrible" amount of money. Hehehe. Let us see what's going to happen by April, OK?

Who seez making money is complicated? Opps...please do not forget your stop loss hehehe.