Thursday, October 26, 2006

Gold Overtures at a Breakout

I am long Dec CBOT Gold, which I entered yesterday as a little swing trade inside this channel/triangle/consolidation zone thingy it's in. The thing with these trades is whether to take the profit at resistance (should it be kind enough to get to the line I have penciled in), or to watch and see if it breaks out. As I type this I'm watching volume kick up as price ticks over $600.

Potentially, I'll leave profit on the table in exchange for a chance at hitting one over the fence.

Hogs and Cattle are looking bullish too. No position, but wishing I was long and I'm looking for a lower risk long entry.

Kick Off

So what do you do for the inaugural post for a financial blog when the likelyhood of someone reading it in the next few weeks is almost zero? Tell people about myself, about how I trade etc.? Eewww, how boring!

Maybe about the markets I trade? A lecture on the value of stop losses, money management, technical analysis? As if you all haven't been beaten over the head ad infinitum with all that already!

How about a psychological analysis of why traders feel compelled to tell the world about their trades? Well I don't have a clue why I'm doing this.

How about a Chicago wheat chart? Yeah that will do, because it shows what every trader is trying to catch when pouring overtheir charts... and this was a particularly nice one. The question at the moment is this: Is it all over! Should we take our chips and go and have a festive evening with friends and a bottle of Dom? Or should we keep the chips on the table and let it ride?

The traders dilema epitomized!