Timing Timing Timing

Timing is everything. We've all heard of the phrase "being in the right place, at the right time" and it is specifically true to investing. Knowing when to get in, and when to get out is a lot more important than the actual price of an underlying commodity. As a speculator you should be interested in trading price movement, and not its relevance to what you think or perceive the price of a commodity will be. Ultimately, the markets sentiment decides what the price will be, and focusing on direction rather than actual prices will help in your success.

Nobody can pick a top or a bottom, and if they do, its shear luck. Most novices will enter a market too early, and exit too late. What does this tell us? Novices are too anxious to try and make a profit, and typically exit too late because they don't like to admit they're wrong. You have to get in the mindset, that there is no mind-SET. You have to be willing to switch your thinking and ideology as quick as the market changes direction.

A trading motto that I like to practice is "I'd rather be late to the party, than the one paying for it." It is prudent to wait for confirmation of a change in direction, or continuance of a trend before establishing or adding to a position. A retest of support or resistance, will provide you the best entry point, with the least possible risk just above/below the support or resistance.

As a beginner you most likely will not have the knowledge to utilize certain indicators to pinpoint support and resistance and for this very reason we provide technical analysis free to all of our clients. Research is updated daily and can be accessed via our web-based trading platform under the 'Quotes & Research' menu.

Feel free to contact any one of our qualified brokers for a tutorial of all the services we offer and how they may benefit you.

GOLD GOLD GOLD - The boom is over....

At least for the time being. The past week or so has left gold in a funnny place between 875-900, a break of that level would most likely lead to another break of about $20 in either direction. Our stimulus packages seem to slowly be working, as banks are borrowing near 0% and lending out around 4.5%, they are definitely making money once again. Once the banks deem that they are out of high water, they will slowly begin to trickle down the funds to consumer by untightening their loan requirements. This untightening will lead to a greater supply of money to be spent my consumers, and thus get the economy rolling in the right direction again. It seems as though the housing market is finding a bottom, as multiple offers on foreclosed and distressed properties is a positive sign that buyers are re-enetering the markets.

The flight to quality in bonds and gold seem to be diminishing, and more likely than not we should see the lower $800 level in gold within the next few weeks. A technical reversal seems to be in place, and any rally should be sold. The gold boom seems to be too commercialiized for my taste, with all these infomercials to send in your gold and receive top dollar. Who in the right mind would actually mail their gold away?

Until we get better reports on how well our stimulus packages have affected our economy, we shouldn't expect any surprises to the upside. It would take some distinct fundamental news to send the market roaring up again. With stocks turning up, we have to assume that people are switching their sentiment from gold, back to stocks.