I am angry at myself. I chose to buy small dips in gold and even worse average down more. Everything is broken even more. Everything is detached with relation to USD. I am not looking for it to be long term. I may be lucky to get a dead cat bounce but that will be it before another low...then it will be dead for awhile. Should I cut my losses on the bounce?
depends... what are you buying? etfs, reverse leveraged etfs, miners, what???
If just something like the GLD and your time horizon is more than a few months out.. just keep holding. Gold will ultimately threaten its all-time highs, but that won't be for a long time... I mean we made the call months ago on these boards that metals were finished, where were you? In any case, just hold if you aren't facing time decay.
My gold entry was over 10 years ago at $310. Just a hedge against the end of the world as we know it, so I don't trade it (I do trade silver though). Of course the trader in me thinks I shoulda, coulda, woulda, (but didn't) unload at $1900 and wait for a point to repurchase it, but that was not the point of buying it in the first place, so it remains untouched, and I will ride it back to $310 and they'll have to pry it from my cold dead hands (along with my guns). Hooo Hah!
Do not average down anymore. Do not add more funds to gold trades.
When GLD up, sell some and buy call options DUST DGLD DSLV (higher %). Huge % even scary move.
Good luck. My brother and sisters did the same thing. I called and beg them not to trade commodity and they said average down was going to get their money back. One sister called early this morning to ask me looking at charts for her. I said GLD can go to $103 $100... And who knows, so unpredictable.
There is absolutely zero hope on GLD. GLD is under 200 ma. Sell everything and buy stocks/options. The market has bottomed and its still above the 200 ma. Earnings season is 7/8 with AA. The market is historically higher during earnings season. You'll earn back the money you lost, and make more
Sentiment: Strong Buy
I got it handed to me this week too. I'm long nugt calls since thursday. The fact is gold has ALWAYS retraced half of its dump before declining further. I obviously timed it wrong but when it stops free falling I'm now looking for a bounce back to 1280/1300. I plan on exiting then, or holding worthless til expiration which is about what they are worth now. Can't win em all...
Here's a thought for you. Sell some calls, as many as you can, for 2015 expiration, on the bounce.
Buy puts. Get at least one put for each 100 shares you're in. Make these long dated.
Also look to get some additional puts at least one month out, preferably three, and stay with in three strikes of the money with these. This round of puts should be bought on the bounce, and it's this that'll turn your loser to a winner while you hold your gold long term.
Of course if a long term bottom shapes up, get the heck out of your puts.
I doubt gold has put in a meaningful bottom yet, people who have been long for many years will be dumping, and more recent longs will be dumping as well. Not sure how many newer longs are on margin, but at any rate, major support has been broken and I see nothing to stop gold from going to 1000 unless interest rates get smacked down.....
And that's what to watch for clues is interest rates.