Buy and Hold is just plain stupid. Why suffer large losses when that can be easily avoided. Because I didn’t know better, I was a Buy-and-Hold dummy, but I happened to be lucky for the time period I was fully in the market.
Luck is not the intelligent way to handle your finances.
Gold is no different than any stock/commodity/ETF – they are Trading Vehicles. Once you come to grips with that reality, you start heading down the ‘smart road’.
Anonymous
January 27, 2016 4:15 pm
Kokoda,
So what is the ‘smart road’ in today’s financial and economic climate?
MarsPleaseAttack
January 27, 2016 4:33 pm
Gold is not an investment vehicle; it is a wealth preservation vehicle (they are not the same thing.)
But it really only works if you have physical, and only if that physical is where you can lay hands on it.
General
January 27, 2016 4:58 pm
Gold and silver are the only true money. Everything else is just legalized fraud.
Please read the coinage act of 1792 by George Washington. (The real US money)
Fiatman60
January 27, 2016 5:20 pm
I’m on board with “MarsPleaseAttack” Gold is not an investment vehicle – it’s for wealth preservation only. The average Joe should only own it (physical) as an insurance policy against fiat collapse.
Anything else (ETF’s futures etc) you might as well hand your money over to the guy walking down the street passing your house……. cos that’s what Wall St is gonna do……..
kokoda
January 27, 2016 5:35 pm
Anon….I’ve previously provided this info as comment to earlier articles:
For working people, I suggest using a weekly chart of the instrument (symbol) and you can use stockcharts.com (free along with others). Your goal is to catch the meat-of-the-move, by using two moving averages. As a start, I would suggest an EMA of 10 and an SMA of 50. Plug your symbol in and check it out. This method allows one to review on a weekly basis.
For non-working people, use the daily chart. Try using an EMA of 10 and SMA of 40.
Both of the above are not for active traders – they are for the average person that wants to build up their finances over time.
The most important rule, THE MOST IMPORTANT RULE, is to only lose small amounts of funds on ANY instrument. The methods above meet that objective, instead of watching your instrument go to zero cuz you are mentally frozen Without a Plan. You must have a PLAN!!!!!
IndenturedServant
January 27, 2016 6:54 pm
If I had my math right on that periodic table of commodities chart posted here a week or so ago, gold returned 9% for the period shown and silver returned 10%. Volatility was huge though and not for the faint of heart. Unfortunately the rate of inflation held actual returns down near zero. Book your losses each year like kokoda alludes to and you’ll do better.
SpecOpsAlpha
January 27, 2016 8:22 pm
Pick 4 or 5 sectors. Sell the ones that have soared, buy the ones that have been crushed. Just don’t do it too soon.
I just dumped Biotech and Internet several weeks ago. I switched to gold miners and major oils.
Here’s a free web site that you can use to plot your course.
This advice is probably about a year too early. We haven’t seen final washouts in either oil or the precious metals. There is some price deflation still to come. We have not seen any final selling panics. Keep your powder dry so you can pick up the pieces later on.
Buy and Hold is just plain stupid. Why suffer large losses when that can be easily avoided. Because I didn’t know better, I was a Buy-and-Hold dummy, but I happened to be lucky for the time period I was fully in the market.
Luck is not the intelligent way to handle your finances.
Gold is no different than any stock/commodity/ETF – they are Trading Vehicles. Once you come to grips with that reality, you start heading down the ‘smart road’.
Kokoda,
So what is the ‘smart road’ in today’s financial and economic climate?
Gold is not an investment vehicle; it is a wealth preservation vehicle (they are not the same thing.)
But it really only works if you have physical, and only if that physical is where you can lay hands on it.
Gold and silver are the only true money. Everything else is just legalized fraud.
Please read the coinage act of 1792 by George Washington. (The real US money)
I’m on board with “MarsPleaseAttack” Gold is not an investment vehicle – it’s for wealth preservation only. The average Joe should only own it (physical) as an insurance policy against fiat collapse.
Anything else (ETF’s futures etc) you might as well hand your money over to the guy walking down the street passing your house……. cos that’s what Wall St is gonna do……..
Anon….I’ve previously provided this info as comment to earlier articles:
For working people, I suggest using a weekly chart of the instrument (symbol) and you can use stockcharts.com (free along with others). Your goal is to catch the meat-of-the-move, by using two moving averages. As a start, I would suggest an EMA of 10 and an SMA of 50. Plug your symbol in and check it out. This method allows one to review on a weekly basis.
For non-working people, use the daily chart. Try using an EMA of 10 and SMA of 40.
Both of the above are not for active traders – they are for the average person that wants to build up their finances over time.
The most important rule, THE MOST IMPORTANT RULE, is to only lose small amounts of funds on ANY instrument. The methods above meet that objective, instead of watching your instrument go to zero cuz you are mentally frozen Without a Plan. You must have a PLAN!!!!!
If I had my math right on that periodic table of commodities chart posted here a week or so ago, gold returned 9% for the period shown and silver returned 10%. Volatility was huge though and not for the faint of heart. Unfortunately the rate of inflation held actual returns down near zero. Book your losses each year like kokoda alludes to and you’ll do better.
Pick 4 or 5 sectors. Sell the ones that have soared, buy the ones that have been crushed. Just don’t do it too soon.
I just dumped Biotech and Internet several weeks ago. I switched to gold miners and major oils.
Here’s a free web site that you can use to plot your course.
http://www.stockcharts.com
Even better: http://www.abovethegreen line.com
This advice is probably about a year too early. We haven’t seen final washouts in either oil or the precious metals. There is some price deflation still to come. We have not seen any final selling panics. Keep your powder dry so you can pick up the pieces later on.