Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Reviewing Yesterday's Scalping Session
May 12, 2020 - (Gold Market Wire) - The parameters we set out at the beginning of yesterday's session worked out well, giving us a few scalps during the day for some money in the bank. The experienced trader can use margin in these situations, but discipline has to be very tight. Having said that, and knowing how "some" spread betting firms work, it should be noted 100:1 is not leverage - it is insanity. Leverage is in the 2x-5x range for anyone who hasn't lost his mind. Let's see yesterday's 30 minute run to see how we fared.
A couple of decent opportunities for those who know how to pull the trigger. The short side worked a bit better, since it gave us the first entry point in the European a.m. Anyone who was really ready to job the market might have done better on the sub - $1695 drops, repeating the process with a resting purchase overnight. That saw them in good stead today. You'll need stops just below $1690 if you want to get any sleep and not be tied to the screen all night.
Today's set up doesn't look a lot different, so we will carry on with the strategy. We're still in the triangle, but our feeling is that the market has a tendency towards the weak side. Like yesterday, we'll prefer to sell rallies. Buying near the line has to be done very cautiously, but can still be be executed. We have the same parameters as yesterday, minus $1, above and below the market - i.e. $1691 - $1719.
Let's see how we get on. You'll have to be ready to pull the trigger when you get close, take profit on small moves and run a tight stop.
It's about discipline.