25 Apr | Buying Gold
So I’m up and running with my first financial spread bet for a while. The ghosts of financial spread betting failures past have been laid to rest with a renewed bout of reading and I’m ready to make my fortune (sic) trading commodities.
I popped 100 quid in my trading account (big spender) and I’ve bought gold at 10 pounds a point at $1,502 with a stop at $1,492.
The stop is a little closer than I’d like it but being an optimist (albeit one with only 100 quid in their account) I’ve opted for a larger bet and a closer stop rather than a smaller bet and a more distant stop. Hopefully I’ve covered some recent levels of minor resistance and I plan to keep an eye on things.
I’m using this bet as a bit of a taster bet to get me back into spread trading. To give me a reason to stare at candlesticks and a get a little more experience. Long term I’m pretty confident I know where gold’s heading – I don’t plan to sell gold for quite a while yet – it’s just the short term blips on the way that are waiting to trip me up with such a tight stop. We’ll see how we go.
So why gold? Now I’m so far from being an expert on trading anything metal it’s almost laughable, but when compared to trading FOREX I think there are probably a lot less definable macro-economic forces at work forging the price of gold.
I realise at a level, that pretty much everything is potentially a factor in determining pretty much anything that is traded globally, be it commodities or FOREX from rice to the ruble. But when trading a currency pair there just seems an inordinate amount of financial data that is spat out on a daily basis (I get the news feeds and can’t even keep up with the headlines) that can effect the relationship between two currencies.
Whilst – on the most basic of levels – in times of economic uncertainty, gold is a financial haven. And it’s pretty hard to argue – with the news blaring the Syrian situation in the background as I type – that these my friends, are economically uncertain times.
I know a little about charts and the five year chart (courtesy of our friends at SharePrice.co.uk) for gold makes for some pretty optimistic viewing (see below).
So with the markets closed for Easter, I’m currently 27 quid up on my inaugural gold trade, having been almost 64 quid up at one stage and dropping down probably 30 quid at another. Now I realise that 10 quid a point ain’t going to see me buying that Caribbean island any time in this financial year, but it’s nice to be back in the spread trading game with an open position that I’m kinda comfortable with.
Thanks again for dropping by.