July 16th 2012

Hello!

I am going to keep this post short and sweet.

After my last post I bought another Gold at 1564.90 which brought my average price to 1573.40 ((1578+1564.90+1577.40)/3)

On Friday before I boarded my flight gold was at $1584.10 (up $10.70 from average price), I decided to take a profit. Although gold kept climbing throughout my flight I am happy with my decision to liquidate. It is a terrible feeling to stay in a position too long and pass up the opportunity to gain. You always win taking a profit. Here's how I can calculate the gains from this transaction:

(Settle price-purchase price) x tick yield = Profit
You would want to do this for every position

1584.10-1578 = 6.1 x 100 = $610


1584.10-1577.40= 6.70 x 100 = $670


1584.10-1564.90= 19.2 x 100 = $1920
__________________________________
Total Profit                          $3200.00


If you followed this pick you are $3200 richer! Not bad for a weeks work.

Remember when you BUY (long) a position you think the market is going to go up. When you SELL (sell) a position you think the market is going to go down. The person who sold me these three positions thought the price of gold was going to decrease. I thought it was going to increase, I was correct and sold them at profit to someone else who thought the market was going to go even higher.

That's all!

Brit