The gold futures have been on most of my trades lately. Seems like this is sometimes stable enough in order for me to watch and get in. Seems like the price action of gold futures can calm down to where I can see the long and short of it better. Just last week I was moving on gold but it was not as nice. The reversals are something I’m gravitating to. The trend is hard to call, for example, in NASDAQ futures, and even gold sometime. I’ll have to see how this paper trading turns out over time.
The story of today’s title comes from a video I saw about waking up, setting up your trade station, and quickly taking a trade. This above trade is one of those, and apparently, I should never do this. The advice was to sit in the market and the price action till you see better trend and reversal signs, then take a trade. For the above trade, I know that gold has a tendency to rise steadily higher with no drawback, and then precisely do the same this coming down, like a rubber band being stretched. The gold line you see if the 200 EMA (moving average of 200 days) and I notice that if the price action moves above or below, it “mostly” tends to come back, or be drawn back, to that average line. Its a good indicator for me where to get in. This is a $800 trade, so good call on my part.