For Greater Profits; Go Against the ‘Crowd’!
‘THE THRONG IS MOSTLY WRONG‘ . . .
Our latest and best examples for this are the precious metals markets.
GOLD and SILVER were hotly promoted and discussed endlessly on forums and financial talk shows. Ads selling gold and silver coins, even now, can be found almost everywhere on the web.
What’s wrong with this picture?
There’s way too many sellers. In short, it appears that, at these high prices, everyone’s already bought who’s going to buy so there’s no where to go but down (and way down at that!). Most recent purchasers are under water now with nowhere to go.
For quite some time, I’ve expressed that Gold and Silver are merely commodities not money as widely promoted today. As commodities, they’re subject to the cycles OF commodities and that cycle is now down and has been for some time now. The super peak for this cycle has come and gone unnoticed by the masses who now await and fully expect it to go higher.
If one wishes to hold gold or silver as a hedge and not an investment, then, price is largely irrelevant.
However, as this is an educational site for inquisitive investors and those seeking to learn where profitable opportunities may exist in today’s markets, let’s take a turn off from the main highway where the crowds are and gain some insight into where the profit could be made from Gold even during it’s slide downwards in price for these last 9 months.
Prices for cash Gold since last September-October have declined by over 30%.
That’s a negative, asset-depleting figure.
THERE’S A BETTER WAY TO TAKE ADVANTAGE OF FALLING MARKETS
In a world with so many over-bought markets, one needs a strategy to take advantage of declining markets more than ever before.
Fortunately today, there are short-ETFs (Excahnge Traded Funds) and ETNs (Exchange Traded Notes) which allow one to participate and profit from declining markets and some of these are leveraged 2 or 3-times.
Here’s a list of some example stocks for the GOLD market (there are others as well):
- Short, non-leveraged: DB Gold Short ETN symbol: DGZ
- Short 2x leveraged: ProShares Ultra Short Gold ETF symbol: GLL
- Short 3x leveraged: VelocityShares 3x Inverse Gold ETN symbol: DGLD
To view what could have been the alternative returns instead of standing back and losing 30% on Gold’s decline, take a look at the charts below for all three of these above-listed stocks . . .
[Content protected for members only]
DISCLAIMER AND RISK DISCLOSURE
The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, BINARY OPTIONS, OPTIONS, FOREX, BONDS OR FUTURES.
WD Gann Lost Secrets.com & GR Harrison © 2013
U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures, Currency and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information on this website or any manual, course, module, e-book or software purchased from this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold www.money-tigers.com, the money tiger’s group and any authorized distributors of this information harmless in any and all ways. Any data and information is provided ‘as is’ solely for informational purposes, and is not intended for trading purposes or advice.