Issue #5
Dear Member,
Gold and silver are down again this morning as they grope for what could turn out to be a major bottom. This makes shorting gold or silver right now problematic. Going long is also risky.
That said, I need further confirmation before issuing a new trade. Therefore, this morning I recommend CANCELLING all outstanding orders.
Don’t worry. You will have a good trading opportunity coming up soon. Right now, we need to see the dust settle a bit. I don’t want you to take on undue risk in jockeying for a good position, either long or short.
So I repeat: Cancel your outstanding orders to purchase ProShares UltraShort Gold (GLL) and ProShares UltraShort Silver (ZSL).
While we await a good signal, let me answer some additional questions from subscribers. Questions have been edited by me for purposes of clarity and brevity.
Q: Can I use GLD CFD (contract for difference) to enhance the return while keeping risk the same?
A: You are free to use whatever instrument you what to. But be advised, I prefer you stick with what I recommend. CFDs, or “Contract for Difference” are not all that liquid at times and are very broker specific.
Q: I bought over 1,000 shares of SLV two years ago at about $45/share, and I already have a 50% loss. Should I keep those shares and wait for sliver to come back one day?
A: As an editor on a newsletter, I cannot render individualized advice.
Q: I live in Australia and with Daylight saving, the New York Stock Exchange opens at 10:30 pm to about 4:30 am our time. Have you considered the time differences for people on the other side of the world?
A: My signals are based upon New York markets, the most liquid. I myself live in Thailand, 11 hours ahead of New York. It’s inconvenient for me as well, but we do what we have to do to make money.
Q: What’s your experience with using conditional orders, such as an “OTO” order to place a limit order to buy, which triggers a Stop-Loss order to Sell if the limit order executes?
A: If your broker handles them, great! Most brokers these days do not handle them. So for the benefit of the majority of subscribers who cannot avail themselves to those types of orders, I give the specific details on each order.
Q: Just wondering if we can have the spot prices that the recommendation prices are derived from in the action alerts?
A: There are too many variables to accurately translate spot into the corresponding ETF price. But where possible, I will try to do that for you.
Q: I don’t seem to receive Gold and Silver Trader (GST) issues by mail. Why?
A: It is an electronic publication only. Please make sure you have whitelisted the GST email address. Instructions can be found by clicking here.
Q: Can I add more than the one mobile number to the SMS text message service for Gold and Silver Trader messages?
A: Absolutely! To receive SMS messages at more than one mobile number, please contact Customer Service at 1-800-291-8545.
Stay tuned!
Best wishes,
Larry
