Even when we are still far from the bottom my planning process for the bottom is in full swing and has been for months already. If you think this is too early then think again, because you are “late” as the control entry sequence should be worked out already, you can not be late to this gold bear riding party or the performance will suffer.
Lets say we are just a few dollars above the $8 market I will close of all my GDX short positions and then put in my control sequence right away. The reason for this is many times ,the last move can be deadly as the bottom falls out with gold stocks. GDX can crash right through the $8 price level right down to $7 in one move that nobody can catch. All your orders must be set before this and then you just wait for the markets to do their thing and all your orders would be picked up instantly when this happens.
As soon as this happens you will be deep in the red and panic will ensue! Oh my god! What have I done” I see “red” and I’m down 50%. For the very first time it is scary when we see red but it is only a loss when you take the loss. This sea of red might have 5 orders in it and not a single color of green is showing. Frickin scary right? I will tell you in blunt terms that I always see red before I see any green at all. Your last buy order will give you first clues that a turning is in progress by flickering green here and there. At that point your 50% draw down moves to 48% or 46% and you will slowly see the red numbers get better, at that point the turning may be in place. At about the same time more green lights will show until one day “ALL” lights are green and we have turned the corner. When you see and experience this as it happens, you get a rush that is hard to explain to anyone. Green is Good!
Also remember that if you started your control entry sequence under $8 then as “soon” as GDX crosses $8, your entire account will be green, and you are just barely out of the $8 gate! From $8 you should already be in the green on all shares, and it should stay green for the entire run back up to $55 or so.
This is not some tall tail I’m telling you, but it comes from experience as it is my preferred way of entering a major crash bottom. The same thing already is happening with my short bets on GDX and another drop will send my 500 shares into the green. I think I may have the chance to look for a 1200 share position as that duplicates my 2008 crash bottom order as well. I screwed that up a bit but still came out smelling like a rose with one of my best GDX trades of my life.
We could get the same this time, but we have a much bigger support price than 2008, as in 2008 we had no real bottom. At $8 this first leg will complete and then we start on another huge counter rally that will “also” be a bear market rally. After the big peak is in, GDX will suffer a bear market that will destroy any smooth talking gold bull that is in the way, as gold bulls will get shredded again. This time it will be a bigger shredder as the gold bulls will be fat with profits as well. If someone comes along and tells you that your are breaking the rules when buying low, then tell them, “What fricken rules? There are no rules in a bull and bear fight, in a ring! The only thing that matters is that you find the first golden bull and you ride for a personal best trade. I don’t give investment advise as I’m not an investor but a trader speculating on major turnings. I only look for the best possible positions in any 5 wave run as that is what creates long or big moves and are a sight to behold. An investor rarely does this as they never would skew such a trade as it is to risky. I do it all the time to supplement my living as I’m rebuilding my account.
What we all must know before hand, is that if in a panic and you don’t know what to do or are confused, then go to your account at night and put all orders to sell at market and you will jump into cash before you get up in the morning. “GO TO CASH”, if need be as that is the traders safe-haven world! We don’t need fancy footwork in trying to stabilize our portfolios as we have none. In 5 minutes of opening you will be as stable as a rock, and then get ready planning for another turning. Capital preservation is the top priority here, nothing else matters. If ever you were to carry your 100 shares, down, up and then down again. Nobody on this planet has the right to tell you how to trade because if I had a trading house you would be the first to join my club.
This is long and drawn out but I will add some more pages below until we cover the full 3 moves we need to make to ride both ways. By only knowing how to go “long” we are only running at 50% efficiency and that to me is unacceptable to leave 50% of the money on the table.
I will post my control entry sequence later below this page, so we will be prepared as best as we can before this crash hits bottom. (5 orders)
All what I have just explained, I explained to a 28 year male Millennial last night, and he is a young working native kid. After this I asked him, “does this all make sense to you?
And he said, “Yes”.
When at this low bottom and cries of deflation are rampant, then think about the real fundamentals already in place that will send the gold price soaring again. I will let you figure it out as it is important to only those that are “in”.