January 5, 2005
Chart of the Day — Gold, Hourly Chart
Gold has fallen about $10 from the short entry I pointed out the other day. Yes, that’s a nice gain in just a few days time, but don’t forget to think about things in terms of risk and reward. I had no idea that gold would tank as hard as it has, but I did know exactly what the initial risk was, and that’s always the number to focus on.
If someone says I’m short gold or I’m long XYZ or whatever, ask them where their stop is, i.e. what is their initial risk. Train yourself to think in terms of risk, not reward.
Gold, Hourly Chart
Cat: | Time: 7:35 am (utc+8)