Palladium Fantasy

The main goal of any good trader should be to spend time trying to identify new trends and future, this is not an easy task. It is a difficult task because it must go against the herd, it must repeatedly go against his very own way of thinking because it is a concept that embraces his own nature will naturally try to rebel against. The reason this fight is because we are wired to seek the company of others, we feel safety in numbers. This may be true when it comes to real life dangers, but when it comes to investing a fatal error.

In fact, if we just focused on the major issues we have discussed over the years, the end result would have been quite profitable. For example, we focused on a few Palladium late 2008 to early 2009. In the portfolio of gold, we had the label repeatedly screaming buy when palladium was trading our input ranges proposed. Subscribers know that we do not often use the phrase screaming buy, so when we do it usually means that we think we have a unique situation in hand that will not last long.

Towards the end of 2008, we also talked about the possibility for bonds to mount a strong correction and warned individuals against the opening of new long positions. Bonds mounted one of their strongest ever, and corrections in June of 2009, they decreased by more than 20%, a move heavily in the bond market.

Large late 2008 to early 2009, we talked about the fact that the market would mount a strong recovery that the fall was exaggerated, and it was trading in the extreme zones. Again patience and discipline are necessary for the markets do not immediately returned. We have published our final goals, more than 10,500 for the Dow Jones in February; at that time, everyone thought the world would end.

Towards the end of 2009, we began to work specifically on the markets pulling back. Therefore we started to close many of our active positions and is also the reason why we strengthened many of our stops. So far, we have had a foretaste of what lies in store, but the main passage has not yet begun. Most will wait until it is too late to react, very few have the patience to take profits and wait for a better opportunity.

We also spent a lot of time talking up the dollar and a strong recovery of gold is pulled back. Again someone might have jumped to other currencies in the dollar, has closed some of their long positions in gold and so on. We could list many stories, but this is not our purpose here.

Why are we raised this issue? Well, this is not to talk about our capabilities yet. Our goal here is to show that most people are lacking when it comes to patience and discipline, most people want to hunt every single occasion or at least what they consider to be an opportunity. For more opportunities means to follow the herd. They think that if they pay for something they should make maximum use out of it whether they win or loss.

To illustrate this point, try this simple exercise. Choose a day and try to do nothing for 1-2 hours and that we do not mean absolutely nothing. Very few will be able to achieve this goal. In fact, most will find it really difficult to do nothing. (Doing nothing does not watch TV, reading books, games, etc., it means doing nothing). However, many can run around the whole day trying to do something, but getting nothing. So, in reality, the truth comes down to this. Until we can make mistakes that we did something (even if it is nothing in the process of achieving) its fine, but actually sit and do nothing, now it's a terrible act and unfeasible. Now, apply the above concept for investment and how it is true. Many feel they should try to do something all the time, even if.