Hubert Senters here.
We’re going to have to update our targets on Gold because it continues to rise at a fairly decent pace so it’s almost hit our $1,983 area. What we’re going to do is we’re going to go back one more step right there and give ourselves a little bit of breathe of room there. And there we go.
It makes more sense. Next target is going to be $2,010, $2,047. Now, if you’ve never traded Gold futures or Gold in general there’s bunch like you can trade physical Gold and we call it Spot, SPOT which means the physical stuff you can hold in your hands like coins and stuff.
Futures are the underlying commodity. The stuff that they get out on the ground and that’s how it’s priced on that situation. If you’ve never trade it before you may not understand the opportunity that you’re missing if you’ve never traded Gold before.
Let me walk you through it. Let’s just say that you got long. Let’s just say yesterday is low around $1,900. And today is trading at $1,954. Right now it’s trading at $1,954 so we’re going to say you got in around $1,900. I’m going to use my pen here to kind of illustrate what’s going on and walk you through this example.
If you’ve got long here at $1,900 and then you exited today at $1,954 you would be up $54 points so Gold is a $100 per point. So you times that times $54. Now, I’m making sure just so I don’t make a mistake. I know what it is but I’m just double checking myself here.
What we’re going to do is we’re going to go $54 points times $100. There you go. So you would weight a grand total of $5,400. You obviously have to have money in the account to do that. Most futures account you’re going to be required to have a $1,000 to $3,000 to start with in order to do that.
You’re going to have a stop-loss. Let’s say that you had $3,000 in account. You risk $1,000 of it to see if you can potentially $5,400 that’s the type of things that we’re talking about when we’re saying pay attention to the price of Gold as it rises.
Now, if you’re still holding if you make more than $5,400 points in the past two days obviously you would make money. If you were short you’d be losing money. You can also get stopped out and you can be wrong and lose this same amount of money. It’s very important that you get the direction right first and make sure that the range is expanding $20 points a day or so and that you’re on the right side of Gold.
Hubert.
