Gold hits another 28-year peak as dollar plunges

Gold is a runaway train to the upside. Four more trading days on my projected downside reversal timing point based on Fibonacci ratios.

So why do I try to call market turns instead of letting the market tell me when it is time to turn??? Even though I missed my last two trades in the gold stocks I remeber my last big trade from 12 months ago that netted over $150,000. So is it greed?? Or my ego wanting to be right? Or fear of risk or lack of focus or discipline?

At any rate the financial markets fascinate me. I would rather be a successful trader than an economist. (An economist was once described as a guy that knew 101 ways to make love--his only problem being that he didn't know any women.}

Gold/XAU Ratio 4.30

"One of the hallmarks of great investors is the ability to ride a wave of seemingly irrational action. Rather than fight it and try to come up with reasons that it is doomed to fail, great investors go with the flow and profit from having the wind at their backs.

The reason this can work so well is that trends can last much longer than we believe they will. People intent on calling market turns are inevitably too early. It is in those stages when we first start thinking the market needs a rest -- but keeps going and going and going -- that the trend-riding investor makes exceptional gains.

The secret to success is to ride that momentum as long as possible but to be quick to lock in profits at the first sign of trouble. Unfortunately that is a lot harder than it sounds. When we are distrustful of the market and believe it is acting irrationally it is very easy to perceive every minor hiccup as the beginning of the end. We know it won't last, so we overreact to relatively minor issues." Rev Shark's Blog: Why This Is not an Easy Market for Traders
Originally published on 5/04/2007 at 8:49 a.m.