November 9, 2009

On very short term trades, the difference between making money and losing money is trade management. Based on the ZYX Change Method trade management guidelines, 5% short should have been scaled in at $1082.5 and another 5% at $1100. The method suggested aggressively shorting just below $1105. and a stop zone starting just above $1105. However, the market did not cooperate as gold futures gaped higher. Based on the methodology an aggressive short position of 50% is taken at $1111. with a tight stop zone starting at $1115. Based on the price action, it is prudent to start scaling out exits around $1103.… Please click here or the title below to read more.