Saturday, January 15, 2011

Gold on 17-Jan-2011 (Mon)

Gold on 17-Jan-2011 (Mon)
(1 gm) .999 Fine Gold Bar - (With Assay Card)

I shorted Gold at 1385, Gold market has Triggered my stop loss on Thursday night 13/1/2011 @ 1391, resisted at 1392, form a candlestick reversal pattern (bearish engulfing) and .... and dive down.
Price go back to entry, and entered to my target price.

Taken my losses, happy for the little loss of 6pts.
I'm looking forward to retracement for another short entry.

Reckon market to find support like previous low 1352 (Friday low 1354).
This time, retracement won't go too far, may be 1367, max 1377.

I would possibly place my short at 1373-1377, SL 1385.
Target exit 1350, 1330, 1315. revised: 1358, 1344, 1330


Silver on 17-Jan-2011 (Mon)
Didn't trade on Silver, but it seems that my pick to Short 29.26 or 29.76 seems fine.. and market turn after 2nd short level.

Yet to hit target price 27.586, Friday low 28.059.  Make all figures look simple... from now on... I will post 2 decimal...
Reckon market to retrace to 28.92,  pick short at 28.92, SL 29.06 (14 cents), TG 28.35 (57 cents), Ultimate TG 27.60 (132 cents).

Silver contract size is big for me... Trading Gold means cannot trade Silver :p
Lets get Silver contracts explained:

Silver Futures
Product Symbol: SI
Venue: CME Globex, CME ClearPort, Open Outcry (New York)

Contract Size = 5,000 troy ounces
Min Tick Size EFP = 0.005 (0.5 cents) per troy ounce
Contract / Tick = $25 per contract
1 full Point (1 cent) correspondent to = $50 per contract

Trading Example:
Sell 5,000 troy ounce of Silver @ 28.920 per troy ounce = USD 144,600
Buy 5,000 troy ounce of Silver @ 27.600 per troy ounce = USD 138,000
Investment (Initial Margin*) = USD 7,230
* Initial margin requirement, we are taking SI at 5% now, my preferred broker also offer 5%.
Profit = +132 cents correspond to Profit = +USD 6,600
ROI = 91%

Good news, I just knew another broker offer mini versions of all Standard Spot Metals contracts at 10% of the main contract size.
meaning, in this case, margin requirement is USD 723 for 1 mini contract :)




Disclaimer: Margin product (leveraged product) like Gold and Silver can result in losses that exceed your initial deposit. Trading margin product may not be suitable for everyone, so please ensure that you fully understand the risks involved, control your risk and do not let Greed overtake you.

Gold Bar Image extraced from Amazon:


Related Post: Gold Futures and Silver Futures

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