Gold – How to trade Gold via DGP DZZ or GLD

Share EmailFacebookGoogle+TwitterLinkedInReddit

GOLD and DGP charts posted for members:

I prefer to trade DGP DZZ vs. ounces of GOLD since i don’t hold it longer term and just swing trade through the key levels. You can also trade GLD or GLD options to increase the % return.

Had someone ask me yesterday that had bought gold into resistance and almost panic sold into yesteday’s support.

This is a big mistake new traders make by chasing positions into resistance and then panic selling into support levels. Its almost a perfect way to continuously lose money in the markets or in this case GOLD or any commodity.

I’ve had great success on DGP DZZ trades by trading the GOLD extended moves & wait for topping & bottoming signals for entries/exits.  Its a simple technique but works well since by taking the extended moves I can offset any decay on these double ETF’s

Here’s some charts I posted for members on DGP & GOLD recently on entries /sells we had

A few charts below fromFeb 14th,  Feb 29th  & March 6th – As you can see i do a lot of risk/reward and chart analysis before i enter any  trades. So learn from this since  PLANNING  a TRADE is more  important than the trade itself. Don’t buy blindly but use the key levels to your advantage.

I’m patientlywaiting for setups and I don’t rush into trades. Since I mostly swing trade I pay less in commissions vs. a day trader who is constantly trying to chop away at intraday movement. I find this market has rewarded swing traders much more than daytraders. I have daytraded in different markets like 2009 but the past few years I’ve stuck with swing trades and happy for that.

I find that many traders tend to blindly buy with no clear idea of what they’ll do if that position goes up or goes down.

Double click on the charts to read the notes much clearer: The First few charts are of the big down day on GOLD Feb 29th

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

These charts below are from March 6th . We were in between that 1,675-1,650 target ( support ) so I added to  GOLD added to DGP yesterday at $53.67 ( I had left room to add more from my Feb 29th entry in case we dipped back) -could have had an easy sale on March 1st on the bounce back but was willing to wait for $58+ area

as per my initial buy

 

 

 

 

 

 

 

 

 

 

 

 

Prior to these plays in Feb we had a nice long DGP play chart below :

bought on Feb 14th and sold Feb 22nd for just over 7% from $56.62 and $56.78 to $60.72/60.77/60.80 — From that time Gold went from 1720 to 1780′s which was a  3.4% move so I got just over double the return by using DGP — in between i did miss a few  DZZ short plays.

but as you can see from the GOLD charts above i use that support/resistance to my advantage & as a buying/selling points.

 

Feb 14th chart i posted on DGP for members the day we entered DGP  & sold Feb 22nd

All trades like this in real time on our private feed : http://twitter.com/stockguy22feed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hope you found this helpful,

If you like this type of analysis I do it on all trades I buy /sell for members:

 

Stockguy22

 

 

Posted in Charting & Analysis, gold