Sold all my gold, got stung

[eljefe]

On 02/12/2018 at 16:43, Mcgrimes said:

Admittedly I’d class that more of a fundamental strategy; I’ve tried and tested typical ‘technical’ strategies with candlesticks and come to learn it’s a guess with less than a 50% success rate due to the spread. 

The chart you’ve shared would likey coincide with typical fundamentals such as P/E ratios.

What really frustrates me with technicals is the traders who value the Fibbionaci ratio like a golden ticket to the chocolate factory; and I bet some book sellers make a killing,

My strategy? Look for reliable earners with good track records and a place in the market. I’m boring when it comes to equities.

Great chart, I remember my wife scared of the market plummet and wanted to liquidate her 401k and I took ownership to make sure she does not do a foolish mistake, turns out most of it was in bonds lol put it all in VFINX when It was in rockbottom. Now its like over 4 times its value even with recent crash.

[eljefe]

On 30/11/2018 at 16:18, Glorfindel said:

It was actually supposed to be a store of wealth for 4-6 years and a hedge against the next  crash, so maybe not that long-term compared to most of you. Calling it an investment is wrong, I shouldn't have said that - I'm not sure gold actually qualifies as a proper investment. I'm just glad I got out of it before I lost even more.

And @silenceissilver with respect, I do not take financial advice from a guy filming a video in his car. 

Gold should be a tiny amount of your networth. It sounds like you had too much in gold and thats a terrible idea. Its a specialty hedge and as a tool for certain individuals who need to move large amounts of currency discretly (ie criminal enterprise/money laundering)

[dicker]

34 minutes ago, eljefe said:

Gold should be a tiny amount of your networth. It sounds like you had too much in gold and thats a terrible idea. Its a specialty hedge and as a tool for certain individuals who need to move large amounts of currency discretly (ie criminal enterprise/money laundering)

May I politely say I disagree that gold is used for criminal enterprise / money laundering.  

Criminals are desperate to get cash / gold / physical assets transferred into companies, accounts, trades and are even happy to pay tax on their ill gotten gains.  This is why there is massive scrutiny in all banking with respect to any transaction that turns a physical asset into a de-materialised asset.

Criminal enterprise as far as I am professionally aware is very keen NOT to own assets like gold

Best Dicker

 

[AuricGoldfinger]

@dicker totally agree - cash these days for anyone is a nightmare - even when its legit they treat you like pablo escobar!

[eljefe]

2 hours ago, dicker said:

May I politely say I disagree that gold is used for criminal enterprise / money laundering.  

Criminals are desperate to get cash / gold / physical assets transferred into companies, accounts, trades and are even happy to pay tax on their ill gotten gains.  This is why there is massive scrutiny in all banking with respect to any transaction that turns a physical asset into a de-materialised asset.

Criminal enterprise as far as I am professionally aware is very keen NOT to own assets like gold

Best Dicker

 

But there have been some instances of gold used to transfer large amounts of money from one place to the next. regarding washing money, there have been cases of that as well. The beauty of gold is how much money is represented in such a small item. When I hold my small 5 ounce PAMP bar I am amazed at how much money I am holding in my hand. I did not mean everyone who owns gold. And criminals would not want to own gold as you mentioned but it offers a nice way for those who want to move large amounts of currency a better instrument. 100 ounces  is small but represents a lot of 100 USD notes. 

[AuricGoldfinger]

Also true like my namesake 😆

[MoralHazard]

On 07/12/2018 at 10:35, Cornishfarmer said:

I hope he didn’t take out of gold and put in the stock market last week!!!!!

I sold £7600 worth of my stock investment portfolio last Friday that I bought two weeks ago. I got a loss off £600 and I am pretty annoyd to myself.

The stocks portfolio was supposed to be a long term investment. However I got spooked about the developments in the trade war between China and US. Now that the CFO of Huawei has been arrested the stocks can only go down. I have now decided that I will hide my money under the mattress. I can re enter the stock market but only after I have seen it go down at least 5%

Edited December 9, 2018 by MoralHazard

[MancunianStacker]

3 hours ago, MoralHazard said:

I sold £7600 worth of my stock investment portfolio last Friday that I bought two weeks ago. I got a loss off £600 and I am pretty annoyd to myself.

The stocks portfolio was supposed to be a long term investment. However I got spooked about the developments in the trade war between China and US. Now that the CFO of Huawei has been arrested the stocks can only go down. I have now decided that I will hide my money under the mattress. I can re enter the stock market but only after I have seen it go down at least 5%

5% is nothing. I’m waiting for it to go down 20-25%. You can lose 3% in a day.

[KDave]

You need to read some books on investing psychology to understand why you did that, and prevent yourself getting in that situation again, a book costs much less. You react like that to a 5% drop either because you need the money shorter term (you are being dishonest with yourself regarding 'long term investment') or you have invested too much money at once imo.

[jultorsk]

@MoralHazard is just joking... driving home the point with regards of OP...

[h103efa]

13 minutes ago, jultorsk said:

@MoralHazard is just joking... driving home the point with regards of OP...

Ha I read it as a that too. 

Sometimes I think social media and forums should have a sarcasm font! 

[KDave]

5 hours ago, MoralHazard said:

I have now decided that I will hide my money under the mattress. 

Ah very good. I give out that kind of sarcastic abuse regularly and should have spotted it. 

[Blockhead]

4 hours ago, h103efa said:

Ha I read it as a that too. 

Sometimes I think social media and forums should have a sarcasm font! 

[sarcasm] [/sarcasm] 

[vand]

Precious metals are a hedge against uncertainty. With the current Brexit situation and the wobble in the stock market, you want to be acquiring precious metals, not selling them. You have a very backwards and upside-down view of the world if you are "spooked out" of a safehaven asset class to jump back into fiat. Sadly, this is how most of the population thinks, and that's why we're heading ever nearer the financial cliff. 

[Pete]

There are risks with all investments and plenty of warnings.
When things are running smoothly and your portfolio is rising you can become smug, but without warning, something crashes knocking out all or most of your gains.
You must DIVERSIFY and spread your wealth into several different products.
Never place all your investments into the same basket as at some point you may be hit with a disaster that was not predicted.
There are few experts that get it right all the time so stick to well known products whilst checking fees which can have a big negative affect over time.
If you are a stacker then the general advice is not to have more than 20% of your total assets in PMs.
PMs are in the commodity class meaning high risk.
Everyone knows that high risk also translates to potentially high gains but also potentially high losses.
Another tip is never find yourself HAVING to sell.
PMs will fluctuate and you need to ensure you have cash or other funds in case you have the unexpected need for money.

[dicker]

@pete I think you are bang on.  I honestly think that you have to have the mentality that you don’t have to seek or buy at any specific time to invest properly.

Forget the Hurd and just do the opposite. You can do this quite technically / mechanically or you can take a more informed / gut feel view.

[FoolzGold]

11 hours ago, dicker said:

Forget the Hurd and just do the opposite.

Good advice, but even if you want to, who can forget The Hurd?

 

[dicker]

2 hours ago, FoolzGold said:

Good advice, but even if you want to, who can forget The Hurd?

 

Good pickup!

[vand]

13 hours ago, dicker said:

@pete I think you are bang on.  I honestly think that you have to have the mentality that you don’t have to seek or buy at any specific time to invest properly.

Forget the Hurd and just do the opposite. You can do this quite technically / mechanically or you can take a more informed / gut feel view.

I don't think its a case of just doing the opposite of what most people are doing. After all, it is the belief and the behaviour of the masses that drive markets in big trends, not those of contrarian. You have to run with the masses during the main phase of the market and even towards the start of the end, but you want to get out and eventually do the opposite of the masses towards the middle of the end and definitely towards the end of the end

Contrarian are usually right in their belief, but wrong in their timing, and they usually are far too early in taking up their opposing positions.

[sovereignsteve]

2 hours ago, vand said:

I don't think its a case of just doing the opposite of what most people are doing. After all, it is the belief and the behaviour of the masses that drive markets in big trends, not those of contrarian. You have to run with the masses during the main phase of the market and even towards the start of the end, but you want to get out and eventually do the opposite of the masses towards the middle of the end and definitely towards the end of the end

Contrarian are usually right in their belief, but wrong in their timing, and they usually are far too early in taking up their opposing positions.

As you say, the big problem is timing. Unless you're dealing with a long trending move, by the time the masses get on board, the larger part of the profit is already in the price, most people miss it. In most cases, going against the herd is the correct play.

[Pipers]

I have been reading this thread it's been very enjoyable.  As far as gold is concerned , it is my view one should not buy gold with a view to hold for longer than 10 years, if an opportunity comes your way to sell a small part of a holding because of a price spike and one was confident that the price was going to dip again then ok sell knowing you are going to buy back.  Remember you may lose if you choose to sell on a price spike as macro events happen too and the price may carry on moving up.

 

[KDave]

Maybe goes without saying but having some reserve cash acting as a barrier between unexpected bills and your investments is very important. If you don't have any emergency fund then your assets will end up being sold at some point before intended, regardless of what the price is doing. 

[RichmondStacker]

3 hours ago, KDave said:

Maybe goes without saying but having some reserve cash acting as a barrier between unexpected bills and your investments is very important. If you don't have any emergency fund then your assets will end up being sold at some point before intended, regardless of what the price is doing. 

 Very good advice.  I would also add clear your debts first too.  

[eljefe]

On 09/12/2018 at 00:42, MoralHazard said:

I sold £7600 worth of my stock investment portfolio last Friday that I bought two weeks ago. I got a loss off £600 and I am pretty annoyd to myself.

The stocks portfolio was supposed to be a long term investment. However I got spooked about the developments in the trade war between China and US. Now that the CFO of Huawei has been arrested the stocks can only go down. I have now decided that I will hide my money under the mattress. I can re enter the stock market but only after I have seen it go down at least 5%

All you had do insure your portfolio and sell an OTM call to cover the cost of securing your portfolio and with the leftovers from call premiums you can use it to buy some gold.  

I collected 17K USD in call premiums 2 weeks ago and bought a 5 ounce PAMP gold bad. Itching to buy the 10 ounce one now that I am  addicted to PAMP bars.

no need to panic if you hedge your portfolio.

[vand]

36 minutes ago, Bdean316 said:

Brexshit pushing gold to just under £1k an ounce - anyone considering selling some yellow metal?!

 

Let's see.. give up your hedge because your hedge is doing its job. Nope. Not even dreaming about it.