Article Regarding Metals Shorting
I read a great article today on Kitco's commentary section.
It is quite advanced and macro in its views.
However, the author clearly explains his views on the longterm shorting of precious metals by the "big boys" (as I like to call them) while accumulating more and more in physical storage.
The one paragraph that I loved most was one that I think applies most to a trading strategy:
The shorts realize that in any bull market there is bound to be periodic profit-taking. They don’t have to induce one. It will happen on its own accord. It is spontaneous and unpredictable. While it scares the daylight out of the longs; it is picnic for the shorts. It provides a reliable steady income for them, one that the longs sorely miss. Moreover, the shorts tend to sell into strength and buy into weakness. This is their strength. The longs typically buy into strength and sell into weakness. This is their weakness.
It is so unbelievably simple yet it is so hard to do. It is so hard to buy on a large down day. Yet that is the way to make the most money.
Then if you did somehow buy on a slaughter-fest day, it is even harder to sell on a 10-20% up day for your stock.
There is nothing wrong with you. It is simply human nature. And this is our biggest, strongest opponent in investing: ourselves.
I myself still make many mistakes but I try to learn from them and remind myself to look a little into the future because this huge commodity bull market should continue for another approximately 10 years.
10 years is a long time to learn from your mistakes and best of all, MAKE A TON OF MONEY!
I hope we can all here profit handsomely while still getting out before the bubble pops.
I highly recommend you read the whole article here.