Is it too late to buy Gold?
Is it too late to buy Gold? I had this question posed to me today. To the utter disappointment of the person I told them I really do not know. They said this is what you do for a living. You invest or speculate in commodities and how can you not know? Whats going on! I explained gold can go to $2,000 or even $5,000 and clearly it would not be too late. However I explained it might be too late if gold goes to $200 or $500. To clarify further, I made it very clear I nor any know the future. This is the point of trend following.
The only way to invest in the field of managed futures or trend following is to have a plan and follow it or invest with a commodity trading advisor that you understand exactly how they think & how they manage risk. In commodity trading & trend following anything can happen. Once you internalize this thought you realize the only potential way to try to take money out of the markets is with a plan. You can not shoot from the hip and rely on your intuition. It all boils down to taking low risk bets, accepting small losses before they become big,having patience to let your plan work out and having the discipline to not give up when you will have the eventual ugly or long draw downs. Draw downs always happen and your worst draw down will be ahead of you not one that you experienced. Trend following is not easy. Trend following is not retirement in a box. You need to do your work. You need to mentally build up your mental fortitude for the eventual long and ugly draw downs. Trend following is not 1 or 2% per month and no Madoff aggravation.
Past performance is not indicative of future performance
Futures trading involves risk. People can and do lose money