No More Safe Havens
There were four thought of Safe Havens this year. Swiss Franc, Gold, Yen and US treasuries. Two of these have fallen dramatically. You need to understand everything has risks. There is no free lunch. There is really no place to hide. Even leaving money on deposit is not safe. Who knows what will happen to the Yen and interest rates the remaining two? I sure do not nor even care to predict. This is what trend followers do. I even do not know when exactly a trend begins. I just take small low risk dollar bets to see if the trade will work. The reality is most of my trades do not work but overtime I end up falling into some trends. I stumbled my way into the Gold and Swiss Franc trade. These trades worked to some degree but ending giving back a good deal of the profits. Again this is what trend following is. You do not sell at the tops nor buy at the bottoms. I had no special hidden CNBC knowledge.
Instead of looking for safe havens realize that anything can happen and prepare for it. Manage the inherent risks when investing. Use stops. Try to take low risk trades. Do not risk too much on any trade. Do not get heavy in any sector no matter how much you like it. Do not take on more risk taking new trades when your open trade equity is reaching an extreme.
Basically have a plan and have the patience, discipline and realization that trend following is a long term approach. Trend following is not for everyone nor retirement in a box.
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. Past performance is not indicative of future results
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