BUY KGN.TO $3.10 This gold stock was on my watchlist earlier this week when I noticed that it broke out of a nice pennant pattern last Friday. I was thinking of buying it at around $2.75 but had second thoughts about the trade. Too bad I missed the 14% jump the stock took today beacuse I lacked the confidence to believe in my trade. The stock closed strong today and broke above some short term resistance and I believe it has good probability of heading higher. With commodities leading the run higher and the US$ dropping like a fly, gold is an asset that everyone should have some small exposure to right now in their portfolio to hedge against inflation that is coming our way. Gold is trading rangebound right now and many are calling for +1000$ gold prices before year end. It has gotten stuck at around $1000 few times in the past but I believe we can break above this in the near future.
I am also looking to adding to my position in BNK.TO. Huge volume today and looking poised to break out here. If it does, I will scale in and add to my position. Watch out for this one as long as oil prices hold firm.
Regarding confidence and conviction, you must have these two qualities if you want to be a great trader. Do your homework, study the markets, have a solid trading strategy/plan and be confident when entering a trade. Once you get scared and too emotional, the markets will crush you. Markets do not care about you and it is a battle every day so have the conviction to believe in your trading strategy and plan.
Comments