What Was Value of MY Gold Commodity Markets Forecast Part 3

As I say that best trade is when a trade sets up and presents itself in our lap. Gold Commodity Market trade was the best example for one of those trades.

When we, as a trader learn to have patience in our trading business, we become a very successful stock market and or commodity market trader. Patience is a virtue, we have been taught that, since we were kids. But, in my opinion, its (one of the best and most valuable) test comes in the business of trading (or investing). A trader must exhibit patience to enter the trade and once the entry in a trade has been made, then trader must also have patience to let the profit run, while keeping the protection of the profits in the trade, locked in.

Let’s review, how my Gold Commodity Market Forecast, had turned out to, since I predicted a serious correction in the Gold commodity market was imminent.

I had issued a Gold commodity forecast on 12-02-09 and predicted that once GLD tops out on 12-03, then Gold commodity market would start a noticeable correction.

Now for the review of the forecast, I have to use a language to be in compliance with the laws. Therefore, hypothetically, a put option bought on 12-03-09, GLD Dec 2009 114 @ approximately $0.85 per contract would have cost a merely $85.00. It closed on 12-11-09 at the last price of $4.90, but it traded as high as on Friday before the close $5.35. One could have closed the contract easily at $5.00, but I shall be conservative and considering the emotional dilema facing a trader, not knowing when to close, and therefore, closed the contract at $4.85. It netted a profit of $400 per contract. If one had invested $850 for 10 contract, the profit would have $4,000 or an investment of $8,500 would have yielded a whopping profit of $40,000 in less than 10 days. This is over 470% profit in 10 days or 16,470% annulized return on the investment. IT BEATS ALL Those Newsletters solicitation EMAILS, YOU RECEIVE FOR THE SOLICITATION OF NEWSLETTER, WHICH COST AS MUCH AS $2,500 PER QUARTER (e.g., Louis Navellier and many more)……!!!!

Could we double or tripple our trading account in short period of time?

Yes, it IS quite doable!!!!

See the chain of other GLD Dec 2009 contract strike prices to the left and calculate the profit potential at the buy point prices of different strike price levels for GLD Dec 2009 put options contract in 12-06-09, 3.32 PM post.

If some trader was conservative and closed his or her postion every day or next day, then still the return of the profit exceeded over 300% due to my Gold Market Forecast. See the examples below.

Then we look at more conservatively with GLD Jan 2010 Puts options

and another day on 12-11-09

If one runs the number and do the calculation, it is easily determined that without trading every day and on alternate days, one hypothetically would have profited over 300% and still have the sanity.

GLD Jan 2010 Put Options Chain (above)

(Click on the charts to enlarge)

Read Stock Markets Outlook below……….

THE MOST ACCURATE FORECASTING OF FINANCIAL MARKETS

http://trade-in-harmony.blogspot.com/

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