Gold mining trade - The importance of cutting losses
Here’s a chart view of my attempt at a trade involving gold mining stocks, via the DSPML WGF:
As you can see, I didn’t quite catch the bottom while getting in, and didn’t quite catch the top while getting out. Factor in entry & exit loads totaling 3.25% and yet, my net loss was only 4.8%! I say ‘only’ because gold mining stocks self-destructed over the past week - as did gold - and the fund is down a further 15% after I got out.
MotS: Cut your losses!
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