So I hadn't touched resources for over 18 months and then about a month ago, tired of watching my portfolio going sideways, I dabbled and even went against all my trading principles and dabbled in gold. Now the conundrum is whether to sell at my target which has nearly been reached or let it run with tight stop loss?
My exit strategy is always a trailing stop loss and I trade the price, I try not to get into fundamentals or reasons. The problem with the resources is that they bounce like a rubber ball so it can get tricky and easily stopped out
That's the thing.. how do you use a stop loss as these things have a spread of +/-10% a day from lows to highs..so its very difficult as it drops to like 100 and then in an hour bounces back to 110.. so you risk getting stopped out for nothing
here is a target for you - come up with your own trading system and stick to it. If you have to keep relying on the opinions of others as to when to get in and when to get out of a trade, you are going to lose money hand over fist. What are you going to do if one forumite tells you to stay long with a 50% profit target and another tells you that the run is over, take profit? Remember that their are buyers and sellers in the market - so by definition there are at least 2 parties with conflicting views. You absolutely need to have your own.