Time Your Buying And Selling To Make Profit
On my last gold investment update (Update 4), I have shown that the price of gold is coming down purely based on the above chart analysis.
Today, the price is around US$825 level. Price has dropped almost US$50.
You may ask now, when is the right time to buy? Stay posted and keep reading my blog. I will update you in the next instalment when I see the right timing. I still believe the price can drop lower this month, despite the news saying that the coming Chinese New Year will increase the demand in gold and raise price up. Lately I have some discussions with some people in the unit trust industry on investment. Generally, the view of the unit trust industry is still on performing regular dollar cost averaging. They call for dollar cost averaging buying on a monthly basis irregardless of the price. My opinion is you should buy only when the time is right. The right time is when the price is low.
To understand when the price is already at the lowest, we need to study the charts. Most of the unit trust consultants do not study the charts the way I study it. Without the knowledge of studying charts, they brushed away technical chart analysis saying that it is impossible to know the top and bottom of a market cycle.
Coming soon, a 'Gold Investment Secrets' book from Carson Ding
I am in the midst of compiling a book on my gold investment techniques. The information in the book will discuss in detail the things I mentioned on this blog.
As Joker said in the movie Dark Knight, "If it is worth doing, it is worth doing for money." (However, I am no joker. Haha-ha-ha.) Yes, you will be able to buy the book and learn how I accurately timed the market on 2 January 2009.
As Joker said in the movie Dark Knight, "If it is worth doing, it is worth doing for money." (However, I am no joker. Haha-ha-ha.) Yes, you will be able to buy the book and learn how I accurately timed the market on 2 January 2009.
You can see in the chart above that 2009 opened with the gold price at the peak and thereafter declines to the current level. I sold my gold investment on 2 January 2009 and made an 11.9% profit within 66 days.
And for the first time, you will be able to discover some techniques never seen before. What you see here on the blog is only a brief discussion on charts. There are other ways of analysing charts including timing that is not revealed here.
From my chart analysis experience, I have learned that we should ignore the news that we read on the media. We should ignore the so called views from the 'experts' that often appear on interviews on the TV. Or when the 'experts' give their views and the newspaper prints a one-liner quote - for example, you may read "In 2009, the average price of gold will be US$910."
What does that mean to you? Does that you mean you should now rush out to buy gold at US$825 level and hope to sell at US$910? Hoping and praying do not make you money. Hoping and praying that the market will move in your direction? The word 'average' means that price can go up high and reach a very low, low. And in averaging out, you get a price of US$910. Why shortchange your profit when you could buy at a low, low price and sell at the top?
Don't listen to the media. A wiser choice will be to do your own analysis and buy based on your analysis.
By the way, would you be interested in the book? Do you want to read it in ebook or hardcopy?
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12 comments:
seems like could have bought at 825 and profit take at 875, could that be correct ?
http://klsmi.com/gold14012009.png
for those who don't know other techniques, DCA is the least they can do with ease. for those who know other better techniques, they shouldn't forget about DCA neither. should keep DCA until other method's return rate is higher and safer at the same time. I still keep my DCA as my safety net while I fool around with all kind of techniques out there ...
i prefer attending seminar and see u in action, if without that, ebook is fine too :D After reading ebook and its a great book, then I buy hard copy to keep.
Michael,
Buying at US$825 would make you lose. At the time I am writing this. The price is at US$809.
Even if you buy at 825 and sell at 875, that's only about 6% difference. Don't forget that you have to pay the difference in buying and selling spread. Public Bank's price difference is already over 4%.
I believe my coming book will explain things quite sufficiently on analysing the right timing to buy and sell. I have reserved a lot of the knowledge to be put into the book instead of posting it here on my blog. (Not profitable for me to do so here. Hehe.)
In my book, I have also allocated a small part on Dollar Cost Averaging (DCA). It will explain why you may still lose money in the short term (1 year).
Investing is to make money. If it loses money, we should find a better way to invest.
Thanks for these great articles about gold investment, Carson.
I have been investing in gold since 2007. The way you use Elliot wave theory coupled with tetrahedron theory to analyse the gold price movement is very impressive.
Hope can learn more from you.
Cheers
Thanks for your compliment, ongkl.
Please help me tell your friends about my blog. I would like to have more readers reading my blog. :-)
So, have you made much profit in gold investment? Where do you invest?
Hi Carson,
If you need historical chart of gold, you can go to http://www.timingcharts.com/index.php
I found this website pretty useful and have been using it for years. It provides 15 years or more historical chart of most commodities, precious metals, currencies and indexes futures. You can also get the movement of speculators, large and commercial traders from the chart too.
While I am learning the tetrahedron theory from you, maybe you can test the theory on gold price movement for years before 2007 with the help of this website.
I am investing in gold through several vehicles in Singapore. One of them is UOB gold savings accont which is quite similar to Public Bank's. But the price difference between buying & selling is much lower, i.e. S$0.10 per gram only. Administrative charge is 0.12g per month or 0.25% p.a. on the highest balance per month, whichever is higher, and is only charged in the end of each year: http://www.uob.com.sg/personal/investments/treasury/precious_metals.html
I am also writing gold options and trading spot gold through a private bank here.
Cheers
Hello ongkl,
Thanks for sharing the information on timingcharts.com.
Let's learn from each other.
Hi Carson
heard that you're writing a book on gold investing
I am interested in reading any materials that can help me make money.
But most books I read are too difficult to understand. Lots of fundamental, technical and theories.I don't have any background on those subjects.
Are there lots of those stuff in your book? Please make it simple for the ordinary folks like us. OK
analysis and theory
Hi Carson,
Heard you're writing a book on gold investing.
I'm interested in any books that can make me richer, but most books are full of technical analysis, fundamentals and theories that I don't really understand.I'm still learning.
So, how about your book full of analysis too? Please make it simple so that the average Malaysian understand OK.
double request??? Ha Ha
wow really ? moving from 825 to 875 is not enough ? seems like quite a high overhead investment for single spread.
cann't wait for the downside of DCA other than knowledge. Hope you make it public one day too ...
yea, pls publish your book fast, we all need to earn more at this time of situation.
Caryn, Caryn... I truly understand your eagerness to make money. Haha. That's why I am writing a book on gold investment. To help people understand how to invest profitably.
If you have been able to understand the articles on gold investment in this blog, you should do fine when you get the book. I will try to make it as easy to understand as possible to those without the technical knowledge.
So far, a friend who has no knowledge on technical chart analysis has been able to understand all the charts that I have included in the book.
I make a promise here, if you need further clarification upon reading the book, you are always welcome to email me.
Michael,
Thanks for your support too. I will try my best to complete my book as soon as I can. However, I don't want to produce a half-cooked book that has no profound learning in it.
For your information, the book is also a compilation of current charts as it is happening and I will show why I buy and sell at certain points. It will be more detail compares to what is on the blog here.
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