1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Start trading Gold ?

Discussion in 'Making Money' started by MoneyMafia, Jan 21, 2009.

  1. MoneyMafia

    MoneyMafia Regular Member

    Joined:
    Dec 2, 2007
    Messages:
    291
    Likes Received:
    310
    I see the gold price is rising.. I'm thinking to buy some using forex brokers..
    Anyone here trades gold ? I'd like some tips or enjoy a chat.

    Ideas ?!
     
  2. mockba

    mockba Junior Member

    Joined:
    Nov 15, 2008
    Messages:
    170
    Likes Received:
    51
    Gender:
    Male
    Occupation:
    business development, local search domination
    Location:
    The Dark Side
    i do that part time. it's expected to go down in February and steadily climb back by late April then fall even more throughout summer as consumer confidence slowly returns.

    so yeah, be careful...it's a two way street.
     
  3. flow

    flow Regular Member

    Joined:
    Oct 3, 2008
    Messages:
    356
    Likes Received:
    111
    Seems like such an expensive trade... I use to use e-gold a lot so I'd watch the kitco charts all the time...

    I mean, how long are you talking about holding on to the gold? Seems like ROI isn't high enough short term... looking at long term charts like 5 year... doesn't look so great to me but then again what do I know about it?

    http://www.kitco.com/charts/livegold.html
     
  4. mockba

    mockba Junior Member

    Joined:
    Nov 15, 2008
    Messages:
    170
    Likes Received:
    51
    Gender:
    Male
    Occupation:
    business development, local search domination
    Location:
    The Dark Side
    the big climb happened last year when markets went to sh*t. consumer confidence falls, everyone buys gold, price goes up, you cash in :cool:
     
  5. MoneyMafia

    MoneyMafia Regular Member

    Joined:
    Dec 2, 2007
    Messages:
    291
    Likes Received:
    310
    Yeah .. Used E-gold also .. Made some nice profits in 2007-2008.

    However I'm new to this and Id like someone to help me with math...

    Let's say I trade Gold against USD with a 200:1 leverage
    I have to pay $500 for each position right ?
    Who can help with some mats.. If let's say I spend $5000 buying at $850/ounce and selling it at $900/ounce
     
  6. flow

    flow Regular Member

    Joined:
    Oct 3, 2008
    Messages:
    356
    Likes Received:
    111
    <$300 profit on $5k investment. 6% ROI sucks in my book. Spend 5k in IM! I'd buy an established site with that cash if I didn't know how else to spend it.
     
  7. oceanman

    oceanman BANNED BANNED

    Joined:
    Dec 30, 2008
    Messages:
    285
    Likes Received:
    168
    haha...how do u know that ??

    but anyway..i rather trade of Forex....gold prices fluctate very fast...
     
  8. britevalue

    britevalue Registered Member

    Joined:
    Oct 25, 2008
    Messages:
    88
    Likes Received:
    126
    I'm rather playing in stocks
    forex or gold has huge influence
    and I've lost a lot from those
    I think stocks are growing fast now
     
  9. misterajc

    misterajc Registered Member

    Joined:
    Aug 19, 2008
    Messages:
    71
    Likes Received:
    28
    Best tip. Don't invest in gold. In 2004 real estate prices were rising. That did not mean it was a good time to buy real estate.

    Next best tip. Learn about the gold market. Study the top gold producing nations and learn what drives their economies - last I heard China and South Africa were tied for top place. Study the other factors that influence the gold market - interest rates, inflation, consumer confidence, other investment opportunities - and learn the factors that influence them. Start running regression models to learn how these factors really influence the price of gold, and also economic models to predict the future of these factors. Does that sound like too much work? That's what the people who you will be competing with are doing. Don't expect to beat them till you are at least as good as they are. You may get lucky for a year or two, but nobody stays lucky for ever.
     
  10. misterajc

    misterajc Registered Member

    Joined:
    Aug 19, 2008
    Messages:
    71
    Likes Received:
    28
    Sounds like a short cut to bankruptcy to me. Even a medium change in the gold market could result in massive margin calls, and all the world's markets are very volatile at the moment.
     
  11. blackhat50

    blackhat50 Regular Member

    Joined:
    Oct 22, 2008
    Messages:
    336
    Likes Received:
    103
    I've been trading stocks since 2004, This would be a good time to short GOLD. it was a good idea to go long when it was at 700. look at the chart.

    i wouldn't advise trading 1:200 leverage though unless you have a huge bankroll.


    Let's be honest, It's big bank vs little bank. (if you don't the game google is your friend). WE are always the little bank. Now go invest =)