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-OT- follow up, Bank of England going to sell tons of gold, and there are fears other European countries may follow. Gold went "over the cliff" on the news. Gold stocks down around 15%. ABX still up app. 15% from original buy. Latest Homestake buy stopped out at 5.6% loss. Lesson, and why I am posting this: Because of excessive trading, and the associated costs, what originally would have been a decent profit, even after todays bearish news, turned into a basically break-even or very slight profit on the accumulated gold trades- [not to mention the time spent]. Those bid ask spreads take a bite every round trip plus and to a lesser extent the commissions all add up. Trading can be OK, but overtrading only helps companies like NITE and the specialists. The chart still looks OK, on HM, ABX, as they were extended, but re: HM, will not take the chance of a small loss turning into a potentially large loss-especially on a company not even in the same league as ABX quality wise. The only saving grace was that the original ABX sale was to make room for NITE which has been stellar if volatile. Mike |
