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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (52765)	11/12/2007 8:15:42 PM
From: tyc:>	Respond to of 78403

>>I'm really having trouble deciding on the direction of the loonie here.. Funny you should say that. I was just thinking.... I'm just reading a book on trend following. Allow me to quote a few lines: "Richard Donchian was the undisputed father of trend following ....... In 1960 Donchian reduced this philosophy to what he called his "weekly trading rule". The rule was brutally utilitarian: "..... When the price breaks below the low of the previous two weeks, liquidate your long position and sell short..." Another trend following rule I read in the book was: "Follow your trading rules.... DO NOT LET JUDGMENT stand in your way". The Canadian dollar fell over 2% today to well under the low of the last two weeks. Moreover >2% in one day spells volatility and volatility (plus leverage ) could mean big profits. Are you holding Canadian dollars?... perhaps they are the largest holding in your PF. Is that prudent when we MIGHT have seen the start of a new trend? (If they had been long US$ , their Canadian value would have increased more than 2%). Now that's just talking about the dollar, without leverage. If this is interesting I could expand into leverage possibiities, even within an RRSP. Of course if a new trend does NOT develop, you know what to do.... perhaps not too much risk of significant loss at these levels?