Trading GOLD on FX-trading platform or market, is NOT SAME as trading one currency (EUR/USD, GBP/USD, USD/JPY).
 
It's a little bit more SIMPLE.
 
That is good for you!
 
Why?
 
Because, we can make some comparison with free market of gold. Gold is a metal, people like it, industry like it, investors like it. At this moment, we have GLOBAL financial crisis, or at least in Europe we have it!

There is practically no one investing in real estate, stocks are falling from the sky, deposits in banks are LOW.
 
Where should we invest our money? Where should or could invest money Asia, South America, India?
 
There are two or three currencies to invest to, but CHF for example was so getting so strong, that the Swiss National Bank lift the price of EUR/CHF to 1.2. Now it is not so effecitve to invest in this currency.
 
OK, here we have GOLD. We know, that this is a great way to invest. So we buy gold. The price is going to the sky. For the last 3 years, the price was going up in a nice manner. On the magical value of 1.900 $ for one ounce, the price made a correction. 21 % if we are counting!?
 
If you would check on the internet for articles about production cost for 1 ounce of gold, you will find, that this price is ~1.000 $ for ounce. 


AHA, THERE IS OUR RESISTENT POINT!
 
I have made a LONG position with stop under this limit line of 1.000 $. It's the same thinking like with buying gold on free market.
Now I'm waiting for gold to climb up again, because the financial crisis is not over in EU and there fore is not over in global market.
 
In my opinion, gold is the safest investment in these days.
 
Money management:
My risk is 700$ per ounce (current price is ~1.700 $ and to drop to 1.000 $ is 700 $).

This means, that if the trade is going to be sold out at 1.000 $ per ounce, I'll lost 41 % of value.
But, according to global economy, it is more likely to rise.
 
If it rises for 100 $, I'll make 5,88 % on ma Balance.
If it rises for 200 $, I'll make 10,76 % on my Balance.
 
This means, the price DOES NOT need to exceed her top level of 1,920 $ per ounce. It can stay bellow.
 
Now, for all those, who does not agree with this GOLD OPPORTUNITY, I have 4 questions:

- What do you thing, that BUYERS OF GOLD EXPECT to happen with price of gold? - Do you think, that they will sell if price of gold drops to 1.500 $ per ounce?

- Do you think, that they will sell if price drops to 1.300 $ per ounce?

- Who are BIG buyers of gold?
 


Knowing this, I have another question:
Do you think they are willing to make loss?
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