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Monday, February 27, 2012

Short gold? Larry Edelson says he was wrong short term

The hardest thing for investors to do is to go through the roller coaster ride of a bull market.  Bull markets often come with sharp and steep corrections and you just have to hang on tight and enjoy the ride.

One thing I have learned not to do is attempt to "short" a bull market because human greed can take it higher than anyone can imagine.  In the case of gold and silver, no one knows when the big move will happen and my gut is saying sooner than later. 

Signs of a bubble? Once your hairdresser, taxi cab driver, co-workers, friends, and relatives start BUYING gold (not just talking about it!), thats when I plan on trimming and getting out.  I hope my own greed will not get in the way of making me a lot of money when all is said and done.

Lets get back to the topic of "shorting" gold.  I am not a big fan of Larry Edelson of Uncommon Wisdom however, I do follow his work just to see what other investors are doing.  Larry recently admits that he was wrong "short" term on his call on "shorting" gold (I am not a subscriber but he has noted in past blogs he put on short positions on gold and silver).    http://www.uncommonwisdomdaily.com/are-we-there-yet-13817

But I give Larry thumbs up for admiting he has been wrong short term.  No one can be right 100% of the time not even Warren Buffet!

For me, the better strategy in a money printing environment is to take profits during periods of excessive buying and let the rest of your gold and silver investments ride .  That said, you may miss big profits  by trying to "time" the market (it happened to me recently where I sold a producer for a 30% + gain and the stock kept moving - by the way, I ended up buying it back again 4% higher...but now, its up another 6% as I blog; better to admit when you are wrong sooner than later usually works!)

I believe shorting a bull market can wipe out your profits pretty quickly.  Buy the dips, sell the rips, easier said than done.








Cheers,

Millionaireby33

Subscribe to my Millionaire by 33 stock alert service and follow all stocks that I buy and sell. I will send you an email alert immediately after I buy or sell. Once you subscribe, I will also send you a list of all stocks that I currently own and what price I paid. Subscription cost is $500 US dollars per year. Sorry, there are no refunds for the first year but of course, you can cancel anytime after. Happy Investing!

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