Gold Update: How To Be "Right" When You Are "Wrong"!

Does that headline make you go "HUH"? How can you be right when you are wrong? Simple. I was wrong in my analysis as to what was to happen yet I was right because I went SHORT on Gold based on my "wrong" analysis. Got that? Actually, this happens many times to me and I'm very happy to admit that. You see, there's a method to that madness. Let me explain...

I've been LONG Gold since Nov of last year. In fact, I already closed one long trade for good profits. And I still have another trade STILL LONG and still open. Yet, as you might see in the 1HR chart on the left side, I went SHORT on Gold just recently. Why did I do that? First, yes, you may look at that and say its a hedge but that's just perception. It is technically a hedge but the way I view these trades and in fact, ALL trades I take and send out, I treat each as SEPARATE trades each as its own trade. And I manage each trade on its own with no regards to the hedge.

With that said, the reason I took the short trade is because my analysis on the overall trend move higher places it in a correction at this time but it should still continue higher after this correction is done. But when analyzing this correction, I identified a good SHORTING opportunity and took the trade. But back to my headline about being "right" yet being "wrong"...

Here's one my analysis that I made and tweeted out where I took the SHORT trade: As you can see on the date on that chart that I tweeted this out 2 days ago and here's what I said:

"Sell GOLD SHORT TERM trade. This trade for the wave y down. My LONG trade is still in play so this is a hedge but is a trade on its own same as the active LONG trade that is +650 in profit."

So because of that analysis, which of course now we can see I was correct, I went SHORT. BUT, here is what I just tweeted yesterday as an update on this Gold correction: You can see the date on that chart was yesterday. I was projecting a complex flat with an ending triangle which is a very common wave 4 corrective structure. Well......as you can tell by the current chart above that this was WRONG! But still, that "WRONG" projection kept me in the SHORT trade and here we are....SHORT and in profit.....

This happens more often than you know but it works well...IF you are willing to do the work! You see, when I analyze charts and possible trades, I always look at things several ways and look at ALTERNATIVE possibilities. And when those differing scenarios agree on the direction despite being different in their projections, then I have much more confidence in the trade I am taking.

Hope this helps and inspires...

For more info on Gold and other charts, just PM me.