its a STORY #2: "IT'S A BULL MARKET!"
In the last three weeks, a friend of mine has been trading heavily...
He had owned gold, but then he sold it. Next, he sold short. Then he closed out that position and bought more gold. He then sold it. And now he's short gold again, though he believes in gold for the long run and wants to go long again.
Confused yet? If you're not, he sure seems to be.
He comes up with sound explanation each week for the buying and selling. But I just can't believe it. "It's a bull market," I tell him every time. What I mean by that phrase comes from a classic investment book, Reminiscences of A Stock Operator:
"The customers used to go into Old Turkey's office and tell him what some friend of a friend had advised them to do in a certain stock. But whether the tip they had was to buy or sell, the old chap's answer was always the same.
The customer would finish the tale of his perplexity and then ask: 'What do you think I ought to do?'
Old Turkey would cock his head to one side, contemplate his fellow customer with a fatherly smile, and finally he would say very impressively, 'You know, it's a bull market!'
I think it was a long step forward in my trading education when I realized at last that when Old Turkey kept on telling the other customers, 'Well you know this is a bull market!' he really meant to tell them that the big money was not in the individual fluctuations but in the main movements -- that is... in sizing up the entire market and its trend.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It was never my thinking that made the big money for me. It always was my sitting. "
It's a bull market in gold, my friend.
Sure we will have big movements up and down. But (using my best Old Turkey voice here) it's a bull market!