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Allied Nevada Gold Corp ANV



NYSEAM:ANV - Post by User

Comment by goldguy007on Mar 08, 2015 11:03am
220 Views
Post# 23501073

RE:RE:RE:question for goldguy

RE:RE:RE:question for goldguygoodday

Re controlling risk, I prefer to hedge my portfolio by shorting the GDX ETF against my aggregate long producers and short GDXJ against my aggregate juniors.

Most recently I started putting on the hedge on last Thursday because gold was weak going into the employment report.

So I was about 75% hedged Thursday and added more hedge on Friday morning.

I usually scale into and out of my hedge positions.

At the money or slightly in the money put options (On GDX or GDXJ or individual stocks) can also be used to control risk.

However, if I were long only one or two stocks I would control risk by reducing exposure at key points using stop loss orders.

If a trader is long gold bullion or coins they can hedge risk by shorting GLD or Comex gold futures.

I am currently long gold bullion and short Comex gold futures to hedge risk there .

As far as money management goes, I would suggest that it is better to be a conservative speculator than to hope that a trade will bail you out of past mistakes.

I would avoid speculating until I had sufficient funds to be diversified in a professional way.

Investing and intelligent speculating is a marathon event, not a short term sprint.

It is better to get rich slowly in a prudent manner than to "strike out" by reckless gambling.

I believe that the PM sector offers great value, at current prices, but you have to remain solvent to participate in the coming bull cycle.

There is nothing worse for a trader than to be right about a market trend and not to participate due to personal ineptness.

 

Re ANV and any bankruptcy proceedings in the future, I don't know how that would play out.

Funds would probably be tied up for some time, but shareholders would probably eventually get some payback.

Good luck,

goldguy

 

 

 

 

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