Lets not hide the truth: today was an amazingly boring day.
Commodities moved mainly sideways except when gold surged this morning.
I entered JNUG excepting GDXJ to outperform GDX, which ended
up not being the case. I’m not really satisfied of my trading day because of
that. Still, I made a little more than 2% return which is more than most GICs!
The difficult question I had to answer was if keeping JNUG
over the weekend was a good idea or not. It may be surprising, but I actually
think it can be a good idea to keep JNUD or NUGT over the weekend. My analysis
shows that gold should continue to rise Monday.
That being said, weird things can happen over a two days
period. That adds a layer of risk to your trade, because you can’t get out if
you need to. For that reason, I try to always exit all my positions before the end
of the trading day.
Of course, this applies when I’m on “day trading” mode. I
think a good trader needs to be versatile. In some markets swings are the most
profitable, in some others it’s day trading, and in some others it’s scalping.
It’s relative to the volatility and the velocity of the market in any giving
point in time.
On that note, I wish you a good weekend!