Well I'm paying a high price now with NUGT sitting at about $13, eating a chunk of my 85% profit YTD. It sounds pretty bad, but I'm still confident we will see gold heading way higher soon. I was expecting a pop this week, which didn't happened.
Some of my readers asked me if I got out at one point, mostly when NUGT hit $14. I didn't and I think many of them must be wondering why. To answer I will use a poker concept called being "pot committed".
Basically, there's a point where you invested so much in the pot that even if odds are not favourable you have no choice but to continue to play the hand. If you fold at that point your expected value for profit turns negative. I am pot comited right now with NUGT.
The good news however is that I don't see miners down at these levels for a long period of time. Matter of fact, I don't see gold at $1,200 for a long period of time, but higher.
I know that a lot of traders got caught in the same bull trap. Are you one of them? If you are, where do you see NUGT and gold heading?