Wednesday, April 2, 2008

Added commodities again

Recently I sold GDX, DBA and DBC before the commodities sold off, which was a great move. I kept my gain. And I added on the first sell off on March 20 and March 24th, which was again a great move. But I didn't sell, and yesterday it fell below the price I paid. I added DGP and DBP again yesterday.
Lessons learned:
  1. When you luckily picked a bottom, and your positions showed a profit (like on March 27th), 10% for my SLV and DBP, should sell.
  2. Since I thought this rally would be sold. I was expecting GLD to test just below $1000, like $980, I was wrong, it didn't even pass $950.
  3. Now I added more, I have too big exposure to gold, silver and other commodities, I need to reduce the positions on rally.
  4. Long term, still like gold and silver,but with recent vicious sell offs, my thinking is not as strong as before, so reduce position is a good idea.
  5. Think DBA is still the best, even with Barron's article, it showed strength, compared to precious metals.

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