[Ed. Note: As it relates to the fraud-riddled, HSBC custodian GLD ETF; In our opinion the way you manage your risk is by getting out and purchasing PHYSICAL, post haste.]
from Gold Silver Worlds:
Now that GLD has taken off like a rocket the last few days the question arises “how does one manage the risks?”. That being the risks of chasing a stock and sitting through a pullback right after one buys?
Ever get caught up in the moment only to see shortly thereafter the stock pulls back after you are in? Isn’t it at those times you wished you had just remained calm, cool and collected to enable you to get a better fill?
That’s called chasing a bus here at All About Trends and every day we hammer the point home — do NOT chase buses, but instead wait for stocks to come to you via orderly pullbacks where you are buying a lower, risk adverse entry point.
One way that you can start to apply that type of thinking is to implement a disciplined method to the madness vs. getting caught up in the moment. The way we do that is via chart and employ the use of basic chart reading skills.