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Message-ID: <3457CCBB.42C5F76E@xxxxxxxxxxxx>
Date: Wed, 29 Oct 1997 17:54:35 -0600
From: Robert Doeden <bdoeden@xxxxxxxxxxxx>
Reply-To: bdoeden@xxxxxxxxxxxx
Organization: MindSpring Enterprises, Inc
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To: Greatelto@xxxxxxx
Subject: Re: Wednesday's market action
References: <971029104742_396579238@xxxxxxxxxxxxxxxxxxxx>
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Re: my gold comment. I trade futures because it is a fast way to make a lot of
money. I've personally gone from very little to a lot by buying that which no
one wants. Tell me of something that most want less than gold. I can't think
of an investment that is further out of favor. So I buy a couple of contracts
and watch the action. If I'm wrong and have to sell I lose maybe $3,000 max.
These days my accounts go up or down 25-50,000 every day. So $3,000 doesn't
amount to much. But if my feel starts to look Ok I add some more contracts. On
a move back into the 330's I will make $15,000 on a small 10 lot position.
That is worth the risk. Sometimes I'm right, sometimes wrong. But I don't see
many sure things and you have to take a chance. I find that there is a lot less
risk buying that which no one wants than that which everyone wants because of
the obvious. The sentiment of those which want something badly can change on a
dime and then you are looking at air pockets. I don't believe in that momentum
bs where you buy something because its doubled and there will be another fool
around the corner. I do believe in looking for that which no one wants and then
waiting until it shows signs of life. My weakness is that I'm usually early and
that is why I start with a small position and add later.
By now I've put you to sleep so I'll quit.
Bob Doeden
Greatelto@xxxxxxx wrote:
> Bob Doeden wrote....
>
> >I hope no one is fooled by the action of the market today.
> It was completely programed by the financial powers who run
> this country and executed by CNBC.<
>
> You have got to be kidding!!
>
> > At the very least I'm going to wait to
> see if there is a test of the low. If I'm wrong and this
> keeps going I'll miss a few points but I would rather be
> safe than sorry.<
>
> Should be part of the normal course of events.
>
> >Saw a metals analyst from one of the major
> firms (maybe Morgan Stanley, not sure) who talked in favor
> of gold yesterday. He basically said the current price is
> below the average cost of production so there should be a
> spate of mergers among the producers and a shutdown of high
> cost mines which will reduce the supply<
>
> Why not buy a low cost producer? It should be noted that the Swiss now want
> to sell gold. Who is next?
>
> Jerry
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