richard russell on gold, page-5

Irjones,

RR is a bit like everyone else, he is wrong as much a he is right.
People with tunnel vision are, as in life but especially concerning the market very dangerous.
You also have to be aware that his projections are aimed at passive long term investment not trading.
What is of value in his articles is an undertanding of the potential behaviour of gold. It is very much a beast of long term momentum.

You should set your strategy with this in mind.

FA for your watchlist.
My watchlist for gold is CRS,BSG,BDG and roughy CTO.

Then I say to myself gold stocks are for medium term trading NOT investing. (same goes for but to a lesser extent oil and resource stocks.)

So set up my strategy to try to catch a major movement in gold.
Entry by TA . quite simple. You do not have to hold all the time, this is where I disagree with RR.
If gold is to go for major run you will have plenty of time to get on board.
Have been jumping in and out of a few selected gold stocks now for months and have made no real profits but am prepared to do this as the next run could be the one and not the continual false starts we have been experiencing in the last year or so.

I set up a fairly broad floating stop loss strategy, I think your stop loss strategy is very important with momentum type stocks (which gold stocks are)
I do this to minimise the chance of finding myself in the situation of selling on support into a major rally.
(This can play negative games with your mind)

At the moment I hold only one gold stock, 2 weeks ago I held 4.
To hold gold stocks as 'insurance' as RR says is very much for passive long long long long term investor.

Be aware of what stocks are worth buying then let your strategy make the money for you.

Sorry to go on about strategy guys.