How We Made Quick Profits Trading Gold

[Trading With Larry Benedict]( How We Made Quick Profits Trading Gold By Larry Benedict, editor, Trading With Larry Benedict Geopolitical uncertainty and anticipated rate cuts have caused gold to soar throughout 2024… From its February low, the SPDR Gold Shares ETF (GLD), which tracks the gold price, has rallied close to 27%. And the “gold bugs” are making ever higher and crazier predictions about how high the precious metal can go. But while they might be holding out for exponential gains, I’ve always traded gold a bit differently… Rather than wait for outsized moves, I prefer to trade gold for quick profits. We did that last month for members of my options advisory The Opportunistic Trader… In just five days, we pulled off a blended 29.5% gain – more than GLD has made all year. As I’ll show you today, the trick is to wait for the right setup. And you have to be nimble and bank your profits when you see them… Recommended Link [The Most Important Presentation in America Right Now]( [image]( “Most people won’t know what to do when their savings run out… Or when the stocks in their portfolios fall by half,” says Wall Street icon Louis Navellier. “It’s going to affect everything about our normal way of life: Our money, the value of our homes, our ability to retire.” When it makes landfall, it’s impact will be more violent and more severe than any financial crisis we’ve ever seen… [Click here for details.]( -- Repeatable Patterns After surging into April, GLD transitioned into a sideways pattern. Throughout that period, GLD traded in a narrow range between $210–230. Pay attention to a familiar pattern after GLD hit those short-term peaks in April, May, and July… SPDR Gold Shares ETF (GLD) [chart] Source: eSignal ([Click here to expand image]( As the chart shows, those peaks and reversals coincided with the Relative Strength Index (RSI), a momentum indicator, retracing from near overbought territory (upper gray dashed line). Then the failed breakout move in July reversed sharply. And that down move soon became overdone. So I wanted to set us up for any potential bounce… When a stock retraces sharply lower like this, bargain hunters often burst back into the market. That can cause a quick rally. Yet I was also watching two key technical indicators closely… - GLD had found support around the 50-day moving average (blue line). If that held, that would be a bullish signal. - The RSI was bullishly making a “V” (green circle) right around the 50% level – a key area of support. So on July 25, we bought a call option to capture a potential bounce. A call option enables you to profit from a stock’s up move while also putting a cap on losses. The most you can lose is the premium you paid for the option. And as the chart shows, we got our timing spot-on… Our entry corresponded with the short-term low. Take another look: SPDR Gold Shares ETF (GLD) [chart] Source: eSignal ([Click here to expand image]( With our position in good profit, we closed out half of it on July 30 (three trading sessions later) for a 21.2% gain. We kept half our position open to capture any further upside move. And that proved to be the right call… With our position in even further profit, we closed out the remaining half later the same day for a 37.9% gain. That equated to a blended 29.5% gain. Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. As always, we generated this return in such a short period by trading options. Options magnify both wins and losses. And because options have a finite life, time is always working against us. But this trade shows yet again the beauty of trading options. With the right setup, we brought in a handy profit in a matter of days. Happy Trading, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](