There has been a lot of talk about Gold recently, and it apparent rebound from the low levels of $1,150, which it hit most recently in the first week of December. Since that time, we have seen a $150 rally to breach $1,300 for the first time since August 2014.
Gold is still considered to be a currency – albeit an emotional one. Traders tend to view it as being the ultimate safe haven… a market which attracts money in times of turmoil. If people are nervous about the equity markets, they turn to gold. If people are worried about the bond market, they turn to gold. If people are concerned about the commodity sector, they turn to gold. If inflation rears its head, traders turn to gold. If deflation occurs instead, they turn to gold.
This approach has seen it become quite the exciting asset to trade. Money flowing in, and then quickly back out again, leading to (what most commentators call) excessive volatility. What must be realised is that risk is a necessary part of trading and it needs to be embraced rather than feared.
With each course which the Academy of Financial Trading provides, we first focus on the risk element. It is by helping your mitigate those risks in as much as is possible, which will lead to more confident trading. Without risk, there can be no reward.
When you learn to trade with us, you first learn to manage your risk at an appropriate level. This is something which we are already too familiar with – perhaps we simply need to be reminded of it. By taking care of the downside (the risk), the upside (the profit) will take care of itself.