What is expected from Gold?…….
During early April 2008 Gold rallied to $1033 and all traders thought that Gold may not be available any more and bought heavily during the first drop to $950 and averaged during next drop to $900 and now find it is available plenty around $850.This is how operators create the market sentiments and act against the traders.
The rise takes longer time but the drop happens in a shorter duration.The slow firming up is to make the traders to feel that is the high and can short, later they rise quickly for them to do short covering and traders change their mind set to earn back the lost money by taking buy position during slide to sell by next rise.But the operators purposely don’t rise and drop more for the traders to lose again.
Traders need to understand that operators create market sentiments using various media and channels and once the traders change the mind set and get convinced that all the market rise/fall because of weak US economic conditions,surprise to see the reverse in all markets and get trapped.
Day in and day out the operators continue to do the same and traders also follow their attributes and become victim every time.
As long as the herd mentality and market fear are there with the traders due to over trading, operators continue to trap them and earn their profits easily every time.
Regards
Dr.Sivaraman
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