I wish I hadn't stopped out of those positions now with the market back up 59 points at 2.21 pm. Yesterday, I'd looked at the intraday charts of the European indices which had a big drop and a retracement on Friday so I'd assumed that was in response to the downgrades. If I'd checked more carefully I'd have seen that the S&P made the announcements after market. Regardless, my thoughts were correct, that the news would be treated as unimportant and our reaction yesterday was misjudged.
I still have long positions in IAU and IPL and they're going ok.
I've just had lunch with a friend who comes from a global macro trading background. He had a great year in 2011, making 350% on his money and it was all the more impressive because he was trading on his personal account and not for a company. Strategically, I've been feeling that I overtrade and don't put enough money on the trades that I really like. His approach is to wait for the trades to line up and then to risk a fair bit on each but with the prospect of large risk/reward ratios. His risk appetite is larger than mine but this sort of trading is still something that I want to move towards although I'd do it in my own style. Funnily enough, my friend's main issue is that he gets bored waiting for the right trades to come along and that's not something I'm worried about anymore, being 10 years older and happier with a quiet life.
In that respect, I'm comfortable to just have two positions and I've added to the size in IAU with more stock at 118. I've got a stop at 112 and I think it could easily make 140 so it stacks up. Intrepid is a copper/gold junior with a very large resource base to mine and with both metals charting well, it's a nice play on them.
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