We have been bullish on the precious metal gold and several mining names for a long time, as regular readers of Kamich's Korner will know. In the past few weeks, I have received a number of emails from readers worrying about and second guessing the rally. They turn on their computer or tablet and they see gold going down $20, $30 or more in the morning and their hands sweat. They are nervous and are ready to jump ship.
Many years ago, probably in the mid-1990s, I remember reading an article by Robert Prechter, CMT -- a colleague and dear friend in the business. He was involved in a number of trading contests to show the power of using the Elliott Wave Principle. He traded options and produced some stunning results. His article was less about the approach researched by Ralph Nelson Elliott in the 1930s and more about how hard it is to mentally and emotionally stay with a big (and profitable) position.
In my long career in the industry, I have only met a few individuals who have successfully walked away with huge gains. While Bob has his admirers, he has also been criticized by the media and fundamentally oriented analysts. The reason I bring up this article is that it is really hard to stay with a long-term position.