{"id":13862,"date":"2019-06-08T07:30:31","date_gmt":"2019-06-08T11:30:31","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=13862"},"modified":"2019-06-08T07:30:31","modified_gmt":"2019-06-08T11:30:31","slug":"i-was-right-about-gold","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/i-was-right-about-gold\/","title":{"rendered":"I Was Right About Gold…"},"content":{"rendered":"

Editor’s note: <\/strong>Today, we’re doing something a bit different.<\/p>\n

Recently, Jeff’s subscribers booked a big win in the gold sector. And Jeff had the idea of showing his Market Minute<\/em> readers exactly how they pulled it off.<\/p>\n

Read on to see how…<\/p>\n

\n

As you might have heard, we recently launched a new trading service: Jeff Clark Trader<\/em><\/a>.<\/p>\n

It’s designed for beginner option traders. Folks who want a simple way to trade. That’s why, in Jeff Clark Trader<\/em>, we only trade three stocks. That’s it.<\/p>\n

Why? Because we want folks to learn the mechanics of options trading, without getting lost in the weeds of the countless stocks available to trade.<\/p>\n

The best way to develop those skills is with practice and repetition. So today, I’m going to recap our very first trade in Jeff Clark Trader<\/em>… And walk you through exactly how we booked a 117% gain on GDX in just over three weeks.<\/p>\n

But before we get to that, let’s look at the tools I used to identify the winning trade…  <\/p>\n

    \n
  1. \n

    GDX is the VanEck Vectors Gold Miners exchange-traded fund (ETF). It tracks the performance of companies in the gold mining industry.<\/p>\n<\/li>\n

  2. \n

    The GDX\/Gold Ratio. This ratio is the best way to spot turning points in the gold sector (read a more in-depth explanation right here<\/a>).<\/p>\n<\/li>\n

  3. \n

    The 9-day exponential moving average (EMA). This is simply the average price the stock has traded over the previous nine trading days. It’s the defining line for the short-term momentum of a stock or index.<\/p>\n<\/li>\n<\/ol>\n

    (You can find these tools on any charting site. My favorite site, which I use to create charts for all my services, is StockCharts<\/a>.)<\/p>\n

    Now, let’s look at how we used these tools for a quick 117% gain.<\/p>\n

    Take a look at the GDX\/Gold Ratio chart…<\/p>\n

    \"\"<\/p>\n

    The GDX\/Gold ratio broke above its 9-day EMA on May 8 (the blue arrow above). That’s a bullish sign.<\/p>\n

    But I didn’t rush into the trade. Instead, I patiently waited for a confirmation. Here’s why…<\/p>\n

    I wanted to see the GDX\/Gold ratio continue<\/em> trading<\/em> above its 9-day EMA, and ensure the bullish momentum continued, before I recommended a trade. And it did.<\/p>\n

    Then on May 16 (the red arrow), we got a great opportunity…<\/p>\n

    It pulled back to its 9-day EMA, which was acting as support. So, I recommended that my subscribers buy GDX July 19 $21 call options for $0.62.<\/p>\n

    Take a look at our entry point (the red arrow)…<\/p>\n

    \"\"<\/p>\n

    As you can see, we were a little early. We had to sit through two weeks of choppy, back-and-forth action.<\/p>\n

    But then… gold stocks exploded higher on Friday, May 31. And that rally continued.<\/p>\n

    On June 3, I decided to sell half of the position. Here’s why…<\/p>\n

    The main purpose of trading options rather than the underlying stock is to REDUCE RISK.<\/p>\n

    This is where a lot of novice traders get into trouble. They use options as leverage, and go overboard with their position. They buy too many lottery tickets, thinking they’ll strike it rich overnight.<\/p>\n

    And if the trade goes against them, they can take a huge loss.<\/p>\n

    So, option traders should always be looking for ways to take money off the table<\/u> and reduce or eliminate the possibility of taking a loss on a trade<\/u>.<\/p>\n

    That’s why, no matter how good a position looks, I ALWAYS trim profits once I’ve doubled my money on a trade.<\/p>\n

    So I did. I recommended to sell half of the GDX July 19 $21 calls for $1.35, and we recorded a 117% gain.<\/p>\n\n\n\n
    \n

    [If you’d like to see Jeff’s full track record – wins and losses – click here<\/a>.]<\/p>\n<\/tr>\n<\/tbody>\n<\/table>\n

    By selling half the GDX calls for a 117% gain, we put our original investment back in our pocket. And eliminated the possibility of taking a loss on the trade.<\/p>\n

    The GDX trade continues… I’ll let you know how it plays out.<\/p>\n

    Best regards and good trading,<\/p>\n

    <\/p>\n

    Jeff Clark<\/p>\n

    P.S.<\/strong> I hope you enjoyed this quick trade recap. Let me know if you’d like to see more, along with any other thoughts, by emailing feedback@jeffclarktrader.com<\/a>.<\/p>\n

    And, if you’re interested in learning more about options and trading with me, check out Jeff Clark Trader<\/em><\/a>. It’s only $19 for a whole year – a no-brainer.<\/p>\n

    I’ll write to you again on Monday. Have a great weekend.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Let me walk you through a recent big win…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-13862","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=13862"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13862\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=13862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=13862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=13862"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=13862"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=13862"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=13862"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=13862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}