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TABLE: If you still have doubts about allocating a little of your portfolio into silver, these historic gold/silver ratios may make you think twice. Table courtesy of John F. Chown’s “A History of Money”
Today the gold/silver ratio stands at 67,98 – I hope to have your permission to round it to 1:68.
Now that Markowitz’ model of risk-free portfolio diversification has been proven as wrong as did the Black-Scholes option pricing formula I am more than inclined to seek my clues in centuries old relationships.
It can be safely said that markets either overshoot or undershoot, but are never in equilibrium (can any economist write a formula to scientifically prove my common sense assumption!?)
Take your own conclusions. This blog is for informational and entertainment purposes only. For precious advice email me.
DISCLOSURE: long bullion and adding.
FxBootcamp.com and FXstreet.com are celebrating its 40th edition of the popular live training event “Trade Non-Farm Payrolls Live” with a special contest!.
Click HERE: http://www.fxstreet.com/forum/showthread.php?t=52742
Do you want to know how to participate? OK, here’s the deal: just write a brief essay answering the following question: What I have learned from trading NFP live with FX Bootcamp? Yes, just that: post below this message a brief essay about what have you learned with Wayne. Deadline for your answers is September 7th, 2009 at 12.00 h. (08.00 h. EST).
After the deadline the jury, compounded by Wayne McDonell, Valeria Bednarik and FXWizard, will choose the three best essays and announce the winner.
Prizes will be as follows:
For the very best essay:
- 1 free pass to the International Traders Conference hosted by FXstreet October 14-16 2009 in Barcelona – Spain
- 2 free nights during the conference at the Hotel Barceló Atenea Mar.
For the second and third best essays:
- 1 free pass to the International Traders Conference hosted by FXstreet October 14-16 2009 in Barcelona – Spain
Good luck and happy pips! ![]()
First Few Postings:
Peter
Thank you Wayne, I hope you continue to have these live NFPs because I have learned something every time, even though I’ve only traded during a handful of them.
Best,
Paul
All the Best
Jonnie
I attended approx. 15 NFP. and I have never taken a trade during these sessions
Wayne have explained capital preservation so good so many times during these sessions
Which I find very good because that is the most importend you can do.
I also like Wayne’s way to explain the fundies and his enormus knowledge about the fundies.
If people will pay more attention to avoid loose money instead of how much money they can make, they will do very well.
Wayne have made it clear for me, not be affraid of have made a wrong desission that will course me a small loose.
Also I trade out of a rule based plan, that is made upfront in writing before any trading.
Keep it simple:
What do I do?
When will I do It?
Why I’m doing this?
Kind Regards
John
Now, I rarely attend live webinars, but of all I’ve attended, it was the most fruitful two hours I ever spent in one. Trading is an extremely lonely profession where the slightest slip of concentration in the markets can prove fatal and, lacking another way to put it better, that concentration-induced loneliness takes away a bit of humanity from me each time. That is the reason why I’m very thankful for the opportunity to be reminded on why we’re trading, how we’re supposed to create a trade plan, and how to decrease the odds for having to take a loss due to occassional moments of indiscipline that slips into even the very best of traders. And all these during a session supposedly about NFP per se, too!
Wayne just has a way of teaching and reminding that is entertainingly refreshing and upbeat, whilst keeping your feet firmly on the ground. It makes me want to stay on post-NFP even if he talks about something that has little to do with the technicals and fundamentals of trading. That is because even if I’d restore just a bit of humanity within me by staying on, it’d have been worth it.
Thank you again,
Mick.
Fergie
Perth WA