Elliott wave theory in practice - you're not always right first time

Elliott wave theory gives you a firm idea of where the market should be headed - but only if it conforms to your wave count. In this example from the gold market, the initial count was wrong, but the Elliott wave principals served to minimise the losses.

The gold market has been one of the best bull markets for many years. It was once the preserve of professional investors, but the introduction of ETFs (exchange-traded funds) and other instruments has meant that small investors can now trade gold bullion with relatively small investments.

Gold coins continue to be very popular, but most people who buy them hang on to them for dear life, appreciating their beauty as much as their investment value. I would say that most are taken out of circulation for many years. Also, the dealer bid/ask spread makes them unsuitable for traders.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.