I've found that one's belief in an asset tends to be directly proportional to how well they time their entry. Just as an example let's say you are still in cash waiting to enter mining positions. I'm sure there are some in this position. My guess is that those people are drooling at the mouth waiting to get in. They believe!
Of course on the other side of the spectrum we have the guy who entered at $1225. This guy is freaking out. He's knows for a fact that the secular bull is dead. He can't wait to get out!
Now let me ask you this; pretend you have no position at all. Would you be a buyer or a seller of gold & miners at this level? If you would be a buyer with no position why in the world would you be a seller with a position?
Weirdly enough a short seller will be more confident in his position at the moment of entry. The exact time he has the most risk, than if he's already into profits by a healthy margin.
So if you sold gold short at $1225 do you add to shorts here or are you looking to cover at these levels?
It's all in what you believe and that belief is heavily influenced by the accuracy of your entry.
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