Market Mavens and Gold Market Speculation

30 Jan

Gold Market Speculation - Market Mavens

Spectacular profits are captured in gold market speculation, the key is knowledge of when, where and how. To gain some insight we created a virtual round table of current-day market mavens, to which we added our favourite, the Great Bear of Wall Street; Jesse Livermore, perhaps the great stock market maven of all time. Some say that Jesse Livermore was so expert at shoring stocks that his untimely death in Manhattan on November 28, 1940 (age 63) was more likely an “assisted suicide”. Never the less, his Wall Street legacy remains intact.

Top 12 Market Mavens for Gold Market Speculation

Most Market Mavens (above) agree that the price of gold will go up.

The Fixed System incorporates all the successful concepts and procedures Jesse Livermore used in the 1929 crash to make a hundred million USD shorting shares on the NY Stock Exchange. He had the facts and applied them in a manner consistent with economic law. He used leverage and pyramiding. The pros on Wall Street make almost all the big money from the short side. Look at it this way: only two actions are possible in the market. You can buy or you can sell.

The entire Wall Street system is simply a marketing tool used to acquire shares for next to free from the companies Wall Street finances and sell them to the general public at a higher price. The brokerage firms, sales personnel, lawyers, and accountants have to be paid. The process has costs. Without paying for promotion, the share prices could not reach ridiculous levels. Jesse Livermore did not work for a brokerage firm promoting stocks. He was an independent speculator. When he shorted an overpriced share, he didn’t pay for getting it to be overpriced. If he shorted a stock at the top and closed out the short at the bottom, he took 100% of the profit without paying for any promotion costs. This did not escape the attention of the establishment promoters.

Contrary to public record, Jesse Livermore did not die broke nor did he commit suicide. It is best not to let them know you’re eating what they consider to be their lunch. The Art of Speculation during Civil War – Sun Tzu Meets Jesse Livermore, covers the entire privacy issue in full.

The Fixed System (option trading service) offered is as follows.

All securities and cash stay with your broker or bank. We provide you with buy and sell orders. The client transmits these orders to his bank or broker for execution. Our fee is twenty-five percent of profits in excess of fifteen percent per annum.

Q: What is the Fixed System?
A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes.

Q: What do you mean by scientific method?
A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually correct premises.

Q: What do you mean by economic law?
A: A useful description of human action related to economic activity. See Human Action by Ludwig von Mises and Man, Economy, and State by Murray Rothbard.

Q: Where do I begin if I want information about how to apply economic law?
A: Start with The Art of Speculation during Civil War — Sun Tzu Meets Jesse Livermore.

Q: These three books amount to over 2,000 pages and the material is sometimes difficult. Do I need to understand all of it before I can use the Fixed System?
A: No, but you’ll get better results if you do. If you want to base your speculation on facts and not falsehoods, on valid conclusions and not fallacious reasoning, then read and study these three books.

Q: Which of the three should I read first?
A: Start with the Q&A in Sun Tzu Meets Jesse Livermore (Appendix A). Then read the entire book, then Mises, and then Rothbard.

Q: I understand that all value is subjective and that in a market economy, the current price will be bid up to the expectation of future price less cost of carry. The same process occurs in reverse when market participants expect the future price to be lower. You use four criteria to measure this and to call the low in the gold market:

  1. a break to the downside in the general securities market
  2. extremely negative sentiment indicators
  3. ending wave pattern
  4. specialist short covering

Is all of this part of the Fixed System?

A: Yes. That all value is subjective is a fundamental law of economics. The system is fixed, constant, because economic law and facts are fixed, constant. You can ignore the facts and law, but you will still be subject to them and suffer the results of ignorance. Economic law is just as binding as the law of gravity.

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