Dec

21

 A friend will ask you what you think of gold. "It's below the round number," the personage says. "Well, I doubt anything bad could happen near the end of year you say. Christmas et al," you say. The friend buys, wets his or her beak. News of liquidation of big gold bugs hits. Gold has the biggest drop of the year 50 bucks in two days. You don't look like Marilyn Monroe or Paul Newman in the friend's eye as the case may be.

Allen Gillespie writes:

The big leg down in bonds seems to have been the hammer on all things. On nights and days like this, however, one cannot help but think about Profitable Grain Trading by Ainsworth-- his basic system looked to by the lows of the prior month 7-9 months before final expiration and weekly lows once the time to expiration was 3-4 months. I think his explanation of the economics of discounting futures is conceptually sound. One cannot help but notice that the Aug futures low in gold in Nov was 1680.90 and we just traded through that two days ago.

Vince Fulco writes:

Not bad, an 80 year old book which in reprint still runs around $50. Can't say that about the vast majority of trading tomes.

Easan Katir writes:

It was reviewed on Dailyspec a few years ago by Mr. Sogi.


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2 Comments so far

  1. Jeff Watson on December 21, 2012 12:11 pm

    Ainsworth later admitted that his system wouldn’t work in modern times with the USDA, exports, and other government forces at play. Much of his material is out of date, and the methods obsolete. Still, it was a good read and Ainsworth was a master and one can always glean trading lessons from a master. And there were many nuggets of wisdom in his book, especially on how to identify tops in the grains(which still work today). I have a signed first edition of Ainsworth’s book in my collection. In my opinion, old man Cutten was the better trader of the two despite the fact that Ainsworth never lost $50 million dollars in one whack like old man Cutten did. But then again, my mentor was trained by Cutten and my bias clearly shows.

  2. astro the family dog on December 23, 2012 7:45 pm

    One of the best still use many of the ideas today…

    Old crap still works…go figure.

    LOL..:)

    grains a lot lower to go…

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