Mistake #6 – Trading with the herd

Stick to your trading plan and your analysis.

It is easy to get caught up in the game. No matter what gold investment you are participating in, there is a lot of adrenaline and emotion that goes with trading. You should already have developed a trading plan, so sticking to it should be easy no matter what the crowd is doing. Note that this is different than trend following. What matters here is avoiding hype. The old trading adage, “Buy the rumor, sell the fact” speaks to the kind of over-inflated action that can crop up at times. Be wary of a stampede in one direction or another, and as long as your planned exits are not triggered, there is probably no reason to run.