Gold monthly chart overbought?

While it may appear that gold is getting overbought on the monthly chart, I caution against taking profits too early. Yes, stochastics are overbought, and yes, we are up 5 months in a row now, but one cannot have any idea how far a strong bull can run. It is not a prediction, but GLD could double the move it has already made from here, and do it in very short order. That still would not even put it into new all time highs, which becomes more of a certainty with each passing day. The point is to stay in your trade until whatever system you used to get you in, is now telling you to get out. My indicators are extended but that does not mean I exit because they can stay that way for long periods of time, like another 5 months for example of similar action. Again, my emotions tell me to book profits soon, but I will stick with my plan regardless of how I feel, and for now the discipline tells me to stay on the bull.

Do I risk giving some profits back? Yes, but that is part of the game. Play big, or go home, because hopping in and out for dinky gains and losses gets a trader nowhere. We need conviction in everything we do, and that doesn’t mean stay in a trade forever, it means have the conviction to stick to your rules no matter what comes your way.