Active versus passive investing.
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As far as the individual is concerned investing in the conventional equities represents, pretty much a passive action whereas, the resource sector is comprised primarily of active individual investors.
CFS, if you can’t name me a better leader from any walk of life other than Trump, you are a programmed idiot, forget Ron Paul, his chance has gone! DT
Couldn’t agree more with Chris’s comments. Don’t want to lump all advisers and brokers together as there are some good ones willing to work to make you money but my opinion is the majority are totally useless and most people would be better investing significant time into making some of there own decisions. That doesn’t mean everybody should become stock pickers but they can educated themselves on how to become a good advisor picker and know enough to hold their adviser accountable.
Al, it might have been Investing up until 1995 or so, but now and since the Rubin era -1995- the criminality in all markets goes unabated and justice unenforced or under enforced. It’s all speculation.
We have a NEO-FEUDAL CASINO GULAG PLANTATION ECONOMY.
The evidence that Hitlery is a criminal is endless…
FBI Admits Clinton Used Software Designed To “Prevent Recovery” And “Hide Traces Of” Deleted Emails
I gotta agree Marty, concerning the criminality anyway, dont know about 1995.
I was going to say, “active invester” is kind of a new way to say market trader.
Its gambling, Casey calls it speculation, same thing.
Yes you can handicap yourself, find info others dont see etc but that goes with pretty much anything, tricks of the trade if you will.
A Glazier for example, remove a door closer, looks straight forward, get it wrong a person knocks their teeth out. Just like PM investing. lol
Tricks of the trade. Part of everything we do.
I really dont know whats the best investment for any particular person, but there sure is alot of “snake oil” salesman in gold/silver, pumpers all over the net, inacurate info from the miners themselves, people suggesting anyone can win on blogs (not without hours of effort) and thats never ending)
Ive found it fun and learned alot, but I sure wouldnt advise a person to pin their retirement hopes on mining shares.
Course, its to the moon any moment now, so better get on board before there is nothin left to buy. lol
Rubin, the financial equivalent to A Hiler.
You know who I mean!
GDXJ is cooperating with my expectations:
On August 24, 2016 at 3:36 pm,
Matthew says:
“I am not calling a low here. I bought GDXJ because the move was big and fast and that usually means that we will get a good, tradeable bounce – but I do expect a little more downside tomorrow morning. I will be watching the 43.50 to 43.75 zone.”
———————————
It bottomed at $43.47 this morning and then rallied exactly $3.00.
Fwiw, I no longer own it.
I added to four long term positions this morning and each of them now has a decent bid at or above my order fills. The action has been good.
I also added to some positions and started a new one this morning that have already moved up nicely.
It would seem we were “Active Investors” today….. 😉
I added some more today also. I said I was going to wait until after the close Monday but couldn’t resist.
Ha! neither could I. I did transfer in more funds into my trading account for the beginning of next week to do a little more shopping in a few different sectors.
I even got a wild hair and started a position in Orezone Gold. (ORE.V) (ORZCF).
All year long I’ve been following their success in getting their mine developed and permitting finalized but the price just took off and never came back. I wanted a pullback, and on Mon, Tue, Wed it finally came – but it was really a 42% flash crash.
ORE had reduce their oxide resources by 30%, give away 2 tiny satellite locations to artisinal miners, and now they have to rework their estimated resources (and the new data comes out by September 7th)….. In 2 weeks we’ll know the extent of how this effects the mine-life and resource, but it corrected down even further through Wednesday, and investors got very emotional, and it looks like they’ve overdone it to the downside. It bounced up nicely throughout the day.
Orezone Gold Corporation (ORE.V)
TSXV Delayed Price. Currency in CAD
$0.62 up +$0.08 (+14.81% gain)
As of 3:57 PM EDT.
I could be playing with fire trying to catch the falling knife, but it was just an initial position, and I may have to average down in 1 or 2 more tranches.
Just recently I made some good cake trading the over-reaction and then bounce in Sabina Gold & Silver from late June into early July. This looks and feels very similar, but we’ll see how things play out after Sept 7th.
The Resource Maven had a GREAT piece on Orezone this week.
Yes, I’ve heard several people mention Gwen had an Orezone editorial and interview to bring readers their perspective on the meltdown in the shares and their resource reserves. I haven’t been able to find it anywhere, but it may be for subscribers only.
Regardless, I’m willing to start building a position in ORE while it is presently unloved and while there is blood in the streets. The management team is solid, and they were making great progress until they hit this hurtle, so I believe they’ll swing out of this, and they are moving forward with the mine either way.
It is friendly to the bulls that the miners have been so well-bid even though gold has spent the day below yesterday’s low. It is also positive that silver has been stronger than gold today and that the junior miners have held up better than the seniors, technically.
Check out this list of mining companies that presented at the European Gold Forum in April:
http://www.europeangoldforum.org/egf16/egf16-webcast/company-webcasts-alphabetical/
Each one has “webcast” of their presentation there. HOURS of research on one site.
Matthew – Let me recommend a presentation you may like to get you started:
Americas Silver Corporation (USA) (USAPF)
European Gold Forum presented by The Denver Gold Group, Inc. on behalf the world’s precious metal producers.
April 19, 2016 – April 20, 2016
Zürich, Switzerland
http://www.europeangoldforum.org/egf16/company-webcast/USA:CN/
Thanks, Ex, I will check it out.
Ex, if USAers won’t jump on board in the miners, the Europeans certainly will. A Top Flite cadre of presenters.
There is more an more interest from the European markets in the Canadian, Australian, and US resource and energy markets. Notice the conference was in Switzerland. The interest and awareness is starting to pick back up a little bit, but has a long way to go.
The Swiss are serious about Gold and have been for some time. They are the Gold traffic cops for gold going West To East and have the smelters.
EX , check out the movement of Golden Arrow -GARWF- the last 2 days on no news.
Nice Marty. I’m pretty sure this is what brought the increased volume and visibility:
Golden Arrow Announces Trading on OTCQB
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 22, 2016)
“Admission to the OTCQB market is part of a long-term strategy to broaden our shareholder base, improve liquidity and increase the visibility of our company,” said Joseph Grosso, President and C.E.O. “We are pleased with our admission to trade on the OTCQB, as this provides us with a trading platform for American investors.”
Thank you for the European Gold forum link Shad.
Best as always,
LPG
There are some older presentations from April, but I’ve been watching them and still getting a lot of value to better understand their business strategy, projects, and plan for 2016/2017. Most are just 20 minute presentations.
Cheers!
Both SGN and GMX is a great buy today.
Do you think Scorpio is ready soon or it may need higher gold price to break out from the consolidation it had for over 5 months?
A higher gold price would be great but I think it will break out when the market becomes more confident that the current price, or higher, is here to stay. The arrival of that confidence should coincide with the end of the current correction.
I found it to be a rather calm day – I did some re-balancing.
I have to feel completely comfortable with a stock to own it – I jettisoned 3 stocks and added to others that I really like.
Remember: This is a 2-5 year plan.
Canarc Options FG Gold Property in Central BC from Eureka Resources
Ivanhoe Mines Announces Drilling Results From Kakula Discovery- Drills 8.75 Metres of 9.84% Copper and 18.78 Metres of 5.32% Copper
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO–(Marketwired – Aug. 25, 2016)
Ex, Rick Rule has been high on Friedland the entire millennium. Yes, , appears to be a huge find.
I’ve been high on Friedland and Ivanhoe Mines most of this year and I’m happy that investors finally have this stock on their radar since the Sprott conference. Luckily there has been some steady newsflow of exploration success all strung together so it has really given the shareprice a lift over the last 2 months. I’ve actually sold mostly out of my position, but was thinking about starting to add back to the position again.
JAG had a good day (+10.45%) but is now at resistance. I won’t be selling any here but those who are bearish might consider this a second chance to trim.
I’ve already trimmed into a free ride a while ago, so I’m just holding on for the ride at this point. If we did get a corrective leg down, then I may add to the position, but I’ve been pretty happy with JAG, their graduation to the big board, and Sprott’s increasing position in the company.
I bought a big position in the .20s and still have more than 80% of it. I am in no hurry to sell much near the current level because I believe that JAG still looks much more appealing than any similar producer.
Fwiw, I don’t like the “free ride” approach because I make no distinction between my starting capital and my recent gains. I prefer to size my positions based on risk and reward at all times.
I think the “free ride” gets promoted a lot because it makes gamblers out of the retail crowd as it makes them comfortable with staying in a position that they should be out of – they “let it ride” in casino-speak since they are “playing with house money” in their minds.
That is a good point, and as it is generally touted, the free ride approach does have the casino effect of roulette/craps/blackjack where you are “playing with house money” as a thought construct.
I do completely agree with you that there are times where traders should exit most or the entire position regardless of them having the free ride if conditions are not projected to continue the same trajectory (fundamentally or technically). It is often more prudent to reallocate those funds to another company with better growth prospects, and I’m very big on re-balancing for opportunity, or reducing risk.
Conversely, there are times where you like a company’s future prospects enough that you stay put with a “free ride” and may actually average back into a position with more skin in the game again should that situation present itself. I generally get into a “free ride” scenario where I’ve trimmed an outperformer back to reduce the risk profile and leaving me with a position of pure profit. I take the balance and deploy it into other companies that may also have a unique opportunity to outperform it’s peer group.
That is where I’m at with a number of companies like JAG.V or USA.TO where I’ve already recouped everything invested (and often many multiples more than that). What I’m getting at is that some of my Silver, Gold, Lithium, and Uranium stocks are way beyond just a wash – so if I assigned a cost basis to them they would have a crazy negative cost basis. If I tracked the entire journey with them from when I started buying and selling them). Using those metrics I could add to the position at one point (which would raise my cost basis but it still would be overall negative).
For me there is point where a stock has thrown off 300-700 % where I take a big chunk off of the table (60-80% has been cashed out), but at present I’m just letting the remaining 20-40% ride in the companies I feel confident have more upside but that all that is left as a position is that which has resulted from the proceeds from a well-placed investment = whatever and whenever I eventually sell will be a pure profit, and I’ve already profited from this stock multiple-fold up until this point.
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Maybe a quick basic example would be easier.
Let’s say you started a simple $10,000 position in a stock (XYZ), and this company traded for $1 per share. So that 10,000 shares for $10K.
Let’s say that shareprice went up to $4 per share so your 10,000 shares are now $40,000 and you sold 3000 shares at $4 = $12,000 (you’ve recouped $10K, and added a $2k profit). You still have 7,000 shares left at $4 for $28,000 still in the game, but you essentially have a “free ride” from your initial $10,000 investment being recouped and redeployed in another stock on a new adventure.
Now lets say (XYZ) corp jumps up further to $5.50 per share and you sell another 3,000 shares for a profit of $16,500 that you likewise redeploy into a different stock that you feel also represents a great opportunity. You are still taking a free ride with 4,000 shares but so far you recouped your $10k, but had a remaining $2k from the first tranche and if you add that to your $16,500 from the 2nd tranche sale, they the total profit (beyond the original $10k) is $18,500.
So now the total sum of $28,500 that came from the $10K is now redeployed in new stocks, and you still have the remaining 4,000 shares in the “free ride” scenario.
Now, let’s say you decide to add back 2,000 shares when the stock dips down to $3.50 = $7,000. There are 2 scenarios here.
A) if you take this from previous trading profits in this same stock then I’d say you added back but still at a zero cost basis because it has has not eclipsed the $18.5k in above line profits.
B) If you have already cashed out that $18.5K beyond the $10 as 100% profit in the trade, and you are introducing new funds to buy the 2000 shares @ $3.50 for $7,000 and adding that to the 4,000 free ride shares then you now have 6,000 shares at a cost of $7,000 for a cost basis of $1.1667 per.
{so it really depends here on where you draw the cut off in your profits}
Now let’s say the stock surges to $7.77 and you decide to sell 1000 shares for $7,770 and you have recouped the $7,000 in scenario (B) and still have a profit of $770; in addition you now have 5,000 shares left that are back in a free ride situation.
Lastly the stock goes up to $9 per share and you decide to sell 2,000 share for $18,000 in profit. You have 3,000 shares left in a free ride situation currently valued at $27,000.
If you keep this going a few more rounds, it is too hard to figure out what you cost basis even is any more and just easier to say you are leaving those 3,000 shares in place as a “Core Position” and letting it take a free ride.
That is the way I mean it when I say I’m just leaving my core position in place to take a free ride from here. I may finally sell that final position at $10 a share for $30,000, but clearly I’ve generated far more than $30k in profits in this example.
In many stocks like Jaguar or Americas Silver I’m 20-40 trades back and forth like this into them and lost track where I’m at, but have made multiples on them and just call them free rides.
Sorry that is a long response, but I just wanted to unpack that I wasn’t talking about the ole “Sell half when it doubles” free ride. While that is the minimum for a free ride, there are times where I’ve traded back and forth so many times in the same stock that I’ve honestly lost count, but I’ve always had at least some position in place. I usually just go with whatever amount was said to have changed hands in a calendar year based on the FIFO practices.
Don’t get me wrong, I’m all for trading. Most of my positions rise and fall dramatically and repeatedly. My point was simply that I don’t consider any position a free ride since I don’t want to lose profits any more than I want to lose an initial investment.
Selling half on a double is not a plan I would follow. In some cases, one would be better off to sell 80% on a 20% move and in others, selling 25% on a quadruple might be optimal.
Agreed. I’m not really a fan of a “one-size-fits-all” approach like sell half after it doubles, and agree there are different weightings I give the same stock at various times in the cycle. Really re-balancing within the exact same stock may be different for various investors based on their time horizons, investing goal for what a good return is and what their entry point is, and how they evaluate risk for that sector or stock within the sector.
Different strokes for different folks. That is what makes a market…..
In 2015, I tried a lot of methods of trading, while teaching myself both Technical and Fundamental Analysis. I lost money with all my methods – I just was not able to sell and make a short term profit.
So … it is “Buy and Hold” method for me. I will take small percentage profits on stocks when the charts tell me to, but I I will NEVER try to time/plan a sell/re-buy plan. When I SELL shares it is “Fer good” – cash for another investment (or just cash).
Plan the trade. Trade the plan.
That’s a good value strategy as well Brian, and what I’d advise most investors to do in a Bull market, (just not in the early or middle stages of a Bear market).
May your plan go exceedingly well sir.
I have been actively investing off and on for 55 years.
It is a lot easier than it used to be by far, thanks to the internet.
I am 80% to 100% invested all the time,
one has to remember to rotate and that there is a time to be short as opposed to long.
I could never be described as a momentum trader……there are machines that can do that much better than myself. Why should I try to compete with high frequency trading.
Politically, however, how on earth could we end up with two so pathetic candidates if people did not buy the message of main stream media.