Erik Wetterling – Resource Stock Investing Strategies Using Risk-Reward Setups To Guide Value-shuffling And Position Sizing

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us for a nuanced conversation on how he approaches value-shuffling and position-sizing within his portfolio.  One of the key points he makes is to constantly look at the percentage risk versus reward that may change as sentiment moves share prices and valuations around, when the fundamentals may not have changed.  Also, we discuss how the risk/reward setup can change drastically after key company news points to discovery or key milestone and then the propensity of evidence is for there to be greater value creation in the coming news releases, warranting taking on a larger position size.  


Another key takeaway from his portfolio management strategy is not to pull profits too soon in an early-stage evolving story, and to really let the winners run big in his portfolio.   Erik points out that sometimes investors are so happy to have finally made a profit, that they exit too early, missing out on the true multi-bagger potential.  In his experience, it has always been a few big outperformers in his portfolio, at any given time, that he really let run higher unimpeded; which have made up for the inevitable losses occurred on other speculations.



*In full disclosure, the companies mentioned by Erik in this interview, Snowline Gold (SGD) (SNWGF) and Inflection Resources (AUCU) (AUCUF), are positions held in his personal portfolio, and also may be site sponsors of The Hedgeless Horseman website at the time of this recording.




Click here to visit Erik’s site – The Hedgeless Horseman

    Aug 03, 2023 03:52 PM

    Eric is not far removed from my approach. He just knows more. Very enjoyable.

    Aug 03, 2023 03:21 PM

    So I have been picking up bits and pieces of Snowline for awhile. It has been showing a good slow climb on the charts. I don’t have enough of it as .20 cents is far removed from $3.00 a share. But, it is hard to deny its drill results to date. So I decided it would become my beer money stock because I didn’t have any stock that I wanted to give up 50,000 shares to purchase 1,000 shs of Snowline. But I would give up $200 to buy 50 shs of Snowline if posdible, here and there. But, today I committed the ultimate sin and sold 2000 shs of Eloro for about 1200 shs of Snowline. Snowline was +50% in my account and Eloro was -15%. Snowline went up with good drill results. Eloro may go up more tomorrow and I may regret today. But, I will continue buying Snowline until it disappoints.And try to figure a swap for more Eloro down the road. But, sometimes backfill of sells to buy movers doesn’t happen. Then you backseat your past decisions. It will be nice when the boot comes off the neck of miners so we can at least attempt to trade on fundamentals.

    Aug 04, 2023 04:11 AM

    Market Crash in 6-8 weeks, BOB Moriarty! DT😜

    Aug 04, 2023 04:18 AM

    Fitch downgrades U.S. long term ratings from AAA to AA+.

    Like Bob M points out this is a big deal! DT

    Aug 04, 2023 04:47 AM

    bell weather NEM has retested swing low of 5/31 on about half the volume….Is this now a low volume initiation of accumulation by large funds?….glta

    Aug 04, 2023 04:48 AM

    Just thought I would chime in to say that my prediction from at least a year ago–that silver would be stuck in the mud until the 100 WMA either crossed below or got a lot closer to the 200 WMA–was dead on.

    I am expecting silver and gold to start significant and sustained upward rallies this year that should last around 2 years. That being said, between now and December, a lot can happen. The swings in silver can be comical (look what it did pre- and post- Covid crash as an example). If I had to take a guess, it would be that price stays somewhat weak or subdued until September or October. Worst case, I suppose one fear is that if we get a large correction or 1987 type crash in the stock marker this year, that could create yet another monumental whipsaw in silver and especially the miners.

    One thing that has me relatively optimistic is that silver’s 200 and 400 DMAs crossed positively about a month ago ( a very significant event IMO). Ideally, the 400 DMA should act as very strong support now, and if we are lucky silver won’t even break below its rising 200 DMA. If we were talking about anything other than silver, I would be much more confident about this technical picture. But because we are talking about silver, in the short run (and in light of the realistic possibility of a stock market crash), price can literally go just about anywhere.