..Precious metals - Gold and Silver is Buy and Hold, but with precious metals stocks, you have to get timing right and do short term investing, get out before the game is over.
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I'll say it again. Many traders are not emotionally equipped to hold positions through sharp corrections or long periods of stagnation.
I get multiple comments that one should just buy and hold. Look at the chart below. This is an example of what buy and hold will produce if you time your entry wrong. Miners have been in a 13 year bear market. Dead money for 13 years.
Even once the bottom formed in 2016 they've had long periods of stagnation going nowhere. Traders can use a combination of both strategies.
We buy and hold our physical gold and silver. We trade mining stocks, ETF's and leverage. When the setup is ripe for a strong rally we buy aggressively, and sometimes with leverage.
When the risk and sentiment aren't favorable then we trim or exit positions and wait for the next setup. There is always another setup. Even in strong bull markets there will be corrections. Look at the chart in my previous tweet. Gold had multiple intermediate pullbacks that allowed traders to buy low and ride rallies. We just rode the recent rally with leverage.
Now we are waiting for another good setup. The key to making big money is having the patience to wait for great setups. The vast majority of traders don't have that kind of patience...and that's why the vast majority of traders & hedge funds lose money or underperform the indexes over time.
