For what it's worth, I'll put down my general strategy around...

For what it's worth, I'll put down my general strategy around this stuff.

I follow the S&P 500 to get a general indicator of what might happen down here in Oz. Since the peak in January we've started down a new bearish channel. As you may have heard, bear markets tend to happen every three to four years and last for an average of around 17 months give or take. For a while, I've been watching this latest rally since mid-June and have been assuming it's a bullish rally in a bear market, also known as a bull trap. Over the last couple of days, I feel like we've got key indicators confirming this but it's not done yet. On Tuesday we had a green close but the upper wick touched the 200 MA which will act as resistance and then closed on trend. Today, we have a bearish doji but we don't have confirmation yet. That will come in the next day or two. Or it will be invalidated. If confirmed, we'll start another long leg down which could last for 6 - 10 weeks. On Monday I sold half of my positions in all my stocks (only hold 5) because I wanted to sell into strength instead of chasing. I'll probably set some pretty tight stop losses today because I want to defend the gains I've made over the last two months as I was out during the last down leg too.

Everyone's situation is different. I don't need to tell you mine but I will for transparency's sake. I'm using the money from the sale of our house to improve our deposit level whilst the housing market drops for 12 - 18 months. It's a risky strategy so I have to be hyper vigilant which I am. I can be. I own my own business so for the last 2 years I've basically been watching the markets, reading fundamental and technical analysis books, following experts on Twitter, reading thousands upon thousands of HotCopper posts and overall just trying to learn more about what makes global markets tick. I'm obsessed with it all. I'm not an expert but from the lucky punter who saw an opportunity during covid to the person I am now, I've progressed a huge amount. What's my point? My point is, that if you want to understand why things are happening you have to push yourself. You have to take the focus off what's happening in lithium, take off the blinkers and look around. What's happening globally? We are not in a good spot. Post covid, because that was a V-shaped reovery, everyone is expecting that to happen again this time round. I don't think it will. There's war happeing with a nuclear power FFS. Supply chains are rooted. Sure plenty of people have jobs but there's enormous inflation, Europe is in summer time. What happens when they go into winter and don't have any gas coming out of Russia? Little nuclear power to bridge the gap and majorly upset weather patterns on account of climate change. Things are not OK. If you're just looking at GT1 or lithium and asking what's happening, you won't find the answers.

Do I think what I just said invalidates what I think about GT1? No, but I won't fall in love with a stock. I've seen what happens when people do that and I feel like (from the pages of HotCopper) I've seen people sink in money they couldn't afford to lose and hold on for grim death believing it will come back. There's too much naivety in the markets. There are massive funds, experts, people who do this daily, out to take your money so you have to defend it. One of the first things I remember reading when I started this journey was 'protect your capital'. Now, I've not done that, that well at times. I was playing fast and loose but the covid bull market papered over a lot of those cracks. Bear markets aren't so forgiving.

Everyone's strategy is different so you have to figure out what you want to achieve and then underpin this with some good reading and research.

All the best out there.

P.S. I'd be happy to be wrong about everything and for this to be a blip in the road and the bull market to continue to froth. I'm hoping for the best but preparing for the worst.