So who are the people that will clean up during the current PM bull market at the expense of the majority? They are those that normally,
* Do not treat the stock market as their primary source of income or the be all and end all. * Have some degree of success in other fields, and are not afraid to use others expertise rather than delude themselves they can be successful at everything. Amazing how those with extremely high IQ’s have difficulty trading/investing in the stock market. * Investigate a rumour rather than buy on a whim. Looking at a chart of past performance may indicate the smart money is already in, and the stock is likely to collapse on the earth shattering news. * Can place food in the microwave and see out the entire two minutes. * Avoid becoming depressed when gold drops $10 in a session or over excited when the reverse occurs. * Treat conspiracy theories with some degree of caution, however accept the fact one may indeed come to fruition. * Avoid bringing up, “I could have, I should have, Why didn’t I? next time I will, and why the hell not? when dealing with the market. In hindsight we all made money, got the girl, hit the winning run and sailed off into the sunset. The successful speculators buy low, sell higher and do not dwell on the fact they failed to extract maximum value. * Successful speculators do not ring their broker every half hour or day for that matter unless they have other things to talk about. * They do not borrow copious amounts of money to buy depreciating assets. * Refrain from boasting on Internet forums when they make a profit. Most of them treat them as humour material at best. * Have fewer stocks with larger holdings as opposed to becoming an “alphabet speculator”. * Understand that mines take time to develop, and managing directors have more important things to do than address a frustrated trader who cannot get out of the stock. Most complaints from shareholders to company Directors are from those seeking exits, not to find out when a project maybe developed. * Are able to separate luck from trading ability. * Accept that gold may not be the only show in town. Silver stock accumulation and tenement holding applications have continued on unabated despite the refusal by many to treat it as a viable alternative. * Have exit strategies in place already for their gold stocks, and are already looking at other sectors of the market to research and build positions. * Account for the fact that the PM bull is likely to be far more prolonged and powerful than they originally anticipated. * Laugh stupidly at “The Simpsons” and not degrade those that are on the floor during Seinfeld or vice-versa. * Accept past mistakes and clean out their kennel. Owning small amounts of companies in liquidation or flirting with extinction is a cheap education. * Can spot a bs a mile off and realise that one day he/she will be worth knowing. (Normally during the middle stages of a spec bubble). * Whilst grateful that there is “One born every minute” they realise that at times things will temporarily go against them, and they are able to resist the temptation to switch camps in fear of missing the rush. * Have the ability to foresee a likely transformation of a company that gets minimal attention into a potential market darling. * Refuse to get caught up in the hype. When a stock they paid 3c for is suddenly 30c and being touted to go to 50c they are able to separate themselves from such discussion. * Have a life outside the market and whilst keeping up with current affairs they also realise the need to escape. They are often out chasing the opposite s@x or spending time with the family rather than watching every play on Wall St on a Friday night. * They are able to find reasons to like a stock rather than dwelling on the negative aspects when the share price is dormant or lower than what they paid for it. I find it amusing how a client can hate a stock at 6c but love it at 9c when they paid 8c for it. More often than not the company’s fundamentals have not changed one iota. * Remain focussed whilst realising that at times their spreadsheets will be soaked in red ink. Often the pain on the way down is more than made up for on the way back up (normally stocks sold off on low volume). * Refuse to die wondering. If the fundamentals supports ones gut feeling, they have the ability to override technical analysis regardless of how terrible they look on the chart. Everything is attractive and guaranteed to make money at the top. * Importantly they do not become caught up in their own success. Whilst we all like to be complemented from time to time there was one line from Wall St that puts it all into perspective, “We are all just one trade away from humility”
