When I started investing in precious metals miners , I was consumed by this frontier, I wanted to know all I could about PRECIOUS METALS & MINERS, I also spent countless hundreds of hours watching YouTube videos with older generation mining and investment legends.
So I learned a few things, don't get hung up on a miners current financial performance, look more to leases and resources/reserves held, as long as the company could raise credit and continue exploration , sooner or later a competent team will usauly lead to a good discovery.
Secondly, it's important to learn how to deal with loss, I have suffered over 500k loss in investments through bad management, outright scandalous M&A or just plain dumb reckless spin the wheel ,take a risk bets on miners, so it's incredibly important not to play with more than 20% of your capitalized wealth, taking losses is more palatable when not everything you have is on the line.
Next a majority of my wealth is held in physical assets such as residential property and physical GOLD AND SILVER, so when a potential ground breaking discovery is made, I'm willing to let it ride ,because adding a few thousand k to my wealth won't make me any better off ,so once I have enough information about the potential of the discovery I can determine it's multibagger potential.
One has to know wether they are a trader or investor, once you determine your strategy, stick to it, my focus has always being investment, coming from a real estate background and while not as frillseeking as trading in the longer-term you will make a small fortune with out all the regulatory and tax hassles of hundreds of trades.
I have had many multibaggers over the last 5 years ,have sold some , but still hold many that have since declined, but the fundamentals are still there awaiting the massive resources sector boom that approaches, if you fine tune a portfolio with a mix of midcaps, juniors & explorers ,you will get to participate at every stage of the approaching cycle and as the older wise MINING GURU BILLIONAIRES, say always keep some dry powder.
A GREAT part of my knowledge comes from reading some fantastic posts on HOT COPPER ,by some truly enlightened minds when it comes to geology,financial and geopolitical which all have a bearing on the mining sector.
To sum it all up, you need staying power which requires some intuition ,liquidity and gumption.
GLTA
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