Make money in the share market is not easy, getting rich is even much harder, but is not that difficult when you do your own research and learn by yourself, especial after you make your first buck of gold. admittedly, I'm not make myself first buck of gold yet, but I would like to share some of investment ideas with other members. In order to make money from share market:
1. First choose right time to enter share market is the important step. At a macro level pick the market cycles, buy in early bottom. After centre banks decrease OCR to the level of can not go further down, this is the bottom out sign of macro economy, this would be the best point to buy into the share market. To a specific share, the early signs of going to rise would be the best time to buy. The early signs are from company announcements, market reactions, News and your knowledge.
2. Being in the right sectors is also most important. Always choose booming sectors and never choose sunset sectors. The resource sector has been growing years and will continue to be good as recovery continue. Those sub-sectors would be good to watch:
2.1 Gold: Gold is physical money, none can print gold, so only a gold company can "print" physical gold. Centre banks from China, Russia, Indian,Brazil and oil riched Arabic countries need convert their paper money into physical money to back and protect their value, this will greatly support gold price. Inflation, Eropean zone Sovereign debt problems and instability and anti-government protests in Middle East will continue stimulate gold price.
2.2 Rare Earth: It was great year for REE in 2010 and will be good for years from now as China supply 90% REE but in short and controlled.
2.3 Copper, Iron and Alumnium are modern Economy bones, as economy recovery continues, will require more.
2.3 Energy is the blood of modern Economy, this is most important part a investor must watch and action.
3. Choose right company management team is the key to success. The previous success record means the team has good experience, knowledge and management, imply more likely they will success next. Looking HC members feedbacks.
4. Choose the location Location, location and location. West Africa, South East Asia, Mongolia and South America are good area in rich resources and under explorated, give more potential to grow.
Here are my investment picks and stories, happy, unhappy, etc.
PEK: Rare earth in West Africa. When I first notice PEK, it's share price pike to over 50c from 25c in 3 day after trading halt and announcement, then another trading halt and share price spiked to over 60c. Then I started to find why by reading announcements and braved enough to decide to buy my portion at 60.5c. Then Share price ->67c (happy) -> 55c (still fell confident) -> 48c (doubt) -> 40c (hardest time, end of the world) -> 45c (a bit relief) -> 48c ( more relief) -> 55c (hope get money back) -> over 60c (sold all shares) -> 58.5c (buy back) -> 52c (buy too early) -> 74c (happy) -> over 94c (more happy, still hoding)-> ??? PEK is right sector, right company, right location, but not the best time buy in. Pepole make real money are those bought PEK at few cents when early signs were out. So I'm looking for the early REE companies. ORO and NAV are under my radar. Oro: rare earth mt barrett project starts, may be similar to Mt. Weld. NAV gold producer and spin out KRE rare earth company, sector and location are good, mangement(?). Do you have other REE under your radar ?
BYR: Gold/copper, West africa; My first multi-bagger. still hold. PRU is the top share holder. VOR: Mongonia copper/gold; My second multi-bagger by voro. Still in early signs of big copper deposit. PIR: West africa gold, sector, location and management are all good. My third multi-bagger through PIROA.
Shares need to wait with patience, with multibagger potential: ARX: Indonesia gold, sector, location are both good. Early signs of great discovery, start drill in March with a lot cash to play. but civil disturbance and ANZ holding SP. TAW: West africa gold, sector, location are good. GRY is the top shareholder. MSR: gold, sector, location and management are all good. PRU is the top holder.
My investment idea only. Do your own research before you invest in the shares I mentioned here.
Good luck to all investors. Getting rich from share markets.
