you are right. Stocks - even bargain basement ones - rarely go up 50% a week after you buy them, but they often do within six months. But six months is an eternity for a trader.
I bought Mincor at 18c and 14c around the time of Sept 11 and it feels like it's taken forever before it has finally taken off. But it has been less than a year and is now showing a profit of nearly 100%. Kingsgate sat around the 80 - 90c mark forever before taking off big time - but really we're only talking about a year.
Having mastered fundamental analysis last financial year, this year I'm trying to master timing and swift exits if the market turns - appropriate skills for a gruesome bear market!
I like to take a small stake in a company I'm keen on, and add to it once i sense the price is moving. Obviously, this is a skill that takes time to hone (some say it can't be done), but if it can be mastered , it certainly makes for efficient and exciting share investing.
In a way, I'm pleased I'm learning this skill in this bear market as I know I will be nimble and not hang around should the share price fall. it's just too scary.
I'm also very selective about what I'll invest in - any stock with a prospective p/e greater than 5 is looking expensive to me in this market. Hence I'd never buy the blue chip resource stocks like BHP and RIO and Wodside as they aren't cheap enough!
I know there must be great prospective bargains out there in the resources sector that i am not aware of.
I remember about nine months ago on hot copper someone reporting on Selwyn and what a steal is was. It turned out to be a ripper. Triako was another great bargain just waiting to be discovered. Which are the undiscovered bargains in the small resources today who are also prducers or near-producers?
I'm off to check out Menzies Gold - for some reason it hit a high this week I think. Perhaps it's the bargain I'm searching for.
