life cycle of a mine & speculation physcology

I have notice quite recently a few shareholders are starting to worry about their Lynas investment lately and with the Lynas share price at $1.70 i can see their minds are starting to become their worst enemies. They can not understand why Lynas share price is falling so their minds start to play tricks on them casting doubts into their mind.

Common thought process during fear and doubt (Thought Process)

1) The Malaysia Government will change their mind about the approving Lynas OR Delayed until they win election.

2) Fear Of Anti-Lynas Group will somehow cause the Lynas LAMP will shut down LAMP

3) Blame on Management not doing their part well enough to support the share price.

4) China will flood the markets with REE

(PS BTW through research i already know the answers to the above fears so i am always in a peaceful state of mind)

You have to understand all this is physcology, just your mind playing tricks on you....some people CAN'T handle the pressure and have to resort to asking their Wives what they should do (True Story).

To combat this fear Chihawk and Nursery often remind investors to keep their eye on the BIG PICTURE.What do they mean by that? In order to SEE THE BIG PICTURE what they are trying to tell to guys is to do Alot of research!

Example Research Topics include :

1) Understanding mineralogy of the mine, what makes a good rare earth deposit?

2) Research into Quality of Management. What is their track record? Has Nick Curtis done it before?

3) Research into Malaysia Politics, Research into history of China.

4) Research and Understanding world economic and how rare earth fits into the picture.

5) Financial Analysis of Lynas

These are some of the example topics i have been researching and learning about for the past 5 years.

It also helps to understand the basic share price action of a company during "The Life Cycle of a Mine" which is:

1) Discovery 2)Development 3) Production

I am quite a young guy but i am lucky to make friends with some speculator who had more experience then me. One of them was 1murf who explained to me the share price action as he invested in a company from exploration to production. I went and do MY OWN research to confirm his ideas and he was absolutely right as all the companies share price follow the SAME PATTERN~!

I am going to post Nick Curtis last company he founded called SinoGold (ASX:SGX)and it shows you the share price action of SinoGold from Discovery to Production and i will let you guys work out what Phase Lynas is in and where it should sit on the share price curve.

Also one more thing, you need to have courage and confidence in yourself. In orders words you gotta have the balls to make big bets. No one ever became rich by following the crowd. Till next time.

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