looks a bit like accumulation...., page-4

re: not much selling Hello,
To those who have misunderstood me, I have never suggested that I will or anyone should hold GBG until production. How long anyone holds if they buy GBG is up to them.

Whether the GBG successfully develops their iron ore is irrelevant to me. What is important to me is that GBG be seen to be travelling in the direction of development, the market believes this and the market develops enthusiasm for GBG on that basis.

History shows that holding many resource stocks long term has been a losing play. You could say I am very interested in the psychology of the market.

In my opinion the way to make money is to buy a stock that is unwanted yet has good exploration prospects/a promising resource etc. and sell for a substantial profit -I'm talking many hundreds of per cent, when everyone else likes the stock. You buy in winter and sell in summer.

By the time many resource stocks do get to production the price is actually considerably lower than in the development phase.

I do not trade the stock. I do not get shaken out. I might be looking at three months minimum, usually six months, a year or even longer, though one can still classify the stock as a trading stock because it was not purchased as an investment stock. It's not an investment grade stock like BHP!

(Of course if I believe circumstances are going to dramatically change for the worse I will get out. There can be no hard and fast rules.)