The Perfect Storm?
In many cultures a perfect storm brings on images of apocalyptic events and untold fear can spread bringing with it thoughts of pending doom.
As a stock trader the perfect storm has many implications. While some fear the storm they can see on the horizon I tend to welcome it. After a storm there is usually a time of peace and tranquility and rebirth for man and nature. The unknown has always been there but its how we embrace it and deal with it that designs our own future or fate.
Events always happen in cycles and although we can easily chart these cycles most would rather wait for the event and then profoundly claim that they saw it coming based on past events. Why not calculate and predict when these events will occur and then brace yourself or prepare yourself for the event so that you can benefit from it rather than see it as a negative event.
For example if we know a lot of Americans seem to like to sell in May and go away until the fall then why not sell your dogs and trim profit off your winners and wait to reinvest in September? Another example would be tax loss selling. We all know when its about to kick in yet most act surprised when it does and play follow the leader out the door without really knowing why they are selling. Once again I would have to suggest you shuffle the deck in advance and be prepared. Don't wait for others to react before you make your move.
This all goes hand in hand with following the herd or predicting where the herd will be and beat them there. A few years ago I used to play OTC stocks and it was fun and nerve racking all at the same time. If you've ever played them then you know exactly what I mean. Its a mixed bag of hype, short cover and musical chairs all rolled into one. I always say that the second you feel its time to run with profit a couple hundred other traders are having the same thought. Now its just a matter of who pulls the trigger first. That little voice of greed will try to convince you that the rabbit hole goes much deeper but it really doesn't.
I realized that some groups with very deep pockets can come and go at will on the OTC markets and draw in millions of dollars in action in hours then leave with profits and a wake of bag holders who probably did little or no due diligence. I used to go onto Ihub and check on the days active issues and when I spotted a spike on a company with a float under 200 million shares I would dig a little deeper. You can usually saddle up for a short ride of profit with your eyes closed but it all depends if the ride just started or its on it's last loop. I rarely do it now and would never suggest anyone do it without looking at it as a casino play. The odds are about 1 in 20 you will make good quick cash and most likely you will lose most or even all of your money.
Lets get back to the TSX and TSX-V thats where I feel the most comfortable investing my money. The market watch dogs usually weed out the bad and coupled with my own due diligence I don't lose much sleep investing in good companies in almost any sector. All the information you need is there you just have to dig for it.
The whole premise for this story on a perfect storm began when I started reading up on Red Eagle Mining http://redeaglemining.com/
The company has a very active program underway and its starting to get more attention from the markets. With gold prices on the rise this may be a great time to search out a few junior exploration companies to invest in. The reason I prefer junior exploration over large producers is the fact that the majors seem to be stuck at the same prices and part of this could be due to the fact that they have not expanded their resources. Share holders see the whole picture and don't want to go out on a limb any further with the big players just yet. The junior exploration companies can run several hundred percent on good news and usually the floats are fairly tight. Do some due diligence on Red Eagle Mining and don't forget to diversify your portfolio to maximize your gains and minimize your risk.
RED EAGLE MINING
Mining at the Santa Rosa project pre-dates the 16th century. Red Eagle has delineated over 60 historic sluice workings and over 400 adits and shafts which have been mined more recently. 17,000 metres of core drilling have been completed to date at Santa Rosa with mineralised intercepts averaging 2.1 g/t Au. A 5,000 metre third phase core drilling program delineating the near surface oxides commenced in June 2012. Red Eagle also holds an extensive portfolio of exploration properties throughout Colombia including the Pavo Real project.
CONTENT POSTED ON THIS BLOG DOES NOT CONSTITUTE A BUY OR SELL RECOMMENDATION. MANY OF THE COMPANIES PROFILED HERE I AM NOT INVESTED IN AND DO NOT INTEND TO INVEST IN. THESE ARE MERELY MY THOUGHTS ON MARKET CONDITIONS AND STOCK VALUATIONS. INVESTING IN THE STOCK MARKET CAN BE VERY RISKY AND YOU SHOULD ALWAYS CONSULT AN INVESTMENT PROFESSIONAL BEFORE MAKING ANY DECISIONS. ULTIMATELY YOU ARE RESPONSIBLE FOR CONDUCTING YOUR OWN DUE DILIGENCE AND PROTECTING YOUR MONEY.