Edit (8:59) What's wrong with gazing at large war ships, anyway?
People read the blog and people subscribe to its resident newsletter. There are people accessing this little corner of cyberspace where I put forth opinions; you are not just bits, data packets and servers robotically accessing. With this in mind, allow me to self-indulge with a response I sent yesterday to a novice investor who inquired about the NFTRH service, with a lot of questions and input. Her mail is not included here, save for the one statement about silver below. But following is my response, which especially for prospective NFTRH subscribers, can help give clues as to whether the writer is right for one's particular orientation or not.
I was heavily bulked in the financials and [pharmaceuticals], which were not making me happy, until a chance meeting with a Wells Fargo dude resulted in his comment, "Dump everything and buy silver"
Okay Jennifer, let's try to address each of your concerns, questions, etc.
We were all new to trading once, and the only way to get a feel for it is by DOING it, which you are. You will make a lot of mistakes along the way and truth be told, we all do - even pro's do, consistently. But mistakes simply must be limited. Learn to love taking a small loss and hate taking a big one. Learn to take a profit, because you earned it. But also understand your goals for a trade before you enter it, and then try to keep these goals in mind. Think about balance and the strength that having an ample level of cash on hand can give you; in other words, if things go south you are not all in and frightened. Depending on the situation, you might even be looking to take advantage. Most of all, HAVE PATIENCE. Trading is a mind game, heavily psychological and most of the time your opponent is you, or at least your greed/fear impulses. It sounds weird but if you can come to an almost Zen-like state in viewing the markets, you will be fine. But it takes experience... and a lot of mistakes along the way.
And for heaven's sake, try not to be so naive and trusting, because these creeps will eat you alive! Nobody knows what will come next and anyone who advises dump everything and buy silver is demanding you take untenable risks.
Please be wary of the silver crowd and its promotions. While silver can run to amazing highs, it can drop just as quickly. Gold is much more a metal for all macro backdrops, inflationary, deflationary and much of what is in between. Silver is more positively correlated to economic growth. The gold mining fundamental case can actually improve during economic contraction. Of your stocks, I like and own FRG, FVITF and THM and would like to get RBY at a lower price if possible.
"My point is, I am smart enough to know I have a lot to learn..." And that is half the battle right there. Just do not extend yourself (i.e. don't go all in), the market will still be there when you feel you are ready to manage it. FWIW, there are financial professionals in the NFTRH subscriber base who do not always know what I am talking about. But it seems that there is an aspect where people seem to 'get me' over time. I am trying to promote a more mature way of navigating the markets as opposed to a "look at me, stock pick guru!" kind of thing.
I have been on top of the current correction, but according to my work this correction remains within the context of a large upward move - possibly an epic move. As of now, this remains a test of the weak hands and nothing more. But since I cannot control markets and am not a guru, all I can do is update the moment something goes NOT according to plan. The PM's are very volatile in both directions and again, balance and perspective are called for every step of the way.
There is no 'Uranium is out' or 'Copper is in' because the people who say these tidbits are just thinking lazily. The market is constantly deciding what is in and what is out. For me, Uranium was in last summer as NFTRH added several U's during the depths of despair for the sector. I just unloaded all of them, most for 100%+ profit. So yes, Uranium is now 'out' for me. But again, I do not control the market. I can only control the risk I take on or avoid.
A final note: NFTRH includes interim email updates during the week, usually focused on individual stock opportunities but also on important market moves and their potential meanings. For instance, we recently managed the topping of the PM sector and continue to manage the ongoing corrective activity. Subscribers seem to really appreciate these updates.
So, I hope this gives some answers for you as you try to make your decisions. I always enjoy receiving thoughtful mail like yours. The biggest thing you have going for you in my opinion is that it seems like your ego is in check. It will have to be for long term success.
Regards,
Gary
http://www.biiwii.com
http://www.biiwii.blogspot.com
