Don’t Fall In Love With A Drill Hole & Other Rules For Trading Juniors

Agoracom recently posted a list of 10 important rules for trading juniors. I want to highlight some that I had to learned the hard way.

Assets in the ground and financing aren’t everything. A great management team (25+ years experience with big miners or have advanced a junior to mid-tier with important discoveries) can make or break assets on the ground. A successful management team will have a list of followers and investors.

  1. Don’t fall in love with a stock
  2. We take most of our profits on parabolic moves
  3. Set rising stops to protect profits
  4. Set an absolute stop to minimize losses
  5. Taking some profits makes future decisions more rational
  6. We can’t “get rich” off a position until we sell at least some of it
  7. We don’t know the top … but we know the bottom
  8. Selling isn’t divorcing … we can play it again
A classic example: Seafield Resources Ltd.’s upside parabolic rush and fading into obscurity.

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