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.
- Don’t fall in love with a stock
- We take most of our profits on parabolic moves
- Set rising stops to protect profits
- Set an absolute stop to minimize losses
- Taking some profits makes future decisions more rational
- We can’t “get rich” off a position until we sell at least some of it
- We don’t know the top … but we know the bottom
- Selling isn’t divorcing … we can play it again