RANGES AND CHANGES FEB 3, 2021
Shared Common Conventions
This is your basic README file for STRATEGY and TACTICS for PM's and PM stocks.
My first basic rule, #1 for me, is SIMPLICITY. Simplicity in the approach to the trade, and simplicity of the trade itself. I only use long positions. Buying them to get in them, and selling them to exit the trade. Nothing to screw up.
Has worked fantastically for me. The one variation you may see, is where I buy a heavily dividended stock, and select a dividend reinvestment plan. Old fashioned I might be, but I like getting paid while my money is working, not just for capital gains. That is one slightly different category.
My job as the Editor and Publisher of STRATEGY and TACTICS is to execute
Due Diligence in selecting a stock with strong probabilities of an good return on your investment. Once I can tell a company is not in imminent danger of becoming insolvent in the time we are considering a position in its stock, my fundamental Due Diligence is resolved.
In twenty (20) years of working with StockCharts, and other services, I have identified six (6) Clusters of individual measures ( indicators ?), avoiding measuring the same data (co-linearity) redundantly. These measures, in the clusters enable certain probabilities to be formed about the stock under consideration. Different stocks respond positively to different clusters. Those stocks that are unresponsive, get dropped from consideration.
So far I have written a lot of words. Lets get to what they mean :
The stocks I pick, when I pick them, if acquired in a timely manner have a
more than even chance of making you money. Here is where it gets serious:
if you don't like my work for any reason, and you ask, I refund your monthly subscription fee, no questions asked.
We offer a stress-free, hassle free, environment for you to turn my 30+ years of technical analysis, and experience in the PM sector, into a way to profit.
It's a risk-free way to see if you can use our methods for your profit. You don't profit, we lose you and don't make money. Again, very simple.
Oh why do I do this instead of only investing myself ? The WHY is important to me, and probably you: Three specific incidents showed up fairly early in my education as a stock market investor. Each incident progressively drive it home that I was swimming with some hungry sharks, that regarded me ( my funds ) as a tasty snack. Lets cover them:
First, 1974, having determined that the monetary system was having indigestion, I found the South African Mining Co's ADRs made sense for investments. About half way along, there were nice profits. Riding them
I got my nose broken when the brokerage firm I used went bankrupt. Some of my stocks got sold out, others were frozen. When I got them cashed out nine (9) months later, most of the profits from that batch evaporated. Disturbing !
Moral: Brokerages will mislead you about their solvency, and will never tell you anything is wrong. Caution – have more than one brokerage, and if practical, hedge by splitting your funds. Today everything is so interconnected I don't even know if that could protect you.
Second, 1982, speculating thru Schwab & Co, I entered some call options in American Climax Metals, and they appreciated nicely. Until one day waves of selling hit this stock, leaving me with a very skinny profit. Later to find out, son of James Baker, Reagan's Secretary of State, had inside info that the company was to be bought by AMAX, and knew the merger price and cashed out all at once. Hell was raised and the SEC made him sign a consent decree that he would not do that again. No penalty, fines or jail time. Or forfeiture of profits. Morale:
Watch who is getting into trades, and if its a privileged / connected person, take you profits and leave.
Third - fast forward to 9/11, 2001. Up at 5:30 AM Alaska Time to watch the NYSE Open. I saw both planes hit the towers, and the Markets all shut down.
Two weeks before, figuring cycles, I went short several companies that looked to be in vulnerable sectors, Oil, Insurance, Transportation to name a few. Day before, Monday a bunch of stocks were acting hinky like they should not have.
Tuesday 9/11 I was monitoring to see all this happen. Again I had opened good positions and was in profit, and guess what? The markets shut down for three weeks, wiping out the profits I had accrued and no recourse for me.
That was the proverbial Three Strikes. Any trust I had in the system, watching the regimented suppression of gold and silver prices and treating mining sector investors as the enemy, convinced me I would never blindly assume I was being told the truth by anyone. My deep commitment to Technical Analysis of Stock Trends was already in place for two reasons. One it was impossible to cover enough fundamental information in the four or five thousand stocks; and two, Technical Analysis let me sniff out the trail of where money was going, rather than flying blind and dart throwing at the stock market page.
The burning imprint of losing money to insiders trading and impromptu events left me working to make a more level playing field for Mining investors, using Technical Analysis. Pretty much that vibe makes ordinary investors my tribe.
DG