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Gold/Mining/Energy : Donner Minerals (DML.V)
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To: Ed Pakstas who wrote (1270)12/3/1997 12:43:00 AM
From: Jimsy  Read Replies (1) of 11676
 
Ed - 2 ways to play some of the senior bottom-fish.

1,Trap the market
Place order to buy on stop just above the trading range.
Place order to short below the range.

When one gets filled cancel the other, and put stop protection on the one just purchased.

If gold tanks to $200, the stocks will go down and you are in a short position with stop protection. If gold goes up, all of those big name producers should recover about 30-40% and you are in a long position with stop protection just in case there is some more bad press like someone is gonna sell a ton or 2 in the year 2000 after a referendum that won't likely passs..

2) Other way is just to put buy on stops with limits. If your quality companies like Pacific Rim or Mar-West is going anywhere it will be at least a double. If they don't go anywhere you still have de cash in de bank. This way you can put buy on stops for quite a lot of companies cause you don't know which are going to move. If you just go and pick them up and they never move, you are stuck with them. Now if a takeover at a price above your limit occurs or there is a press release to cause a step up, you may miss out. I think of this as casting a net for bottom fish.

I'm not a financial planner and the above is proof of why!
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