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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (65820)	6/13/2006 8:45:39 AM
From: ridingycurve	Respond to of 206212

Paul, you are correct. My typical holding period would be a few weeks to a few months from start to finish, but I would be reducing positions as prices moved up, or eliminating them if they hit stops. My perspective began to change in the first half of last year when I gave back most of my my hard earned gains. Dabum had given early warning that the odds favored a decline because big money was exiting the sector, but I ignored him. Eventually I realized that it was pointless to risk capital when market conditions were unfavorable. Because of outsized gains in the previous few years, somewhere around 80% to 90% of additional gains beyond our needs would eventually be to the benefit of the government through various taxes and not to us. Since the government was not going to share in our losses to the same extent, a new dimension was added to risk/reward considerations. As we both recognize, investment decisions involve many personal factors and financial considerations; and it would be a gross understatement to say that market mentality has changed since I began investing nearly 40 years ago. Big money rules the markets, and why would I fight the tape knowing that professional traders will be taking profits on the way up and cutting losses (as well as shorting) on the way down as surely as night follows day? They are simply practicing risk management.