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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: cmg who wrote (40588)	1/30/2013 12:30:00 PM
From: Mike M2	1 Recommendation Respond to of 48092

Timing is very elusive so your strategy certainly has it merits. In addition, there is the opportunity cost of having too much capital tied up in a sector that is underperforming . My biggest winners were not in the gold mining sector. I do expect the gold market and the mining shares to go parabolic in a manic rise so there will be time to get on board at higher prices. It is a trade off between price risk and information risk. Waiting for a confirmed breakout reduces the emotional drain of seeing mining share open higher in the morning only to weaken throughout the day- good for trading but aggravating for long term investing. I do advocate trading around a core position in mining shares allocated according to one's temperament and circumstances. One significant advantage to investing outside the mining sector is the broad appeal and support by Wall St , the financial press and institutional investors. For example see how the stars of the natural resource sector fueled by the China boom story performed - CLF, WLT, FCX et.al from 2003- 2007. Look back to the love affair with tech stocks in the late 90s where the financial media worshipped CSCO, INTC, MSFT and more recently AAPL.

To: cmg who wrote (40588)	1/30/2013 12:46:49 PM
From: Rarebird	3 Recommendations Respond to of 48092

<<But if one buys 25% of a position and it drops 25% and then buys another 25% and it drops another 25% and then the stock drops another 25% and one buys 25% and it declines more.....................I might be puking.>> You hit the problem on the head as to why most people don't make as much as they can. Forget about how much you are down for the moment. All you need to do is identify overvaluation/undervaluation and scale in slowly. Only buy dollar amounts with what you can live with without getting uptight or bent out of shape. I've been acumulating GDXJ over the past year at $19.79, $19.53, $19.33. $18.86 (this past Friday) and at $17.51. I'm ready willing and able to buy more if new 52 week lows result. I've received a couple of nice dividends which have been nice. But I don't figure out what I am up or down every day. I don't care about those short term fluctuations. I want to be in when the inevitable strong move up takes place. I can afford to lose what I have bought in the Miners. But I am invested to win and win I will.