Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18
Which UK Best Theme Park - Alton Towers vs Thorpe Park vs Lego Land vs Chessington World - 12th Aug 18
USD is Rising. What this Means for Currencies and Stocks - 12th Aug 18
Hardest US Housing Market Places to Live - Look Out Middle Class - 12th Aug 18
America’s Suburbs Are Making a Comeback - 12th Aug 18
Stock Market US Presidential Cycle, Seasonal Analysis and Economy - Video - 12th Aug 18
Yield Curve Inversion and the Stock Market - Video - 11th Aug 18
Land Rover Discovery Sport 1st Dealer Oil Change Service - What to Expect - 11th Aug 18
How to Setup Webinars and Use Them to Overcome the Barriers in E-Learning - 11th Aug 18
Big US Stocks’ Q2’18 Fundamentals - 11th Aug 18
Dow Stock Market Trend Forecast 2018 - 10th Aug 18
SPX Testing Its First Support Level - 10th Aug 18
Dreaming of a "Comfortable Retirement" on a Public Pension? - 10th Aug 18
The Forrest Gump of All Future Democrat Election Losses - 10th Aug 18
More Uncertainty as Stocks Got Closer to January Record High - 10th Aug 18
Gold and Silver Kill Zone - 9th Aug 18
Even More Cracks in the Gold Dam - 9th Aug 18
Ignore the Stock Market “midterm election year”, Which is “supposed” to be Weak - 9th Aug 18
Stock Market Trend and Volatility Analysis - Video - 9th Aug 18
Tips on Maximizing Small Serviced Offices Space - 9th Aug 18
VIX’s Collapse is Bullish for VIX and the Stock Market - 9th Aug 18
Vestles Platform Offers Several Key Trading Tools - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 2 - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 1 - 8th Aug 18
Stock Market US Presidential Cycle and Seasonal Analysis - 8th Aug 18
Is the Stock Market Correction Over? - 7th Aug 18
Yield Curve Inversion and the Stock Market - 7th Aug 18
Stock Market Elliott Wave Analysis and Forecast - Video - 7th Aug 18
Trade War! Win the Economic Hostilities Against the Chinese - 7th Aug 18
Technical Analyst Sees Silver as 'Oversold' - 7th Aug 18
Alex Jones Banned! Will Unapproved Opinions Be Censored Off the Internet? - 7th Aug 18
Gold and Silver Stocks On the Verge of the Next Major Decline - 7th Aug 18
First Time Buyers Need to ‘boost the affordability’ of Their Move Alone  - 7th Aug 18
Long Term Care Homes as an Investment are Heating Up! - 7th Aug 18
The Exponential Inflationary Stocks Bull Market - Video - 6th Aug 18
Land Rover Discovery Sport Oil Change Service Dash Warning Message - 6th Aug 18
Restructuring of Western Economic Power - 6th Aug 18
Stock Market Trend and Volatility Analysis - 6th Aug 18
Stock Market and Economy False Narratives That are Just Wrong - 6th Aug 18
VPN – Is It Worth It? - 6th Aug 18
All You Need to Know About Umbrella Companies - 6th Aug 18
Why China Lost the Trade War Before it Even Began - SSEC Stocks Index - Video - 5th Aug 18
Dow Stock Market Elliott Wave Analysis - 5th Aug 18
Iran's Rial Currency Is In A Death Spiral, Again - 5th Aug 18
IMF Produces Another Bogus Venezuela Inflation Forecast - 5th Aug 18
Gold & Silver Precious Metals Monthly Charts - 5th Aug 18
Time to Position for a Decade-Long Bull Market in Natural Resources - 5th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

Is Your Stock Portfolio Under Water?

Portfolio / Learning to Invest Jul 14, 2009 - 11:39 AM GMT

By: Dudley_Baker

Portfolio

Best Financial Markets Analysis ArticleLet’s be honest, these are very challenging times to be an investor. Regardless of all of the positive spin from CNBC and from many newsletter writers and analysts this has not been the best of times to be ‘in the game’.

For those of us who are ‘in the game’ the question now is what do you do? How do you proceed today? How can you limit your risk going forward?


Virtually every investor took it on the chin last September - October. That includes me as well but I have approached this setback in my portfolio as an ideal time to take advantage of the numerous opportunities that my service database has identified and, as such, have experienced numerous successes recently. Yes, I put my money where my mouth is.

What do you do?

I suggest that you evaluate your current stock portfolio to determine if there are any stocks that should be sold which would allow you to re-invest the monies in opportunities with more potential?

In my case, I have many small positions which are selling for only pennies per shares. If I sold them I would receive almost nothing and of course, we still have to pay commissions; therefore, I have chosen to hold my positions in these companies. If these companies are able to survive, I am ‘hopeful’ the share/warrant prices will increase with the markets in the next year or so and I will be rewarded for holding my positions. If I sell these positions, the game is over. I will have taken a major loss with no chance of a recovery and I will have received very little cash had I sold these positions to re-invest. I am very comfortable taking this position, but you must make this decision for yourself.

How do you proceed today?

Each investor must have an opinion on the overall trend of the market. I am now speaking specifically about the precious metals sector, gold and silver.

I am more confident than ever that we as investors are on the right track by investing in gold, silver, the junior mining sector and specific long-term warrants.

This confidence allows me to be patient and still sleep well at night. Sure I would have loved to have been rich yesterday, but my patience will get me there.

You must decide for yourself, not relying on me or any other analyst or newsletter writer, your own level of confidence in the markets. Remember, the markets usually do everything possible to trick and deceive investors, throwing them off the horse before the big rise. Many times investors sell out early out of frustration and thus are not ‘in the game’ at the time of the big up move.

This is not easy folks, but you must have strong beliefs that we/you are on the right path.

If you have additional monies to invest today, you should consider averaging down on some of your favorite positions and/or entering new positions which have a great probability for success.

How can you limit you risk? 

You can limit your risk by investing less. This is not meant to be a wise-ass answer so listen up.

Strange as it may sound to you, using long-term warrants or perhaps LEAPS can limit your risk exposure to the markets.

In a very simple illustration, let’s take one of the major gold producers which trades on the TSX and also the NYSE and closed Friday at C$49.00. They have a long-term warrant which closed at $19.50. This warrant has over 4 years of remaining life and will greatly outperform the common shares if our rally unfolds in the coming months and years. There are also numerous LEAPS available on this company which will expire in January 2011.

In effect, we/you have taken a position in this major gold producer for only 40% of the cash outlay as opposed to buying the common shares and our potential gains will be much greater. You have thus greatly limited your risk my investing a smaller amount of monies.

One cautionary note: the warrants and LEAPS are thinly traded on this particular company we advise the use limit orders in the placement of your trades.

In our service, in addition to our warrant database, we also have a separate table of all of the natural resources companies with Options and LEAPS - a valuable resource for all investors.

Our current market view

Even though gold and silver have been hit hard over the last few weeks we believe the longer term uptrend is still intact. There is a good probability we will see higher prices in the coming days and weeks. But we need gold to break thru $1,000 to really get this party going again. A solid break of $1,000 will attract new investors around the world and then it will be ‘game on’.

To Summarize

These are challenging times and while we may not have all of the answers we strongly believe in our current positions and have the patience to ride out our convictions and for numerous reasons (another future article) we see a top between January 2011 and January 2012 in the precious metals sector. Can you hang in that long? That is a question only you can answer.

For those readers unfamiliar with our services:

  • PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
  • InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.

We encourage all readers to sign up for our free weekly email.

Dudley Pierce Baker
Guadalajara/Ajijic, Mexico
Email: support@preciousmetalswarrants.com
Website: PreciousMetalsWarrants
Website: InsidersInsights

Dudley Pierce Baker is the owner and editor of Precious Metals Warrants and Insiders Insights. Articles are written by Dudley Baker along with contributing editors, Arnold Bock of Mendoza, Argentina and Lorimer Wilson of Toronto, Canada. PreciousMetalsWarrants provides an online subscription database for all warrants trading on junior mining and natural resource companies in the United States and Canada and a free weekly newsletter. InsidersInsights alerts subscribers when corporate insiders of a limited number of junior mining and natural resource companies are buying and selling.

Disclaimer/Disclosure Statement:PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

Dudley Pierce Baker Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules