Monthly Archives: December 2014

Miners are down in the muck!

My father was out visiting back in early October and while he was out here he asked me what I’m currently investing in.  I told him I’m weighting in on the mining sector as it has been absolutely getting crushed.  He asked me to send him an email with the ETFs we discussed (GDX, GDXJ, SIL).

In the email I sent him, I made sure to comment that although I am confident that the miners will have vary large gains in the long term future from where they are now, they are currently down in the muck and suggested they could easily lose another 20-40%.

I gave him specific instructions, that because this sector is so far down in the muck, not to put all the money he intended to invest into the sector right away, even though I think they are currently dirt cheap.  I gave him a plan to purchase into the declines as the sector would potentially continue to get beat up.

I sent that email on October 4th when the price of GDXJ was at $32.  Over the last 2 months, there have been incredible daily swings, with a 2-month low of $22.71.

If he listened to my instructions, he would currently have 75% of his investment for the sector invested at an average price of $26.60.

If another friend or family member were to come to me with the same situation, I would give them the same investment plan, but not with the same numbers.  The plan I would give that person would not be geared toward the sector or any specific price target.  It would be based on that person’s timing and entry point.

I get so frustrated when I read investment newsletters where the “guru” gives specific buy and sell points based on his own “guru” portfolio. People are always frustrated and I’ve rarely seen anyone actually achieve the results the “guru” gets.

If you come in late to the “guru’s” game plan, that investor may have a long term gain, but because you got in late, you lost money as the “guru” lost 20% in the last X amount of trades which were the ones you were involved in.  So the “guru” claims success while you lose.

In the future, I plan to release a membership section to teach my strategy that is built on creating success for your individual situation based on your individual timing and investment funds.  Join my newsletter to stay up to date and get notified when it comes out.