I pretty much knew the old days from 1999 -2006 were a ‘one off’. Those were the days I bought PM stocks and sat back fat and lazy and just watched the ‘ten baggers’ roll in. Looking back, it seemed like heaven.
I highly doubted such times would ever come again. At least, not likely too. So I adopted a new str
ategy to, I thought, the times we were now in. Perhaps a poor choice of nomenclature, but I called it the ‘Merc & Lurk’ Strategy. I was NOT going to simply buy and hold em. I don’t think the times are best for that. I expected wild swings, both up and down, as the PM’s fought against a growing army of paper pushers. I expect that we are going through the final stages of Gold & Silver fighting the final battle against Paper Debt. I thought, and still do, that being flexible might provide the best results. Up, Down, or All Around, my goal was to profit from the coming conflict.
25% in Pm stocks. Hopefully, buy them at sale prices even if not at their bottoms. ( I don’t think the bottoms are in on the miners)
Put those ‘ponies’ as I call em off to the side and follow the 10/20 cross as a guideline when to buy or sell.
The question was how to offset the ups and downs of the miners themselves? In the past I had a commodity account and used Future contracts to offset the stock positions. I also used Call/Put Options on the stocks themselves. They mostly worked, but the amount of research, time, and effort keeping up with it all was a real pain.
So this go around I started testing the waters of the ETF trade. Seemed simple and easy enough to do. And it has worked quite well thus far, for me. A little more effort than I first anticpated, but they are doing exactly what I was hoping. A force multiplier on UP days, and insurance for the account on down days. And a whole lot easier than keeping up with another account, or options.
What I am still experimenting with is what ETF (or ETF) will best suit my purposes. I still am looking at some others and will likely start trading some next week to give me a comparison of result. I will gladly report what, if anything, I discover works best. Win or lose, I promise to let you know. I am not here to try and impress anyone with my ‘Trading skills’. Those at best are laughable anyway. I am happy to share my efforts and experience. I like what I once heard in a AA meeting. ” Its not about saving face, its about saving my ass.”
Its all about finding a way, to grow and prosper in a ‘hostile environment’, where the banksters make the rules. The simpler I can make things, the better are my chances of success. Except for the ‘core holdings’ I do not wait to see what a couple years may bring. I rarely look more than a few days ahead. Hit & Run, stay flexible, try new tactics, explore various options, find out what works for me. Merc & Lurk. Taking on the Bankster Manipulators a day at a time. I get to choice the time and place to make my move. I never was any good at waiting in some hole, waiting for the round with my name on it to find me. LOL Take my chances on the run.
All of you guys and gals have been a great help and most of what I (think) I know, is because of these pages. Thank You.