In our last blog, we gave a few criteria as to how to choose good companies to invest in. These comments were hidden at the end of the blog and were not readily visible. We think they are worth repeating.
THE TIME TO INVEST IS NOW
THE PLACE TO INVEST IS IN JUNIOR RESOURCE STOCKS that have strong growth potential.
• Companies that are proceeding towards actual mining operations on proven deposits.
• Companies that have discovered very good deposits that haven’t been fully proven yet.
• Companies that are really good but that the market has ignored.
• Companies in stable political places in the world. Companies is accessible palces with good infrastructure
• Companies with stable and proven management.
• Companies that don’t have strange share structures or other aberrations that allow shareholders to be denied their rightful share of profits.
• Companies that control their destinies and don’t exist by the grace of agreements of others who control their assets.
Don’t be fooled by cautions against so-called penny stocks. Look for real value. Never gamble on tips or on penny stocks that don’t have a clear and understandable and measurable value. For a real value stock to be discovered can mean a major increase in the value of your investment. Large cap stocks, with many exceptions, don’t double, or quadruple overnight.
FOREX
Forex is trying to gauge the change in currencies compared to other currencies of various countries.
If one searches the internet, or the advertisements of the brokerages, or of the trading platforms, there are more sites and ads for Forex trading than for anything else. There are innumerable chat sites talking about Forex, endless ads for Forex software that supposedly spot trends before anyone else, newsletters that guarantee spotting the next Forex big trend, lots of competition among brokers over commissions for Forex traders, and so on.
If you love Las Vegas, if you love gambling, Forex is the thing for you. For those that love to gamble, Forex is just the right place for you. Just remember that for every win, someone incurs a loss. The odds say that the big guys with billions at their disposal can affect the market far more than the casual observer. The odds are against the casual investor or the small investor. Big money and computers move the markets fast and illogically.
GAMBLING
We don’t like to gamble when the odds are against us. Forex might be exciting, but it is not the place to make money. For those that like to make money, remember our comments about buying value in junior strong stocks.
One more thing. There are thousands of sites on the internet that want to send you this week’s big stock tip on a penny stock. Most of these sites are sheer nonsense.
• They talk about a sudden jump in volume – in most cases the volume is because the move in price has already occurred.
• They talk about indicators – technical indicators work for large cap stocks with big daily volume. Junior stocks get big volume for other reasons. Don’t believe all of the technical indicators that simply don’t work in the junior stock markets.
• They talk about ‘tips’ – the surest way to lose money is to listen to tips.
• They talk about listening to insiders – any stock where insiders share confidential information, is conducting illegal activities. Don’t touch these stocks. They are likely just stock promotions.
Silver
Silver is undervalued. Based on historical comparisons to gold, the ratio is out of whack. The demand for silver is increasing – a lot. The supply of silver is not increasing.
In our next blog, we will point out many factors affecting the price of silver, that strongly indicate that silver has a strong move coming to the upside.
If you are looking for the next big thing, one of those that will move dramatically is silver.
