How to turn $9,500 into $550,000+

[krisbarry]

Its quite simple and requires very little time at all.

There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.

I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just by being patient.



..

 

[Mousie]

Its quite simple and requires very little time at all.

There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.

I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just buy being patient.



..

Of course. That's what I did with DYL and MTN, among others

 

[SGB]

Good point S T C
but i actually enjoy mulling over charts for hours.
I'm actually quite bored today that there is no action.
Is there something wrong with me?
SGB

 

[nizar]

Its quite simple and requires very little time at all.

There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.

I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just by being patient.



..

Ok. If its that easy lets try it again. Whats your next pick?

 

[krisbarry]

Of course. That's what I did with DYL and MTN, among others

Well done, but then why do we get these T/A and F/A freak-shows charting things this way, that way and all ways an cutting other members opinions down for the hell of it. Not to mention the thousands of wasted hours learning all this garbage, and attending seminars and writing software etc.

Is it just about control and ego?

If you can chart it, then you have control over it?

Whats wrong with just letting a stock run?

I am beggining to change my views about T/A and F/A and trading as well. I think that too many members get caught up in the hype of it and forget about just buying in and holding.

 

[nizar]

Well done, but then why do we get these T/A and F/A freak-shows charting things this way, that way and all ways an cutting other members opinions down for the hell of it. Not to mention the thousands of wasted hours learning all this garbage, and attending seminars and writing software etc.

Is it just about control and ego?

If you can chart it, then you have control over it?

Whats wrong with just letting a stock run?

I am beggining to change my views about T/A and F/A and trading as well. I think that too many members get caught up in the hype of it and forget about just buying in and holding.

STC.

If you are keen on learning how to ride long term trends, your gonna have to do a bit of work; and ask yourself:

*How much profit are you willing to give back during the trend? ie. MaxDD
*WHere you will place your trailing stop? FMG is just one example and its not really statistically significant (definately not). See if you can filter out these stocks using some sort of entry criteria, and see over X number of stocks, using this method and some sort of trailing stop/exit, what the average profitability will be?

This will either require about maybe 10,000 hours manually, or spend about $2-3 on some software (if you are serious) and let the program do the calcs for you.

 

[nizar]

Even better get a copy of Michael Covel's Trend Following.

 

[tcoates]

Good for you. But there are a number of stocks that might not have done that well - BDG for example. Have a look at the monthly chart. I am not disagreeing that buy and hold is not a valid methodology but still have to look at FA or TA at some point in time, even if it is annually.

Tim

 

[krisbarry]

Ok. If its that easy lets try it again. Whats your next pick?

Thats the point...no specific stock, no charting, no F/A, just pick anything within the mining industry and you have just as much chance of making serious money from it, than your next door neighbour who has spent all year attending seminars, mulling over charts and F/A etc.

 

[nizar]

Good for you. But there are a number of stocks that might not have done that well - BDG for example. Have a look at the monthly chart. I am not disagreeing that buy and hold is not a valid methodology but still have to look at FA or TA at some point in time, even if it is annually.

Tim

Fine example, my friend.

 

[rico01]

Thats the point...no specific stock, no charting, no F/A, just pick anything within the mining industry and you have just as much chance of making serious money from it, than your next door neighbour who has spent all year attending seminars, mulling over charts and F/A etc.

I've bought a million FNT and 500,000 YML. Will they work 4 me

 

[nizar]

Thats the point...no specific stock, no charting, no F/A, just pick anything within the mining industry and you have just as much chance of making serious money from it, than your next door neighbour who has spent all year attending seminars, mulling over charts and F/A etc.

You didnt get the point.
Read my post #6 on this thread, again.

Just pick any random stock and hold it is not a viable strategy.

There are people out there like John.W.Henry and other trend followers that kick back during the day, and just phone their broker whenever their entry/exit criteria are hit.

These people are trend followers. By definition they never get the whole trend, but the middle 70-80%, get on after its established and leave after its finished. Get on late and get out late. Yet they dominate.

They dont attend seminars, they dont care about FA, they only care bout the price action and the trend. They dont look at charts their program tells them everything. Yet they outperform most of Wall Street.

They dont pick random codes either.

But obviously you are not keen on taking this seriously.
If you change your mind -- PM me.

 

[tech/a]

Kris.

100% spot on.

The problem is finding the 20c stock which goes to $30,and of course thats what everyone is trying to do pouring over Charts and Fundamental analysis.

If we knew or could identify the Tech boom DVT (Davnet) did just that.I remember a young broker who bought 100000 at 6.5c (He was doing the Securities Institute technical Analysis course with mysel and many others).
It got to $7.25 from memory and I remember years later contacting him and asking what he sold for---$3.85---on the way down!

Some of us did this in the recient housing boom (A sore topic to many).

With Uranium mining being supported by BOTH parties my guess is that you'll find this type of opportunity in there!

To add to your point.(One I just made on another thread).

You can turn mediocre profit into fantastic profit without charts/fundamental analysis or star gazing.

With the correct use of

(1) Leverage
(2) Compounding your profit against your initial capital.
(3) Pyramiding into Successful trades.

This has been done to a degree with techtrader---initially starting with $30,000,leverage 2.2:1 (Trading Margin) and compounding profit.
That $30,000 today is $360,000 after 4.5 yrs.
The method itself is only average in my view testing and trading a yearly return of 26-35%. Its the application of the above that brings the massive returns.

I agree pouring over analysis has little effect on the end result.
Application of other stratagies within even a moderately successful method will bring suprising returns.

 

[chicken8]

$9,500 in FMG 4years ago when they were 8c would've done the trick

$36 at close on friday?

 

[dj_420]

Ok. If its that easy lets try it again. Whats your next pick?

lol, i dont know about finding another 50 bagger! BUT what i have found is that stocks who are say a year or so away from producing allow investors a chance to get in early and allow maximum growth potential up until time they start producing.

examples

JML sp was 40 cents (or so) 1 year ago, it was a year until production and broker reports placed very little upside on valuations of the company, UNTIL they got close to production. sp now 1.30 which is a nice 300% for holders over that time.

CBH sp was 35 cents 1 year ago, endeavour had problems and didnt re-commence production until nov-dec, sp then went to highs of 84 cents (from memory).

PDN was $3 ish when trading just over a year ago and now over $8. again we didnt see real percentage gains until sp got much closer to production.

AGM 30 cents to over $1 on future production status

you could go on and on


i think these growth stories allow investors a lot of time to get in early before significant sp appreciation. i like these longer term growth stories, and of course the sp is usually discounted for a reason - been that the company can encounter many problems on the way to production. however if mgt are sound and keep the production timetable relatively well without huge costs blowouts and delays you will see a good amount of growth.

so my long term growth pick for now would be GBG, start producing hematite at years end and in 2010 will be producing magnetite. im not saying that GBG will see FMG type appreciation but from forecast cash flow etc we could see GBG trading over $10 in three years time (see GBG thread).

obviously any company wont suit, BUT after fundamental analysis of the company you should be able to identify whether the company has a resource large enough to warrant production, financial backing, institutional backing, sound mgt etc.

i would like to know other companies that are production imminent and trading at a discount to peers etc. perhaps even start a production imminent thread? so give us some good growth stories guys

i like what you stated nizar about capturing most of the trend, jump on breakout then jump off when train slows down!

 

[Col Lector]

I am sceptical as to whether charts are able to beat the human brain when it comes to securing the meatiest part of a stock/sector rally...
ie,
Latereral thinking to pick the trend early or before they appear
Confirm the trend potential by reviewing historical data (eg, supply/demand graphs; inventory & production movements)
Chase up authorative (&obscure) information sources to further confirm the potential & unfolding of the trend...Google and Google News very handy here.

Add balls....having the conviction to hold/add & follow through on your trend pick when others are wavering.

And tech/a I agree....use leverage to accelerate.

 

[Love Zn]

Thats the point...no specific stock, no charting, no F/A, just pick anything within the mining industry and you have just as much chance of making serious money from it, than your next door neighbour who has spent all year attending seminars, mulling over charts and F/A etc.

I wouldn't just pick any mining stock, as most are just explores with no hope of ever mining, spending loads of money drilling holes in the ground. And if we are talking another Uranium mine here in Australia, no extra mines have been approved and if and when they are, it would be 5-10 years before they would start producing.

i would like to know other companies that are production imminent and trading at a discount to peers etc. perhaps even start a production imminent thread? so give us some good growth stories guys

I think this is the key, if your looking at investing in mining stocks and wanting to make money. Your not going to get the full profit pontential, but if you jump on a stock, that are actually developing the mine, buying equipment, etc then in 1-2 years when they start producing, your profit should have grown.

This has worked for me with ZFX, KZL, PEM and SMY. I got on board JML a few months ago and AGM. Got off AGM when it was trending down, which I think it might for another week, but I think this still has potential and will probably get back on.

However I have lost on BDG - Bendigo Mining, I could have made a nice profit on them, but actually hung on too long, thinking they are still not far from production (I think they even had their first pour) and gold prices were still good, but reserves were adjusted down and now they have closed the mine. Thankfully I got off before hitting bottom, but still lost money in the end.

You may not have to watch charts, but the research is key and still keeping an eye on them for any developments (good or bad).

 

[insider]

That's interesting... my next door neighbor got a 50 bagger...

 

[the barry]

Its quite simple and requires very little time at all.

There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.

I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just by being patient.



..

You really are a long way off with this whole thought process and are relying on a number of assumptions for this approach to work. It is that sought of approach as to why people who do the research and charting will end up making money and you won't.

 

[Kauri]

Its quite simple and requires very little time at all.

There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.

I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just by being patient.



..

STC...
anything is possible with hindsight... when did you decide that a mining boom was underway.... would you have divided your $9500 between your other certainties at the time ...i.e LVL , BTV etc??