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

[questionall_42]

I think people are treating this thread with far more seriousness than it deserves, and also are taking it off in directions which suit them.
The original premise put forward was to .. without any analysis.....randomly select one low priced stock in the mining sector and place $9500 on it, not look at it for 2 1/2 years, and see what the end result was.
In the spirit of this challenge I have scribbled down the codes of sub $1 mining stocks on a sheet of paper, and to make it truly independant have taken it next door to my neighbours Budgie cage. They have unerringly and without hesitation dropped their unique indicator on BTV .
So put me down for $9500 of BTV at yesterdays close of $0.135c..

PS... BTV... that seems co-incidentally to ring a few bells for some reason...
Yours in all sincerity
Kauri...

Finally a tip. Thank you budgie. Order in tomorrow. That way I don't have to think.

I was wondering did STC even know what caused the resource boom and why mining shares rosed so much for the past few years? And why fundamentally flawed to assume mining stocks will continue to do the same for the next 10 years?

I think this thread INSULTS the intelligence of this forum.

Oh wait, the cognitive biases, right.

I totally agree. STC, best of luck. Maybe try sportsbet as well.

 

[greggy]

STC,

I've got a dart board at home. Would you like to use it in picking winners. There's no need for T/A or F/A, is there? LOL!

 

[Wysiwyg]

Everyone trades differently and that is what makes the markets challenging.

The best posts I have seen on this thread are the ones alerting new traders to the infinite variables.

 

[adobee]

STC,

I've got a dart board at home. Would you like to use it in picking winners. There's no need for T/A or F/A, is there? LOL!

I often look at the share competitions at the back of the business section of papers I think it is the Sunday Telegraph. Not surprisingly the DART BOARD and PRIMARY SCHOOL KID followed by the astrologist seem to out perform most of the pro traders.

 

[cmh888]

It's not exactly turning $10k into half a million, but I have made impressive gains in short periods of time by selecting stocks according to set criteria, none of which involve charting. Saying that, I am now trying to learn the basics of charting. I try to determine the value of a share by looking at past, current and future variables including financials, contracts, political climates, competition, and more. I will soon add charting to this mix, but only out of interest. I believe I can make a reasonable prediction about where a company and share price is heading using research. In the past month I have bought OXR, QOL and CCI using this approach. All have already delivered excellent returns and I expect, from my research, that they will keep going. (CCI bought at 12c, closed today at 19.5 ... QOL bout at 32c, closed today at 42.5c ... OXR bought at $3.50, closed today at $3.94).

I think 'choosing any mining company and sitting on it' is a bad idea. I can list many many mining and/or exploration companies who have failed to come good over between 1 and 10 years so I certainly wouldn't have just put my money on any of them! Take NAE for example - $39 in 1996 to 0.30c today!

 

[dj_420]

I think this is the thread where Stop The Clock will make his return if MXR performs as expected!

I have had a look at MXR STC and I do think they look promising, I would just like to see some drill results first

 

[saichuen]

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.

I don't think charting/TA is meant to be 'controlling' as you may have perceived it to be? It's probably more about trend analysis I suspect.

And there's absolutely nothing wrong with just letting a stock run.The higher the better I would imagine. The only problem is which one will do just that?

While I don't admit that I'm fully into both TA and FA but I do rely on them to a certain degree to help me make as much as I can an informed decision. It's no guarantee but I think it's a good start and certainly better than nothing. Select on fundamentals, trade on charts.

That said, I had AIM at as low as 7.9c and sold off at 16c. I believe it has gone as high as above the 40s and now at around mid 20s. Sometimes I do wonder just like you. Perhaps I should have just let it be.

I like the fundamentals of MLX and it may be just the next winner on my watchlist.

Just my views.

Happy trading all!

 

[Ageo]

Take NAE for example - $39 in 1996 to 0.30c today!

Wouldnt that tell you thats a possible buy sign?

 

[vishalt]

Wouldnt that tell you thats a possible buy sign?

Yeah lol, defintely OVER-sold hey!

Stop_the_clock you're absolutely right, your way of trading has actually opened up my eyes, but not everyone likes trading in such a way.

I feel like its an art that blends in both technical & fundamental analysis (and a bit of good luck never hurts). In the case of your FMG example I think its the same as buying a lot of lottery tickets, you hit the jackpot stock, and like another forumer mentioned thats lucky because a lot of micro/small caps never actually end up taking off, even in 10 years time, no matter how rigorously you read the prospectus and fingered their corporate activity.

And sometimes what can be worse is watching your investment finally come to life, only to collapse to its origins once again because you're a bad seller.

Take Bendigo Mining for an example, my Dad played in it. It was a nice 20c in 1995, and then it catapulted to $4.60, hell impressive indeed, but my Dad, being a newbie and a bad seller at the time, didnt close the deal. The stock plummeted to 80c again in no-time, quadruple gain in no-time, still not bad, but the ghostly prospects of "I could have had 100x more but stupid me I didn't sell it" haunted him so he held on, the stock surged again to $2.80, and again, now, its collapsed to near 30c, 10c in 12 years lol.

Not everyone likes trading the same, I personally don't like holding stocks for over a month, I start chucking tantrums and screaming "its going down, its a bear market" or if they're up "market is gonna crash I SHOULD SELL!".

I like cashing my gains from my set amount of investment capitals and putting it in a locked bank account so I don't do anything stupid with it.

You think thats bad?

Me and dad have a friend who doesn't even know how to hold a stock - literally - if the stock is down TWO CENTS from where he bought it, he sells, and its not 2c on a micro-cap either. He recently bought Woodside at $41 (broke resistance), the stock went to $40.98 and he just sold, and he's basically lost a lot of money because of that inability.

 

[brilliantmichael]

Why not have a crack at Who Wants To Be A Millionaire and see how you go. That takes skill too.

 

[Ageo]

Has anyone every thought of incorporating the protective put strategy when trading long term stocks? i mean if you look at some companies dividend yield its more than enough to cover the premium for a at the money put option over a 12 month period (and if the share price moves up fast just close out your position and re-open a new 1). So basically you have no income stream as thats paying your insurance so you are uneffected by a drop in price but your exposed to potential upside capital gain (which is unlimited)? simple yet sometimes a very effective strategy for long term positions.

 

[BIG BWACULL]

Why not have a crack at Who Wants To Be A Millionaire and see how you go. That takes skill too.

Not Sure about that, Hang on i,m just gonna poll the MOB
(oh thats 1 vs 100) MOB, MOB, MOB,

 

[skating101]

Stop the clock did make an interesting observation, that we might be doing slightly too much over analysing of the market. I personally believe in solid fundamental analysis and then buy and hold while also observing the underlying funddamentals of the market, the sector and the company. We could be doing too much technical analysis especially over the short term trends and hence preventing us from making solid long term investments.

 

[renmc]

Hi guys,

im new to shares so i dont know a better place to go and im sorry its not related to the topic. I would like to know when is the earliest time to sell a physical sahre and still receive the options. If today were the ex date, can i sell them today and still be registered or do i have to wait 5 more days to the actual registered date.

thanks guys

 

[austek]

Miles of thread postings and no mention of Twiggy Forrestor, the guy who started FMG, the Company mentioned in post No1.

Before FMG he ran Anaconda Nickel (ANL) into the ground, promising production dates he never intended to achieve. He fought with the Unions and lost. Borowed Millions from the Yanks and lost all there money, in a failed effort to develop a zinc acid leaching process. Went belly up.

He then had the gaul to ask the AQmericans for cash to start FMG. With a lot of fan fare in the US they hailed him a mining hero, yet put simply he was just a farmer with the gift of the gab.

Installs oodles of confidence in investors that new him here through the mid nineties.

Have to hand it to him for getting FMG to this point in time though. My point is that when he started FMG, not many here would trust the guy.

BTW I bought a $10k position in SNX around 1998 for 29c each, they hit $20 in 2000 and although I sold a parcel at $10, most were sold at 65c a year later.

austek

 

[nomore4s]

BTW I bought a $10k position in SNX around 1998 for 29c each, they hit $20 in 2000 and although I sold a parcel at $10, most were sold at 65c a year later.

Ouch, now that's a good advertisement for trailing stops.

You did well to hold it all the way to $20.00 though, I don't think I could/would have.

 

[Ageo]

BTW I bought a $10k position in SNX around 1998 for 29c each, they hit $20 in 2000 and although I sold a parcel at $10, most were sold at 65c a year later.

austek

Correct me if im wrong but you bought 10k worth of 29c shares (34,482 shares) and they hit $20 which if you sold even half of those at that price it would have been over $348,000? Wouldnt some sort of stop loss even creep slightly into your mind???

 

[austek]

I really don't wish to go down that track. But I guess I led you to the question.

At the time, I was not a trader, but it sure gave me the motivation to become one. The investing was carried out by my FP, on my behalf as a client.

My only contribution was the s/fund money and that I was asked to investigate the company as a viable investment due to my experience with manufacturing plants.

I now know all about risk management as a trader, and you know why mine is much tighter than most.

The reason I mentioned SNX is that in my view "buy & hold is dead"

If you think you can pick the one in a thousand that bolts, forget it and buy a ticket in lotto. FMG would have been the most unlikeliest stock at the time it listed with Twiggy at the helm

 

[Julia]

Hi guys,

im new to shares so i dont know a better place to go and im sorry its not related to the topic. I would like to know when is the earliest time to sell a physical sahre and still receive the options. If today were the ex date, can i sell them today and still be registered or do i have to wait 5 more days to the actual registered date.

thanks guys

Do you mean "receive the options" or "receive the dividend"?

PS We're not all guys here!

 

[adobee]

I have taken this approach with BRO, it was suggested by my neighbour who knows nothing however the purchase price is 0.007 they are commencing in mining and other stuff and whilst they have minute chance of success there exploration has as much chance as anyone else. $1000 in good find and a bit of hype and the stock hits $3 428% increase $428,000 further finds hits $10 I am a millionaire... chances are slim company and directors look dodgy .. hey this could be the next FMG