Make The Right Choice
A lot of concerns are creeping onto the markets that have been here before. We are no stranger to war and the crisis in Europe seems to be a never ending story. Of course their trouble could spill out and this could cause yet another panic in the markets. If its not an earthquake then its a nuclear meltdown or and energy crisis.
There will always be something negative if your looking for it. The days of aggressive stock traders seem to have faded away. Now we have chat rooms full of university students, grandmother's and office workers spending a bit too much company time logged in to the on line trading account. Everyone wants that 7 figure account by finding the next 10 bagger in the markets. They are there but its almost like catching lightning in a bottle. Certain sectors are hotter than others right now and I myself like gold. I wrote some time ago that if you took 10 gold juniors and put $1000 in each one you would probably have at least a 50% gain by the end of the year. That's a bit better than the mutual fund your bank is trying to sell you on. Of course you have to find small floats, cash in the bank and companies with current drill programs. There are a lot of dead gold juniors as well that are almost like a shell looking for a deal to fold into it.
When times are tough people usually turn to gold. The price of gold has been on the rise and some analysts are calling for $5000 an ounce gold soon. That seems a bit high and I think $2500 will probably be the next resistance point where we hover and the markets correct themselves.
Getting back to trading and the types of traders its interesting how old traditions still remain when it comes to selling. I have never been a fan of go away in May and if you ask most investors they are not sure why they should go away. We have such a globally connected commerce these days that I can invest in a gold company drilling in the rainy season half way around the world and everything is traded these days so I think its game on all year round. There are sharks in the markets and they are always looking for a deal. They would love to talk you out of your long position and may even try to convince you of an approaching crash. From the moment some traders buy they have fear. They wonder if they paid too much and if it was a good time to buy even though the shares are already in their account. If the stock starts to go up their fear manifests itself to the point where now the investors is worried this may be the only gain they ever see and then panic sell. Remember there is usually always a buyer for each seller. Each time you buy or sell you should ask yourself if you can deal with the after effects which include a total loss or that the stock you just sold has been offered a huge premium buy-out right after you ran away with a 5% profit.
Try to take all of the emotion out of the trade itself. If you look at the funds you have as money you are investing for your most important client and can not afford to just lose it by a high risk move then you will probably make some more educated trades. Due diligence is not something accomplished in 5 minutes and remember that reading stock chat boards can give you some interesting positive and negative feedback but everyone there is out to make money. No matter what you read you are guaranteed there is a motive behind each and every post. I think the markets are in a state of flux. There are a lot of bargains and too many people are worried they will be the last to sell so they would rather move on early than too late.
Always buy or sell because its the right thing for you based on all the information you have gathered. Don't react to hype or bashing, either one could push you to make a move you will regret.
Here are my top five mining stocks to watch for this fall.
Kesselrun Resources Ltd. is a newly formed Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration experience -- with particular expertise in Northwest Ontario -- as well as significant capital markets and business know-how.
Our flagship Bluffpoint Project consists consists of 103 mining claims covering 22,576 hectares in Northwest Ontario's Wabigoon Subprovince, host to several recent gold discoveries such as Osisko's (TSX:OSK) Hammond Reef Project and Rainy River’s (TSX:RR) Rainy River Project. Accessible year round by a network of well-maintained logging roads, Bluffpoint offers low cost exploration in an emerging prolific gold district.
RED EAGLE MINING
DEVELOPING THE SANTA ROSA GOLD PROJECT IN COLOMBIA
Mining at the Santa Rosa project pre-dates the 16th century. Red Eagle has delineated over 60 historic sluice workings and over 400 adits and shafts which have been mined more recently. 17,000 metres of core drilling have been completed to date at Santa Rosa with mineralised intercepts averaging 2.1 g/t Au. A 5,000 metre third phase core drilling program delineating the near surface oxides commenced in June 2012. http://redeaglemining.com/
Mahdia Gold Corp
Mahdia Gold gets its name from a popular resource rich mining town located in central Guyana. Historically the central Guyanese region was made popular by the Omai gold mine. This mine produced approximately 4.000.000 ounces of gold from two open pits. Having identified the potential of this region, Mahdia Gold Corp. has acquired three compelling gold bearing concessions, namely, Omai, Tiger River and White Creek. The company's vision is to be an aggregator of world class gold properties in the country of Guyana. This vision includes maximizing shareholder value and Mahdia Gold Corp. being the premier destination for investors looking to invest in the precious commodity known as gold.http://www.mahdiagold.com/
Inca One Resources Corp. (TSX-V: IO) is a Canadian resource company focused on acquiring and advancing properties in the South American country of Peru.
Peru, which was home to the Inca Empire, is currently the largest gold producer in South America, hosting mines which produced up to 26 million ounces of gold. A highly mineral-rich country, Peru is the largest producer of silver and 2nd largest producer of copper worldwide as of 2009. Inca One is advancing its principal asset, the Las Huaquillas Property in northern Peru. The project consists of 9 mineral concessions totaling 3,700 hectares in size. http://www.incaone.com/
Starcore International Mines
As a growth-oriented mining company, Starcore is focused on continued mineral production and development at our San Martin Mine, while aiming to identify, acquire, and develop additional high-quality gold and silver properties. Starcore intends to remain a leader in the Mexican mining industry by combing an unwavering commitment to social and environmental stewardship with a proven mineral production and exploration model. With significant land holdings, totaling 12,992 hectares, San Martin maintains strong operating reserves in addition to excellent exploration potential.Video Link