Buy, Sell, or Hold...
Wednesday, July 26, 2006
One of the toughest parts when it comes to TRADING, I say
this because trading and investing are two separate actions, is when to buy,
hold, or sell. Another tough part is deciding what is a TRADE and not an
INVESTMENT. Well we have been watching as the speculative bubble in the small
resource stocks seems to have erupted, leaving many of our positions underwater
for the moment (some further beneath than others). Throughout this time we have
tried to develop a strategy for once the tide turns by following many of the
small resource stocks including those which we have no opinion on. We have also
added (in our personal portfolio, which happens to be real money for those
wondering) to what we view as investments at this time, including probably the
hardest hit of them all CanWest Petroleum (CWPC). We increased our holdings by
5% at a recent price of $4.26 believing that this was one of those opportunites
to take advantage of a sale on Wall Street.
Trading is part strategy, part timing, and part art. Luck
can be involved in it, but we do not recommend trying your LUCK at trading. This
is a strategy that will turn out costing you money in an overwhelming majority
of the time. With that out of our way let us state the Trading opportunity that
we currently see within the small cap uranium sector. The stock is Alberta Star,
ticker symbol ASXSF, which lays down our target. We believe that as the stock is
anywhere around $1.20 it is a buy, especially anytime after the 20th of each
month. We say this because each time we try to get back into this stock at an
attractive price, it shoots out of a logic buying area due to The Dines Letter
and its readers buying on his recommendations. We attribute this to the nearly
50% gain experienced over the past week in its stock, and regret that we did not
pull the trigger on this trade as we had done on previous occasions.
We believe that owning and holding positions in these
promising energy companies of the future allows for us to reap huge rewards in
the future, but at the same time we realize that there is money to be made today
when the opportunity arises. These are the type of opportunities we all need to
open our eyes to in order to take advantage of the lemmings who undoubtedly will
come back into the market once they have had ample time to lick their wounds and
see the upward movement.
add ASXSF at or below $1.20 for trading purposes.