Bulls & Kangaroos

[OzzieTrader]

I want to share with you some of our trading methods to show how we do what we do.
This is a day trading or overnight hold trading method.
Announcement chasing.
I have 6 people reading announcements every single day between 9:00am and 9:50am.
We then gather in our boardroom and I choose the stocks we will trade that day, I have never chosen more than five and never less than 2.

So this is how it goes with mining stocks, one day I will also share Bio stocks method.

1. I treat all trading announcement on what I have learned over the years and what they will mean to the market. The content of an announcement made in the morning gives me a great lead into what it did for another company when they announced a similar thing. If it did a certain % for another company before then it will the same for the company announcing today.
2. Companies with tenements that have been great to them, increasing their exploration tenements are worth 15% green.
3. Companies that announce rock chips that are 5x what is expected out of any blue skies drilling assays are worth an extra 20%
4. Companies that announce drilling programmes who are well funded past that drilling program are worth an extra 20%
5. Companies that announce diamond drilling assays that beat previous results are worth an extra 35%
6. Companies that are hot, liquid and with great 20 day charts and volume momentum are worth an extra 50% to 100% on assays that prove depth, width and grade.
7. Companies that have assays for two commodities with highly elevated rock chips are worth 30% green
8. Companies that have shallow Air Core drill results that show both commodity’s are held in tight structures and certain depths. Like Gold 5% from 26 meters to 60 meters or the second commodity let’s say from 75 meters to 110 meters well they are worth 100% gains depending on the market cap and the history of the market liquidity of the shares.
9. We start now to go into what we call the expected results, for instance if the market has been waiting for an announcement about any results from a company it be rock chips or Dimond drilling assays results. You have to consider a 200 to 300% green day. It’s confirmation of what the share holders have done all the due diligence about and the confirmation just releases all that capital that they didn’t want to deploy plus all the fear of missing out capital. Building a position now is the gamble the new capital will take into the next announcement as the previous capital did.
10. Release of a PFS can be the most exciting because it’s worth as much as 1 years anticipation, it’s a hole years waiting and waiting, that payday announcement it can be worth as much as 300% if it ticks all boxes.
11. Announcements that push this company not only up against its peers but some times past them and we are looking at 350%.
12. Companies that make great hires and if the first decision that new executive hire makes an amazing announcement then it’s a nice 150% depending on the market cap, your now going to get 150% on a company that has a share price of $15 and a market cap of $15 billion. But anything with a market cap under $1 billion will surly give you 150%
13. Companies that raise capital at a premium or take on a well known strategic corner stone share holders can give you 75% to 125%
14. Take over targets, no matter what the premium of the takeover price is the stock will give you an extra 20%, once another bidder comes in you are now looking at a further 25%, if your lucky and a third bidder comes in then it’s a nice 75% increase to the original first takeover offer.

This is how we day trade, 90% of the time we will sell the trade if two conditions are met, one the exit price we planned or the forced exit we must take at between 3pm and 4pm. On some occasions we might hold the stock over night no matter if we are in the green or red.

The only announcements we day trade are price sensitive announcements and we love stocks we can buy between 7.5c and 10c, not a lot to loose really when the stock can go down by .001 per step down, but .005 on the way up.
My limits are between $25k and depending on my confidence that could be $250k for a very liquid stock. The most important this is not the getting in it’s the getting out, does the stock have the liquidity to get out the whole position.

My wife under my instructions gets to play trader almost every day with the guidance of one of my sons in law, I sometimes don’t want the profit so I ask her to sell our capital cost and use the rest of the days gains to add to any of our long held positions. If we need the gains for the day then she will use that to pay whatever she needs to pay.

All above decisions are mine and mine alone, my youngest daughter who is our CEO will one day take over this roll as I have been training her to take over from me. One of my son in laws will take over her CEO positions.

This method of day trading has so much more to it, this is the shortest I could make it.

Try it with paper trading and see how you go. The most important thing about all of the above is Time, you need time to prepare each day and the time to quickly study the previous liquidity of the stock to deter an the position size you will take.

Please ask any questions you like