I know I posted another Greg McCoach article but he says important stuff which may help out some who are confused by the machinations of the recent market turmoil...
Contrarian Value Investing
Greg McCoach Unveils One of HIs Secrets to Investing Success
By Greg McCoach
Thursday, April 3rd, 2008
I feel the need to once again remind investors that we need to stay the course in our junior mining shares, especially during times like now when everything seems so gloomy. This too shall pass, as I like to say, and our markets will be moving to new highs. The metals bull market is not understood by even sophisticated Wall Street firms, let alone the typical investor in America or the main stream media. For the most part they remain CLUELESS!
Don't panic when the chips are down, but learn from these experiences to become a better investor. As you do so, greater profits will come your way. After you have been through a few of the cycles, even the most hard-headed amongst us get better at when to buy and when to take some profits. This, in my opinion, is the secret to investing success, getting better at when to buy some and when to sell some.
The selling part is harder than the buying part. Discipline yourself to take profits off the table when the market is running hot. To survive the ups and downs of the junior mining share market you need to have a good sense of who you are as an investor, and a healthy respect and belief in yourself. Have confidence in what you are doing. This takes a tremendous amount of guts. It is necessary to break away from the crowd mentality.
My Contrarian Value Investing Philosophy
I remember when I realized who I was as an investor. I was 42 at the time and had just read J.P. Getty's autobiography. After reading the book, I realized for the first time that the only way to make big money at investing was to invest in things that nobody had any interest in, and waiting until the market cycled around. In other words, I realized being a contrarian value investor was the only sure way to make money over long periods of time consistently.
Since reading that book, it certainly has worked out for me. I looked around in 1998 at what was totally out of favor and the most out of favor market I could find was the precious metals and mining stocks. I immediately dove in and began to learn all I could. I started AmeriGold, a bullion dealership dedicated to educating investors on the issues of owning the physical precious metals. I also ended up starting The Mining Speculator in June of 2000.
It has been a wild ride, but one that has brought great satisfaction to me in helping others to make money. What is even better is that the best is yet to come for the precious metals and the mining shares. Stay tuned, stay focused and don't let this bull toss you off its back. It is kicking and bucking to knock as many of you off as possible. Hang tight, it will be worth the ride in the end.
Always remember that volatility goes both ways and after we have experienced the down side volatility (like now), look for the upside volatility to begin. It is definitely going to come again for our junior mining shares in the near future.
Good contrarian investing,
Greg McCoach
www.GoldWorld.com
