Chun Yan Koay asked 7 years ago
just joined today, so if I am going to do trading/speculating on gold, is it the latest content should be the most good entry price for me now?
pcwong Staff answered 7 years ago
Welcome to IFS. The miners price are still very much depressed. if you look at the last two stock pick sessions on the laggards, ie: IAG, AUY and KGC there is a chart of the AUX vs Gold ratio which showed the potential for miners to go higher. BTG is still a good entry price at around US$3.21 as by 2017, their Mali mine will increase production tremendously. As for the recent Canadian listed stocks, the transaction cost for Canada stocks is rather high. So you may like to by Brazil Resources and First Mining Financial in the US OTC Market which is much cheaper. KNT Mining unfortunately is not listed on the OTC market and only in Canada For pure silver play you can still consider Endeavour Silver (EXK) which is about US$4.94 now. . Gold and silver will likely to go higher due to the various financial stress in the market. Do read some of the articles I wrote on the FB page of Invest In Foreign Shares which I have listed some potential areas for a major crises, covering financial, economic and geopolitic. Hope this helps.
Chun Yan Koay
replied 7 years ago Thanks PC. Regarding the latest disclosure by your exit position on KGC, normally do you use passive exit criteria(like break certain support level) or active exit criteria(eg: earn 50% or 100% from entry price)? or using any other KPI parameter as your exit decision? Please advise. While at same time, you mentioned about good Q2 result of BTG, may I know for US listed stocks, normally you grab its QR result from US SC website? Thanks.
pcwong Staff answered 7 years ago
I exited KGC not because the stock has no more room to advance, but partly due to a need to divest my investment into another venture.
I will often hold between 1 – 3 years where investing for the long term but I do trade occasionally with holding between of 1 -3 months.
Exiting is rather subjective. If it is a trade I will exit between 20% – 30% profit unless the share really sucks then I may exit at lesser profit level. If the share price falls, I set 20% drop as a stop loss. This is because foreign stock volatility is high.
For long term hold, I will exit in batches, for example 100%, 200% or 300%. The bigger portion will be at 100% so that I regain as much as my original capital as I possibly could while letting the remaining ride the uptrend.
But you have to look at the trend. For example if the stock has run up to 40% gain in a year but recently as sown signs of fatigue, meaning it is rather stagnant for many weeks, then perhaps it is best to exit. This hold true for many of the non-miners shares.
For the miners, I believe we are in the first leg of a bull market. There is still plenty of upside, but there will be volatility at every point. So if you bought in the very low, take some profit when the shares touched new 52 weeks high and wait to enter again.
Every stock that I own I will always read the QR for signs of weak earnings which may allow me to plan my exit.
For US stocks, it is advisable to go the company’s website to read the QR as well as the Investors Presentation Slides, and also listen to the earnings call or read the transcripts. as this is when the analyts will bombard the management with many questions.
Hope the above helps.