Wednesday, December 17, 2014

This Bill Quill to Chill

4 years, 897 post 316,694 page views and 500 Google bucks it is time this Bill Quill bows out. With me, I take my experience and  knowledge of what happens here in the Vancouver mining scene, my reference points,  my blog posts and my voice.

Hopefully you have learned a few things along the way.

Good luck to all who venture into the snake pit that is better known as the Venture Exchange.

I leave behind my first two blog post, my reasons on starting the blog and my rules.



Monday, September 27, 2010

12 essential junior investment rules to follow

To be successful at making money from junior resource stocks you need dicipline. This requires rules that you must follow religiously.

Rule #1: Do not be emotionally connected to your money. Your money has no emotions so neither should you. If you can master this you will find that you don't get the high from a stock that is rising and the lows from a stock that is in a losing position.

Rule #2: You can always buy a stock, but you can't always sell. This being said never hesitate to take some winnings off the table when they are presented to you. There is an old saying that goes" if you found twenty dollars on the ground would you leave it there anticipating that there will be sixty dollars around the corner."
Do not forget there is only one reason to buy a stock and a million reasons to sell it.

Rule #3: Never fall in love with a stock. It will drain your savings and break your heart.

Rule #4: Talk is cheap. Stock promoters always talk a story, that's their job. Always discount what they say. If they tell you the stock is going from 10 cents to a dollar, it probably won't get past forty cents.

Rule #5: Stay clear of the Over The Counter and the Pink Sheets in the USA. Most unscrupulous stock promoters that once operated on the VSE have moved their practice to these exchanges. Anyone that gives me a OTC stock tip, I usually stop them mid pitch and tell them I am not interested.

Rule #6: Plan your trade and trade your plan. Study the stock charts and buy when people have lost interest or selling for tax loss purpose. Sell when the drills are turning or the promotion starts. Don't worry if you really like the company's story you can always buy it again in a future date.

Rule #7: Do a bit of due diligence. Do yourself a favor research the management and see what their track record is. There are two types of management, one that uses the public company as an ATM forever issuing stock to pay management fees and to live a lifestyle. The other is a company builder. These guys have real experience in creating value for shareholders, stick with these guys. If they made money for people in the past they will have full support going forward.

Rule #8: The wall of cheap paper. Once again visit SEDAR and download the financial statements. See how many cheap shares, warrant and options are due. Nothing worse than walking into millions of cheap shares hitting the market.

Rule #9: All juniors have a cycle. A tax loss cycle, a money raising cycle, a news release and news vacuum cycle, winter spring summer fall cycle and a major distribution of paper cycle. Typically I like to buy my stocks in December. Not only is a tax loss cycle but a news vacuum cycle also. The saying "sell in May and go away" holds true for the most part. Stocks generally rise in the spring when companies are trying to raise money. If they plan a drilling program generally the results are not published until September or October. Leaving  a news vacuum over summer. But lets face it, any buyers with money are usually taking the summer off and not paying attention to the markets. Learn the yearly cycle of a stock and you can make lots of money off it.

Rule #10: Geo politics matter. Ask anyone who invested in Venezuela, Democratic Republic of Congo, Bolivia or Mongolia. Sure there can be some spectacular plays in these countries today but they can easily be taken away tomorrow. Try and stick to western friendly countries.

 Rule #11: Listen to the little voice. How many times have I told myself this "woulda coulda shoulda". Learn to recognize that instinct, it will save your bacon.

Rule #12: Open and trade through a Tax Free Savings Account (TFSA). This is the best thing that the Canadian Government ever did for the investor.

Rule # 13: When stocks make a large run up, the run up can usually sustained  a 3 day price surge before the buyers fatigue.

Tell it like it is: Introduction, history, strategy and caveats

 I started this blog to share my thoughts and strategies on trading junior resource stocks on the TSX Venture Exchange and the TSX.

Over 20 years ago I started out as a floor trader on the Vancouver Stock Exchange (VSE). The background picture for this blog was taken by myself of the deep end of the VSE trade floor once located at 609 Granville St. Vancouver.

After the VSE I went on to a role of corporate communications for public companies. I have promoted most sectors including oil and gas, gold, silver, base metals, industrial and agricultural companies. This gave me a strong insight into the cycle of junior investing.

I have stepped away from working in the industry and now I have a clearer insight into the mechanics of how and why the value of juniors goes up and down. Once you understand the cycle of how juniors work you can make some money from their price fluctuations.

As with most junior resource investors I have had my share of wins and my share of dogs. The trick is to limit the amount of dogs that you have in your portfolio.

I will post when and what shares I have purchased and or sold when I discuss any company. I will share my reasoning behind my decisions.  

My ideas are sourced from a variety of places, I have built a strong network of level headed brokers, promoters, successful individuals who share their insights. I constantly monitor the most active traders and news headlines for clues into the next possible winner. 

I buy and sell on a regular basis and may or may not have a vested interest in the companies discussed herein.

Please note that these are my investment strategies in high risk stocks. Please consult a qualified investment adviser before making any investments that suite your investment style.