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<p>[QUOTE=&quot;Rono, post: 1111225, member: 6492&quot;]Howdy,</p><p>&nbsp;</p><p>I&#039;m with many of you in that I have both a core investment holding of bullion and a portion that&#039;s speculative.&nbsp; This means that my core holding really isn&#039;t for sale.&nbsp;&nbsp; In these days of Quantitative Easing and a global race to see who can debase their currency fastest and furthest, having a core holding of precious metals is crucial to my sleep at nights.&nbsp; Like my grandkids with their stuff animal &#039;bed buddies&#039;, my bullion is MY bed buddy.&nbsp; ;-)</p><p>&nbsp;</p><p>With my speculative holdings (these are mostly in paper and securities (mutual funds, ETFs, stocks)) it&#039;s just another momentum investment.&nbsp; I&#039;ve been a momentum investor for years and it seems to work best for me.&nbsp; By this I look for a trend of some asset class that&#039;s diverging from the pack and developing a strong and stready trend line - and overweight it a bit in order to help my overall returns.&nbsp; I can have a fairly diverse and well rounded overall portfolio and match the returns of the market, but with a momemtum play I can take a few coins, overweight a trending sector and thereby beat the average market returns.&nbsp; Now,&nbsp; being a coin collector, I was aware of gold and silver breaking out back in 2001/2002 and therefore able to climb aboard early on in the trend.&nbsp;&nbsp; In general, I try to &#039;scale in&#039; and if need be, scale out.&nbsp; </p><p>&nbsp;</p><p>For example, when I find a trend that looks promising, I&#039;ll make a small play with say 25% of my intended total play and watch to see if it works (i.e. makes money).&nbsp; If it does, I&#039;ll add another 25% and watch to see if it works.&nbsp; If it does, I&#039;ll throw in the other 50%.&nbsp;&nbsp; And I&#039;ll watch.&nbsp; Now if my initial play doesn&#039;t make money I will never, ever add to it.&nbsp; And if it loses money, I&#039;ll have a mental stop loss of let&#039;s say 10%.&nbsp;&nbsp; And this same 10% mental stop loss applies to a running trend.&nbsp;&nbsp; If there was to be a pull back of 10%, I&#039;d back off perhaps 25% of my speculative play and watch for further erosion.&nbsp; If it continued to slide, I&#039;d scale out further.&nbsp; </p><p>&nbsp;</p><p>That pattern is that you add to winning plays and subtract from losing plays and never the opposite.&nbsp; The opposite, or trying to buy dips and all, is where the huge risk lies.&nbsp; It&#039;s akin to playing &#039;double or nothing&#039; and normally end badly.&nbsp; </p><p>&nbsp;</p><p>Note that his is exactly how I play blackjack - if I win, I increase my bet by a percentage - say 25-33%.&nbsp;&nbsp; I might go from 2 units to 3 and if I win again, to 4, etc.&nbsp; And I will contnue to use this partial parlay until I lose a hand at which point I start over.&nbsp;&nbsp; I never, ever, increase a losing play.</p><p>&nbsp;</p><p>Now with the silver (and gold) markets as relates to my speculative play THE TREND IS YOUR FRIEND.&nbsp; Let me repeat, The Trend is your Friend.&nbsp; When you&#039;ve got the greatest bull market of our lifetimes staring you in the face, YOU RIDE IT.&nbsp; You hang on with fingers and toes and you ride the sucker until it stops.&nbsp; &nbsp; If you get heebiejeebies and can&#039;t sleep, take some profits by all means so you can sleep, BUT YOU KEEP RIDING THE BULL.&nbsp; Don&#039;t anticpate it stopping - wait until it actually does.&nbsp; And don&#039;t listen to the gd noise and talking heads on TV.&nbsp; Just ride the bull as long as its running.&nbsp; &nbsp; You don&#039;t have to be the first on a trend or the last off - to make a lot of money if it&#039;s a decent stready trend.</p><p>&nbsp;</p><p>Any my friends, this bull market in gold and silver that started in 2001/2002 hasn&#039;t really even blinked.&nbsp; </p><p>&nbsp;</p><p>So, at what point will I start selling silver, WTF knows?&nbsp; When it pulls back over 10%.&nbsp; This means it would be back down at the $27-28 range and gold around $1250.&nbsp; </p><p>&nbsp;</p><p>just some thoughts about my madness,</p><p>&nbsp;</p><p>peace,</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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