Magna Mining (#MAG) and Hecla Mining (#HL), two of my large long term positions, took such beating that I put more money in and took even more beating-

But it’s ok- 20-30% volatility and 50% drawdown is normal in miners.

But never the less, I won’t lie that it hurts. I am usually quite calm but when I saw two of my large positions drop and drop-

I was like- Man…I wish I had more money and waited a bit longer to average down-

Oh well, lesson learned-

Still thankful that the portfolio is not devastated and that I have money in the bank account.

Only invest what you can lose-

Also, don’t capitulate and sell too soon.

I strongly believe that miners will come back given the inflationary pressure and the commodity supercycle.

Sprott Monthly also predicts that the gold has hit bottom or will hit bottom soon.

Now the waiting game, I may sell some puts the lower my cost. But I will wait until the volatility is lower-

As always, quite interesting times-

Long gold and silver mining (#AG, #MAG, #HL, #NEM, #GOLD).

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scr

-2% ouch!

Thankfully, I had cash. So I bought HL, MUX, AG when they dropped 3-4% and sold at 1% profit-

Not bad considering that I had to trade with my phone being outside. Very thankful for apps

I checked some gold miner bloggers/investors/YouTube and the consensus seems that gold/silver will likely fall a bit more before rallying sometime this year or 2022.

I hope it goes up but I am fine. I am holding for the long term and I am swing trading with 30% cash so- I am fine.

I will probably add more to the positions if I see gold falling to $1700 and silver to $22- The bottom is almost there-

Swing trading has been a blessing but I wish I could just buy and hold. Checking the market does take time and effort.

Still thankful for swing trading, making small amounts- I also wish I could hold stocks longer for 2-5% gains (3-5 days or 10 days) but it is so unpredictable these days so I am happy with 1-1.5% gains.

With the swing trading profit, I am buying more dividend stocks (just a bit).

A drop in gold/silver but I am fine thanks to cash- Cash is King

Thank You Jesus for another blessed day. Let us always be thankful and give You all the glory! Amen-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scr

My super gold/silver miner concentrated portfolio took a 15% hit!

Yup that is what happens when you have a concentrated portfolios with junior miners-

However, I did expect a wild ride- It’s just more violent than expected.

I am below 10% cash, as I though 3-4% declines would recover in few days but I was wrong-

Still I know I can hold on for the longer term, waiting gold/silver price to rise and then gold/silver miners to rise-

So patience is the game- And thank God that I have additional funds and a job- So I can hold on-

Lesson? Always have cash and a job-

I can’t even imagine the investors or managers who have large positions in gold/silver miners….ouch-

Thank Jesus for my job and other income as well (although very small, prosper and fundrise).

Back to my portfolio, I plan to ride out silver/gold mining- I may swing trade a bit but only if the market sort of settles-

Won’t be surprised if silver/gold miners drop another 10% from here, then I will be loading up the truck. Some money

in the bank earning minimal interest will come in for sure.

So still very long silver/gold miners. I am long Hecla Mining (HL), First Majestic Silver (AG), Mag silver (MAG)-

I also have positions on housing REITs (BRG, BRT, and IRT), which are doing fine. Wish I had put more money there but

oh well- mining had better risk/reward-

Won’t panic but just ride it out-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.

First, silver future is already up. Silver coin orders are surging- It won’t be long before silver miners will start popping- This is awesome for silver because silver price has been manipulated for so long-

However, the issue is that this is going to hurt JP Morgan, hedge funds, and brokers as reddit raiders go in and out of futures, options, and stocks. Driving prices up and down like rollercoaster from hell.

Somebody is going to get hurt. And it will be the banks, hedge funds, and brokers first. We already saw what happened to short sellers of Game Stop. Given that Wall Street has lobbied intensely on Democrats and Biden’s administration, Biden will have to act. Hey, they paid you.

It is likely that the SEC will jump on the Reddit raids and deem it as collusion or some sort of market manipulation. Then everyone who hates banks, hedge funds, and brokers will come and start a war. In the Democratic party, AOC, Warren, and Sanders will launch a crusade to crucify hedge funds. There are two big factions in the Democratic party, the socialists and the rich and corporate friendly folks. So there is going to be a big civil war. I mean it is already happening but it will get worse. Then the Republicans will jump in. Ted Cruz will just march in and draw more blood.

Yeah- it will be chaotic- Biden will be in the hot spot because he can’t piss off his donors but he can’t dump his base either.

I believe that Biden will side with the money. Of course, politicians love money.

This will expose how friendly Democrats are with hedge funds and corporations, which everyone should know by now.

By making his voters angry, the people will go on beast mode on their representatives further increasing the chaos. Online spamming and downvotes will occur very frequently. Politicians’ twitters will explode.

While all of this stuff is going on, the markets will be in turmoil as well. Banks and hedge funds will be afraid even with the SEC stepping in because there is no way to stop the rampage. There are so many ways to coordinate online and the brokers can’t shut down all the stocks that are mentioned or else they won’t make any money. And it is probably illegal.

Worst of all for Wall Street, the next stimulus will provide fresh ammunition- With fresh cash, the reddit raiders will go on a more crazy raids- And markets will be quite volatile- Because shorts will have to come up with the money for collateral and sell some longs- And this signal will feed into quant trading, which may amplify the magnitude. And then reddit raiders may jump on sudden drops and the whole thing may start again with multiple stocks.

Yeah, it is going to be a crazy year- 2021 may be crazy in its own way. January was just a teaser- Let’s see February…

No outcome is favorable to Biden. I believe that reddit raids will break the market and also break the democratic party. Also, people will be extremely angry once Biden sides with Wall Street. Thus, in 2022, it is likely that the Republicans will take both houses and Biden’s administration would be pretty much dead-

Things escalated so quickly….

The big problem is while the market is broken, many good firms won’t be able to raise financing effectively. Also, a crash is more likely with so much volatility and madness so a lot of investors may get hurt. It can get quite ugly-

So what should we do?

First, don’t join the reddit raid unless you know what you are doing. You may be angry but you still need that money. You may want to make a quick buck but you can lose it all. Also, hedge funds and banks are not stupid. They will collude in their own way and do something- And it might burn the individual investors very badly- The movement has already enough momentum to crush through but it might get bloody for everyone.

Second, you should definitely let your representatives know that Wall Street can’t play with their own rules forever. Hopefully, mounting pressure would bring some reforms to Wall Street.

Third, invest for the long term (at least three years). Going berserk on Game Stop is very suicidal. Going long on gold/silver miners is a great play. Miners have been always unhappy with banks playing games with gold/silver prices. You can invest in them and fight together the metal manipulation.

Finally, learn about investing and markets. Sophisticated institutional investors wins most times. But there are areas that sophisticated institutional investors do not have much edge over the average investor. For instance, in small caps, institutional investors cannot do much due to the small market cap. Also, institutional investors are more short term focused because of quarterly evaluation so they can’t hold for long but individual investors can hold on for sometime. Hence, learning to invest can be quite profitable-

As I finish writing this post, I am very curious what will happen on Monday- Let’s see what kind of fury, Reddit Raiders unleash-

Thank You Jesus for a blessed day- I am thankful for all Your love and mercy Amen-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.