Day: November 29, 2021

No Stop Losses…But 30% Loss Reviews and An Annual Portfolio

Thanks to all who sent feedback on my thoughts around Stop Losses and, more generally, when to sell.

I did more thinking, lots of it sparked by reader emails. As a way of running through all those thoughts, I’ve included quotes from various emails below and followed up with my thoughts. Scroll past the quote-response section to the end of the article if you just want to see the conclusion.

Stop losses are for people investing in extremely liquid equities.

Stop losses are for people who do not re-evaluate each position immediately after every news release, and every company presentation, and every macroeconomic development of note.

Stop losses are for people who do not frequently re-evaluate their thesis for buying a given company.

In other words, stop losses are NOT for people who invest in the junior resource space. People prone to using stop losses may have accidentally wandered into the resource space, but they do not belong here.

I included these comments as an example of the many responses I got opposed to Stop Losses. Such responses included points like the above: the fact that many juniors’ limited trading volumes means selling and re-entering isn’t always an option

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Stop Losses…Active Trading…Hold Periods and Rationales: When One Mailbox Question Triggers A Big Response

I have a question about your risk management. I observe that you use no stop-limits and see that you have few/many stocks in your portfolio which are -50%, up to -70%. Some weeks you sold some stocks with a big minus. On the opposite you have some winners. Your total performance is not clear for me and I don’t understand why you don’t sell earlier. For instance others are selling if the stock falls 20% below the price of buying but you hold them. From my point of view you hold it too long …

I am new subscriber and I really don’t want to lose my money and therefore I am a little bit concerned about your risk management.

For instance why you still hold “Visionary Gold”? More than 50% you lost within the last two months. At your service I miss an active money management or maybe I don’t see it. As subscriber I have a little bit the feeling that you are too close with the mining companies and the service sounds more like marketing for them. So my feeling is that they are your “real” clients … sorry to saying this but I have this

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