If you drink until you puke, we can never be friends. If you are 16, you of course need to puke. How else would you know where the puke Mendoza line IS!
After you have done that once, you should know THE next drink will send you to the gag ball. If you like puking, you definitely like leverage and if you like leverage, you will also puke financially at some point. Unlike getting drunk which feels bad for 24 hours, getting drunk on leverage takes a tad longer to recover when you have had too much.
I have never been forced to sell. I believe if you are forced to sell, you are less than an amateur, you are at least criminally negligent.
I know what forced selling looks like, because some of the stocks I am long have been through it. For the most part, I have been an innocent bystander. Take a look at POT, AGU, any infrastructure stock, most gold and silver stocks. Forced selling. It’s not about deserving, overvalued, undervalued…it’s about leverage, redemptions and cover your ass. Throw in a little fear and you have a financial puke stew.
Lately, I have seen my gold and oil stocks just get puked to smithereens. All that’s left are profits turned into losses and a stare in disbelief at the charts and broken resistance.
For the most part, I avoid looking at charts. In hindsight, they make sense, but to me they offer little predictive value. When forced selling is underway, stocks just go straight down with no rallies on little news. They just break all normal support and just obliterate yhe careless and lazy stops.
We are all guilty including me. It hurts.
In Canada, one man controls MOST of the flow these days – Eric Sprott . He has KILLED it for years in oil, and metals. I mean KILLED it. When you kill it for a few years…the money flows to you. I have to think that Sprott controlled most of the floats in many Canadian stocks through his funds.
He has no one to sell to right now. That’s why the charts look like they do. People don’t give a rat’s ass about your track record when the market sucks balls like now. Sprott is just another penny stock hustler who is caught up in his own momentum.
Stocks fall faster than they rise.
By the way, this will end. I just have no idea when so won’t play the game. Sit tight, read, watch, learn and build a list.