Crazy as it may sound, I love this game of investing in the penny stocks and possibly some of the stock warrants trading on resource companies.
While some of you may believe this is a crap shoot there is actually some logical reasoning that could make you a substantial amount of money in the up coming bull market in the resource sector.
Higher gold, silver and copper prices are coming believe it or not.
Yes, gold has just plunged below $1300 for the first time in many months but as I write, it is holding around the .618 retracement of $1290 or so. True, I do not want to see much more of a decline from here and we really need to get back above $1300 ASAP.
So, my cautionary warning for you, is that you should be prepared to hold your positions for possibly 2 or 3 years. I do not believe this is unrealistic for the possibility of great gains.
There is no other investment sector other than the resources where an investor has the potential to make 500%, 1,000%, 2,000% gains or more.
Risk, of course must be managed by allocating your investment dollars into several different positions because realistically not all of your positions will work out.
Some may soar, some may tank, while others go nowhere.
Diversification will be your key to success, a little of this and a little of that.
In my services at http://CommonStockWarrants, my Gold and Lifetime subscribers
get to see my entire portfolio, which is just that, a little of this and a little of that.
Gold shares, silver shares, oil and gas shares and a manganese play on the
recycling of lithium ion batteries. Some of my positions are on the stock warrants trading on those companies and around 25% of my portfolio is invested in stock warrants.
If you are not familiar with stock warrants don’t worry. Many investment professionals don’t either, but stock warrants can greatly increase your upside leverage many times over.
With stock warrants it is all about time.
Where stock options can expire in months or up to 12 months, stock warrants can possibly have a life of 2, 3, 4 years or more. I am waiting on a new stock warrant to be issued on a producing gold company (over 200,000 oz per year), currently making money and this new warrant will have a life of approximately 6 years. Can you imagine in a great resource bull market this should be an ‘easy” 10 bagger.
My message for investors thinking about investing in stock warrants is simple: a warrant on what?
The underlying company is the most important issue as you must like the company in which you are investing.
Second, what are the terms of the stock warrants and when do they expire?
You will only want to focus on those stock warrants which have at least 2 years and preferably more before they expire.
The more time the better for the markets to pick up and for your company to execute on its business plans.
I have recently written a book for you, “The Stock Warrant Handbook, Your Personal Guide to Trading Stock Warrants” which is available for you, FREE, on my website.
You will find all of the information necessary to assist you on this journey, many examples, suggested brokerage firms (if necessary), everything!
To rap up this article, no one can deny that many dollars have been lost in the last several years in the resource sector, but there have been some great winners, several of which I have been an investor and all the details seen by my Gold and Lifetime subscribers.
This is not a game for sissies, not all of your investment choices will work out and yes, you could lose money, but friends, the potential gains could just make you wealthy.
If you are not a current subscriber but would like to join me on this journey, head over to my website and let’s started.
I started my services in 2005 and have successfully navigated a couple of bear markets. I have many subscribers that have been with me almost since the beginning, a few are Lifetime subscribers but some have happily paid their monthly subscription for many, many years.
Successful investing to all,