{"id":212097,"date":"2016-01-29T14:49:59","date_gmt":"2016-01-29T14:49:59","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=212097"},"modified":"2016-01-29T14:49:59","modified_gmt":"2016-01-29T14:49:59","slug":"theres-something-worse-than-having-a-losing-position","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=212097","title":{"rendered":"There\u2019s Something Worse than Having a \u201cLosing Position\u201d"},"content":{"rendered":"

Editors Note from Dudley Pierce Baker<\/strong>
\nThis is a great article written by David Smith over at The Morgan Report and appearing on 321Gold. All of us can learn from this read. When finished, visit us at http:\/\/CommonStockWarrants.com<\/a> for alternative ideas and approaches to making money.
\n_____________________________________________________________________________________________________<\/p>\n

\"321\"<\/p>\n

 <\/p>\n

 <\/p>\n

David H. Smith
\nPosted Jan 28, 2016<\/p>\n

\"somethingworse\"
\nThere\u2019s something worse than giving up at the bottom…<\/p>\n

There\u2019s something worse than watching prices fall as you continue to add on the way down…<\/p>\n

It\u2019s giving up \u201cthree feet from gold,\u201d when if you had just stuck it out a bit longer, things might have turned your way.<\/p>\n

This tendency is part and parcel of human nature, and its effect is not to be underestimated. Way back in 1938, Napoleon Hill wrote about it in the classic book, Think and Grow Rich. Consider what his research uncovered. Said he:<\/p>\n

More than five hundred of the most successful men the country has ever known, told the author (Napoleon Hill) that their greatest success came just one step beyond the point at which defeat had overtaken them. Failure is a trickster with a keen sense of irony and cunning. It takes great delight in tripping one when success is within reach.<\/p>\n

When the precious metals make a turn to the upside that really holds, one of two things is going to happen. Either the price trades sideways for awhile, building higher highs and higher lows into a bona fide uptrend, or there will be a trident spike that shocks everyone, present company included.<\/p>\n

Either way, we\u2019ve been so conditioned to expect market failures to the upside into overhead ceilings that almost no one will believe it when things change.<\/p>\n

They will wait for the price of silver to rise where they hope and expect it to go before they jump in (above $20, $26 or $40?). They may sell aggressively into each rise until they end up with little or no holdings. Then the mostly empty bullish train will really leave the station, with the \u201cparade crowd\u201d standing forlornly at the gate, wondering what went wrong.<\/p>\n

Of course, no one can predict the future, and the price of silver might stop at say, $25. But by doing your homework and looking at the evidence \u2013 from the very accurate to the not-so-helpful \u2013 you\u2019ll be on the way toward making the right decision… for you.<\/p>\n

What\u2019s your own risk tolerance? What\u2019s your opinion of the best upside case?<\/p>\n

If you believe silver has a $2 downside risk, but see the potential on the upside as $10, then your perceived risk\/reward would be 1:5. You could be wrong. But if you spend time studying others who have successfully been and done \u2013 It\u2019s likely that you\u2019ll come out a winner if you decide to stay in the game. Not to mention \u2013 if \u201cbeing wrong\u201d means that instead of a 5x return, you end up with 10x… or more!<\/p>\n

Eric Sprott, who went from \u201cjust\u201d wealthy to perhaps billionaire status during the previous rise, worked through several up\/down cycles along the way. He no doubt had to ask himself the same questions you\u2019re wondering about right now. His conclusion?<\/p>\n

If you believe you\u2019re right; hold your ground. Normally there\u2019s a big payday at the end.<\/p>\n

Are you willing to \u201cstick to your guns,\u201d adding on a dollar-cost-averaging basis?<\/p>\n

If so, take encouragement from people who have gone through this before \u2013 who watched gold decline by 50% into 1976 \u2013 then saw it rocket 850% higher during the next three years or so?<\/p>\n

Or will you be swayed by the financial channel talking heads, as they trash talk gold and silver \u2013 just like they did from 2002-2011 while gold rose from $275 to over $1,900… while foolishly buying none themselves?<\/p>\n

Looking forward, the odds are much better than even the remaining perma-bulls can now imagine \u2013 that during the next few years, gold will change the first digit on its four-place handle several times, and silver will come to be defined by a three-digit price tag.<\/p>\n

If you\u2019ve lost your belief that the precious metals are going to rise meaningfully and perhaps move to all-time nominal highs while you are willing to wait for that to happen, then honor your conclusions and move onto something else.<\/p>\n

Investor Spirit Needs to Be Nurtured and Strengthened…<\/p>\n

But if you\u2019re still willing to be convinced, or just need a little more emotional support, consider this quote from Stu Thomson of Graceland Updates, an analyst who has established an excellent track record charting the movements of the precious metals, as well as the investor sentiment which drives the price. Recently he said,<\/p>\n

When an investor in a major asset class has draw downs, care must be taken not to break the spirit of that investor. Investor spirit needs to be nurtured and strengthened…The Western gold community is now entering the year 2016, as gold approaches another mighty support zone, this time at $1033. It\u2019s unknown whether gold enters that support zone, or rallies from just above it. What is known is that this is a major buying area, and a generational low appears to be in the works for both the bullion and the miners. Intestinal fortitude, and nurturing of investor spirit, are all that is required now.<\/p>\n

You can watch from the sidelines as a spectator while the crowd in the parade builds in size, or buy your ticket by holding and adding to a sensible stash of \u201chold in your hand\u201d physical gold and silver. Are you willing to not stop \u201cthree feet from gold\u201d?<\/p>\n

###<\/p>\n

David H. Smith
\nemail: inquiry@moneymetals.com<\/p>\n

David Smith is Senior Analyst for TheMorganReport.com and is a regular contributor to MoneyMetals.com. For the last 15 years, he has investigated precious metals mines and exploration sites all over Argentina, Chile, Mexico, China, Canada, and the U.S. and shared his findings and investment wisdom with readers, radio listeners, and audiences at North American investment conferences.<\/p>\n

321gold Ltd<\/p>\n","protected":false},"excerpt":{"rendered":"

Editors Note from Dudley Pierce Baker This is a great article written by David Smith over at The Morgan Report and appearing on 321Gold. All of us can learn from this read. When finished, visit us at http:\/\/CommonStockWarrants.com for alternative ideas and approaches to making money. _____________________________________________________________________________________________________     David H. Smith Posted Jan 28, […]<\/p>\n","protected":false},"author":1,"featured_media":212098,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[155,139,138,254,137,115],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/212097"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=212097"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/212097\/revisions"}],"predecessor-version":[{"id":212099,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/212097\/revisions\/212099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/media\/212098"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=212097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=212097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=212097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}