How I trade and invest in stocks and bonds by Richard D Wychoff - reading digest
Some experiences in mining stock
While investing in mining companies, Richard D. Wychoff employed professional mining engineer to give an expert opinion. In modern days, to invest in retailer such as Padini Berhad, perhaps it is good idea to talk to retail expert especially those in the clothing retail.
Another things that he did differently is to find out who are the interest behind he business, quoting his words "whose dollars are along side mine?". Based on this information, he went out to find out if the party has any pass successful record? Is the operation properly financed? What is the outlook for the metal ore? He asked all these question because he wants to go in early to "skim the cream".
He went on and gave an example of one of his trade with Magma Copper.He observed that the market action, seeing that the stock started at 12, go to 18 and settled at 15. At this price, he bought 200 stock and waited. He bought at another 22, only to watch the stock traded all the way to 29 dollars. He went out to find out what happened. He found out that the ore would be worth 200 dollars, and this would produce 55,000 dollars of profit in about 3 weeks. He did not realized the profit, instead he stucked to his research. He reasoned that the mining operation was manned by capable management and there is many insider accumulation resulting in very little public free float.
This campaign reminds me of one of the green energy counter I am accumulating.
Some experiences in mining stock
While investing in mining companies, Richard D. Wychoff employed professional mining engineer to give an expert opinion. In modern days, to invest in retailer such as Padini Berhad, perhaps it is good idea to talk to retail expert especially those in the clothing retail.
Another things that he did differently is to find out who are the interest behind he business, quoting his words "whose dollars are along side mine?". Based on this information, he went out to find out if the party has any pass successful record? Is the operation properly financed? What is the outlook for the metal ore? He asked all these question because he wants to go in early to "skim the cream".
He went on and gave an example of one of his trade with Magma Copper.He observed that the market action, seeing that the stock started at 12, go to 18 and settled at 15. At this price, he bought 200 stock and waited. He bought at another 22, only to watch the stock traded all the way to 29 dollars. He went out to find out what happened. He found out that the ore would be worth 200 dollars, and this would produce 55,000 dollars of profit in about 3 weeks. He did not realized the profit, instead he stucked to his research. He reasoned that the mining operation was manned by capable management and there is many insider accumulation resulting in very little public free float.
This campaign reminds me of one of the green energy counter I am accumulating.
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