| vogeltron | 05-01-2016 04:23 AM |
Re: Stocks / Share & Daytrader
Quote:
Originally Posted by 123
(Post 767095)
Curious what sites do you use to do most of your research? You seem to invest in interesting industries, would be curious to know your process in figuring out what stocks to invest in
| To be honest I spend lots of time listening to as many people I deem to be smart as I can find on YouTube and reading lots of great articles. Also understanding that they have may certain bias, etc and keep that in mind. Still they have much knowledge to offer. You get that from a variety of sources and on top of your own research you can establish a very informed opinion.
My focus is the resource sector but from time to time I find things I believe are highly undervalued. As to why I have invested in places like Russia who got crushed and are now coming out of economic sanctions a place that everyone hated. Right now I am looking at different opportunities in Brazil because they are basically in a depression.
With regards to commodities and resources they are highly cyclical. They go often times through 3-5 year boom and bust periods. Where capital gets mis-allocated. Like right now in Oil due to the lower Crude prices many large firms have cut back on exploration and development. Exxon is the prime example their credit rating cut and cutting back on CAPEX. Meaning in the future there will become a shortage several years down the line. This does not necessarily mean the lows have passed for Oil but it gives you an idea of of an area to keep and eye on learn about the sector. This is how my view of Uranium is at the moment.
I am a cycles person more than anything. Trading stuff in mature markets is not for me. I like be a contrarian investor in things that I have an understanding of. In the resource sector a stock might drop 70% from its highs not because the business has changed but because the price of the commodity has fallen dramatically.
As mentioned I look for industries and also places in the world that have been crushed. Do as much research as I can making sure that business is still sound. I don't invest in things like Sears that are on deaths door-nail just because they are cheap or PeabBody coal because of pollution its a dead industry.
I invest in things I find where the price can go up and will go up. It is peoples negative sentiment or emotions that are killing it. Resources are very similar to tech in the sense that there is a development stage and a peak stage. They are no heirlooms to children, as good as they may be you may need to walk away at some point. Blackburry, Myspace, Aol, Netscape, Yahoo, Dell, all had days when they were king and are now fractions of what they use to be. Even eBay one near and dear to many of us.
You really are finding a Jockey (CEO) who can pick a good horse (Company/Project) in a depressed market and riding that thing as far as it can go before it looks tired and need to dump it not emotions attached. You must be willing to ride it out though. Like with Gold and Silver mining stocks I thought the bottom was in in early 2014. I rode many down significantly before the turn, constantly adding to my positions. Now it looks like a new bull market has broke out and its been nuts!!! Things I bought that had been down since 2013 are now positive. Positions I added to in November 2015 and Jan 2016 are up 100% or 200% respectively. There easily could be a pull back we will see. Nothing goes up in a linear fashion.
I can not stress enough truly digging into what you invest in and understand the sector. I take high risk high leverage positions knowing I could lose it all. But I am very comfortable with it. | 
