RE:RE:RE:RE:Down 6 % to $6.15 USD with gold upI get tired of this debate between longs and traders, since their interests are basically the same. There's no reason you can't be both long and trade, and it doesn't require a crystal ball. (Or balls of crystal.) I'd be interested in hearing how others manage this, but for the benefit of investing newcomers, one simple, automated method is as follows:
1. Establish a solid core position - preferably a set percentage of your portfolio - and put it aside for a predetermined length of time. (In the case of PVG, I suggest no more than 5-10% and 4Q/2016 at the earliest.) Don't touch your core position unless fundamentals change significantly.
2. When the stock appears to be oversold or basing, gradually accumulate additional shares specifically for trading. (Maybe another 25-50% on top of your core position.)
3. Wait for the stock to get overbought and sell your trading shares using stop loss orders, all at once or in tranches. (An easy way to know when you're getting over-extended is to simply maintain your stock's set portfolio percentage.)
4. When the stock retreats back down to your base price, reload and repeat. (If you like, use a portion of your profit to top up your core position and lower your cost basis.)
5. If the stock starts to run away from you before you can buy back in, call your last sale "successful profit taking" and move up the ladder to a higher base.
Even when the long term fundamentals are as outstanding as they are for PVG, it's imprudent to just sit on all your shares waiting for some big payoff that may never come, especially in a increasingly volatile gold market like we can expect over the next few years. A disciplined trading scheme allows you to both accumulate additional shares and take some money off the table.
In other words, to stop worrying and love the volatility.