Golden Predator Mining Corp. T.GPD

Why You should Love The Market "Efficiency" Hypothesis

[djrichie]

Anyone who, very incorrectly I might add, assumes the marketplace is actually Effecient (esp the junior mining market with low liquidities) needs to have their collective heads examined. Contrarian investors make a killing off these gullible market participants. 

Be thankful for these 'market gifts' from the gullible, that think the market is effecient and chase trends in a herd mentality. For without them, you would not make any money at all. 

To those looking for a better understanding as to why markets are actually in fact, inefficient, you would do well to study mass psychology, booms & busts, human psychology, and any grade nine level macroeconomics as well as it's related microeconomics for that matter as a basic foundation.

Then as it pertains, study and learn the 'natural life cycle' of ALL junior mining companies go through and merry the aforementioned reality of market inefficiencies to make a killing from the emotional trend chasers and herd mentality participants.

In short, you want to be buying when everyone is selling and selling when everyone is buying. Because the junior mining market is perhaps the most ineffecient market to be in and as a result provides the greatest opportunities to make a killing by contrarian value investing. 

You want to sit patiently by the watering hole waiting for the gullible, trend chasing herd to arrive, and when it does make sure you are among the first to leave; already sitting at the next watering hole patiently waiting for the next cycle of mass psychology to arrive.  

GLA