Happy new year to you all!
After keeping on averaging down on this stock, I paused for a moment and thought this is not right. Despite gold price marching higher and the company being in much better financial shape than it was the year before, share price was only moving in one direction: down. I was already down -67k on this stock. Fortunately, I was up six figure on VET, so that was enough to cover my loss from weed and gold. I could no longer sit on this coquettish "princess" and see her tantalizing me with a few cents up and down (down on most days) when people are busy booking 5-15% profit every single day on energy stocks. I sold most of my BTO and a few ETFs and bank stocks and ready to join the party. I made a mistake when I invested a large sum into SU, following the adage "go with the biggest". Bought at around the same time, while VET has a return of 45%, it's a mediocre 2.4% from SU. Despite feeling so strongly about VET and asking around if anybody was owning both VET and SU and if they were thinking about converting SU to VET and I wanted to hear their logic behind such decision, I made no changes to my holdings.
Having learnt a lesson from SU, this time I said "screw the size". I went with a few much smaller names that I felt very confident would bring outsized gains, two of which are OBE and SGY. Oh my God! I don't know what happened to this stock OBE but it has returned 50% within two weeks from the time I bought it (last trading day before Christmas holidays). Collectively, it's a 35% profit for me. I'm not going to pretend that I know anything about trading or investing, so I booked my six figure profit from OBE today and thinking about what to do with it.
I don't know if I should buy back BTO. What circumstances would result in a positive movement on this stock? This is the first miner I've invested in and it's only been 6 months, but here are my observations:
1. If gold price goes up by a small amount, this stock either goes down or stays flat. Sometimes it even tanks.
2. If gold price goes up a lot, it will go stay flat or go up by a small amount. Sometimes it even tanks.
3. If gold price tanks hard, this stock will go through a blood bath.
4. If Fed increases interest, it will tank hard.
5. If Fed decreases rates, it will tank even harder.
6. If the world will have to go through another pandemic, just like what we're going through right now, I can say without a sliver of doubt that this stock will perform similarly to how it's been performing.
What would make this stock go UP? I have to ask because I'm not too excited about losing money on it again.
Thank you for your insights and wishing you all a happy and prosperous new year. As we always say at the beginning of the year: gng x f ci.