MEP (ASX) New article on website

Originally posted by RoyE: ↑

Hi whizard
As willius said, if you are investing in these small exploration stocks, you can't let small (or even not so small) day to day market movements worry you. If you do you'll end up with stomach ulcers for nothing! These stocks can be very volatile because their market depth is often thin, so sometimes even small inconsequential selling by one lone seller can move the price down by 15% or more. As an investor in this end of the market, I would suggest that you (i) do your research (ii) pick out the stocks that you feel have the best risk/potential reward ratio (iii) buy these being careful to only risk funds that you can afford to lose (investing in small exploration co's is risky, however it can also provide excellent returns if you get it right) and (iv) hold these stocks until they either strike paydirt or alternatively they are unsuccessful, languish, and you reconsider and decide to sell because you think there are better options elsewhere i.e. their risk/reward has changed in your mind and you no longer see them as good risk/reward propositions. Also, try and avoid being impatient, jumping from stock to stock. Sometimes it can take years for a company to slog away on a project before they experience success - often they never do. That is why I only invest in exploration co's once they report drill results that indicate that they are onto something meaningful - sometimes the something proves disappointing, however at least by using this strategy I have a fighting chance. 30 yrs ago when I started investing I used to just buy exploration co's that I thought had good management, good ground etc before they had found anything substantial - however this strategy proved ineffective as there are 500+ exploration co's on the ASX so the chance of picking a winner is very, very low. It's much better to wait for very promising drill results (this will weed out 90% of the co's), then when a co reports good drill results conduct your research on that co and if everything else stacks up (good management, good ground, infrastructure in place, funds available for drilling, good sovereign risk i.e. Australia, Canada etc, preferably not some risky country in Africa, Asia etc where the Govt is likely to change the rules or nationalise the mine etc), then buy. Good luck!

Expand

I agree wholeheartedly with your sentiments. Have been with them right through the often turbulent past ten years. Started in the market back in 1984, Yep! that includes the 87 crash. All-up my portfolio shrunk by $200K give or take. Fortunately unlike many was all my money. Not borrowed. I heard many horror stories regarding those that borrowed during the good times only having to pay the piper in the bad. Many couldn't. Good luck and may MEP find the mother load.

ALY

Alcidion inks deal with Vic health provider Peninsula for use of Miya Precision tech

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

PCL

HotCopper users react as Pancontinental Energy's trading halt lift reveals little

ASX Market Open: Aussie market to leap on best 'Trump trade' bump since election day | November 22, 2024

C1X

iTech inks deal with Chilean lithium giant to progress Reynolds Range

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

CAF

IP anomaly thrills Cannidah with project extension hopes in QLD

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

CMB

I agree wholeheartedly with your sentiments. Have been with them...

Alcidion inks deal with Vic health provider Peninsula for use of Miya Precision tech

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper users react as Pancontinental Energy's trading halt lift reveals little

ASX Market Open: Aussie market to leap on best 'Trump trade' bump since election day | November 22, 2024

iTech inks deal with Chilean lithium giant to progress Reynolds Range

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

IP anomaly thrills Cannidah with project extension hopes in QLD

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Asian Battery Metals uncover second massive sulphide discovery at Mongolia's Oval play

Featured News

I agree wholeheartedly with your sentiments. Have been with them...

Top Stories

Alcidion inks deal with Vic health provider Peninsula for use of Miya Precision tech

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper users react as Pancontinental Energy's trading halt lift reveals little

ASX Market Open: Aussie market to leap on best 'Trump trade' bump since election day | November 22, 2024

iTech inks deal with Chilean lithium giant to progress Reynolds Range

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

IP anomaly thrills Cannidah with project extension hopes in QLD

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Asian Battery Metals uncover second massive sulphide discovery at Mongolia's Oval play

Featured News