Raw Greed’s profitable strategy review

Posted on September 12, 2006 , filed under Stocks | Print This Post

I wrote this article on July 17th, 2006 about a profitable strategy in the market.

Here is a quote from the article:

I would play this short-term strategy:

1. Buy gold mining stocks in the next 1-2 weeks if gold trades above $700. This would signal a positive psychological entrenchment in mind of investors that the Middle East conflicts aren’t going to blow over anytime soon. I am actually giving readers a conservative approach. I have already started accumulating a gold position. My top two picks Yamana Gold, Inc. (AUY) and Tanzanian Royalty Exploration Corp. (TRE) now represent 1/2 of my portfolio.

2. Sell gold and take your profits as the Middle East conflicts ease and crude oil prices drop.

3. Buy (UMC) and other beaten-down tech stocks like my number 2 choice, eBay, Inc. (EBAY).

I did not execute step 2 properly since I have been concentrating on other projects. I should have been paying more attention to the news and prices of commodites and metals. For those of you who have been following my strategies I hope that you were able to handsomely profit by selling gold in the last month. If you are now holding UMC, EBAY or other tech-stocks, I would hold onto them as I expect to see a fall rally in technology issues. If you are holding cash, I would recommend watching how the commodities and metals market pans out in the next 2 weeks. I am looking for gold to stabilize at under $570.

Disclaimer: I currently own 4000 shares of TRE, purchased at an average price of $7.36 and 10102 shares of UMC purchased at an average price of $3.17.

Add this post to your favorite social networking site