Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to review some trading strategies in gold, silver, and base metals junior exploration stocks, after the initial discovery hole has been made. He discusses that many of the mining investing mantras about “taking half the position off after a double in the stock” or “don’t chase stocks higher” or “take profits early” are actually detrimental to the desire many investors have in seeing multi-bagger returns on junior mining stocks.
We discuss Erik’s observations on how stocks have reacted since discovery in stocks like New Found Gold (NFG), Alpha Exploration (ALEX), as well as using Great Bear Resources (GBR), and Snowline Gold (SGD) as examples of how much a stock can run after the discovery hole. Erik points out that news release about a great discovery hole, isn’t necessarily the news to sell to harvest gains; but rather, sets up the next series of news releases to see if a quality team on a quality project can keep hitting with the drill bit and expanding the resources of an early stage project.
*In full disclosure, many of the companies mentioned by Erik, in this interview include personal positions in his portfolio, and they also may be site sponsors on The Hedgeless Horseman website.