I had the pleasure of being asked to speak at PDAC immediately before the final speaker, President and CEO of Sprott U.S. Holdings, Rick Rule. I spoke about controlling emotions when investing which was part of my PhD thesis.
After speaking, I attended various media events where I had the opportunity to mingle with other speakers, writers and media persons.
Following this, I attended the Equities.com/MGX Minerals event. As you know, MGX is one of my favorite companies and I had the chance to reconnect with president Jared Lazerson (he is excited about MGX’s recent news released click here).
On Monday I went to the Stockhouse party. The gathering was very well attended and I had the chance to connect with individuals I have not seen in quite sometime. The overall mood of everyone I spoke with seemed very bullish on where the price of precious metals and commodities are heading. Stockhouse led by Justin Meiklem is a very positive force in the industry.
PDAC 2017 was a well attended event. I believe we will see the attendance and enthusiasm continue to grow.
Highlights of my talk:
I began my talk with the Jack and Beanstalk fairytale and how it relates to investing:
I was trying to demonstrate that emotional investing has occurred through the ages.
Finally, I spoke about ways on how an investor could avoid emotional investing:
1. We need to remove emotions from decisions – In investment there is no room for emotion. One must be analytical, look at the facts and make a well thought out decision.
4. Do NOT wait until break-even – Sometimes the fundamentals of the company go so wrong the stock starts to plummet and may never recover. The investor needs to remove emotion, cut the loss and move on. No one ever bats a thousand!
6. Implement stop losses – This will assure you will not lose your whole investment. Know how much you can afford to lose. Many professionals say a max of 15 percent is all they are willing to lose.
7. Do considerable amount of research on a company – from management, to balance sheet to investigating the mine/technology etc. Personally CALL the president and speak with him/her to get a feel for what they are doing. If they refer you only to the IR person, move on to a company where the president makes time for shareholders.
8. Take profits! Take profits! Take profits! You cannot lose by taking profits.
9. Consider buying into a company where you see superb management team! People make the difference and having the right team members in place generally leads to success.
10. Lastly, consider doing the opposite of what you feel emotionally. If you feel greed, it may be time to sell.
Be easy on yourself.
Dr. Kal Kotecha
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