Plan Your Financial Wealth

Investors who bought during the top of the frothy commodities rally now panicking or kicking themselves. Neither activity helps an investor or trader think straight. Here are some tips to cope with the current market collapse.

1. If you think you’ve invested in the stock right (s), then turn off your computer and do something enjoyable. Exercise is a great stress reliever. The market has already begun its collapse. If you do not have to be stopped, or failed to place earlier stops, your best opportunity lays ahead in picking up additional shares at a price much lower. Most experts we interviewed told us the next rally should start sometime between late July and Labor Day. In an attempt to interview the uranium guru James Dines in late May, we said: “Call back in a few months.” It is an interesting indication that markets have been less exciting. Dines is often eager to be interviewed, but recently it was not.

2. Do you think the fundamentals which engendered the commodities boom have changed? If they do not, then the excitement does not follow that blow. We see no fundamental change in markets. Russia still wants nuclear power, and its oil production ceiling in May. China has not announced the end of its nuclear development program. India will spend 40 billion dollars on new nuclear reactors. If you are invested in uranium stocks, spot uranium jumped another dollar to $ 45/pound last week. Hardly the end of the bull market.

3. If you’re worried about your investment in a stock or another, then stop watching the symbol and focus on the fundamentals of the company. It is the story still true or has it changed? See # 7 A, B and C below.

4. There is an old cliché that the time to buy is when you feel like dumping everything you own in the category. Just when you want to sell your entire portfolio of uranium stocks, it would be wiser in May to add to your collection. This applies primarily to the retail investor. Most professionals did dump at the top and are now slowly accumulating the shares of the naive who waited until the washout to start selling off.

5. Has a major event, shattering the page? The last bull cycle in uranium ended with Three Mile Island (TMI). The last decent rally in the precious metals markets fell off a cliff after it was discovered Bre-X Minerals had perpetrated a fraud on the discovery of her gold in Indonesia. Something important and newsworthy still appears, and is also great scope. This relaxation. As with TMI and Bre-X, are the first shots that started a chain reaction then stop these markets Bull.

6. Before pulling the sell trigger, ask yourself: Do I really want to sell these shares at a bargain hunter basement, which will make a killing on my losses?

7. As most of you will still panic, please review the following basics for any of the uranium companies you’ve read about:

A) How much money did the business at the bank? During shakeout, cash is king. Prescient companies, which completed their financings during the recent event and robust, are sitting pretty. They can cross the crisis in the short term and are well oiled to proceed when the fund correction and setbacks. These companies are the strongest to check when this correction seems darker.

B) A management remained the same? Unless the leading financial and / or technical staff blew the door in recent weeks, the story probably has not changed much. Companies that have built a strong technical team are resilient and powerful. They will go forward.

C) have the properties are dry? One of the reasons you invested in a uranium company was because he said he had “pounds in the ground.” Some companies have more than others. Some have gone to the expense and sentence to complete a National Instrument 43-101, which independently confirmed the quantity and quality of uranium resources. If this has changed – and the company announced: “Sorry, there is nothing after all , “and announced,” Hey, we were joking is one thing. If you do not hear it or read a statement announcing the news, and uranium does not go away or go to the property a competitor. He is always there.

Next time, when markets are racing higher, and you feel like you won the lottery, consider this bit of biblical advice. The old joke saying: “When did Noah build his ark?” The answer is, of course before it begins to rain.