Posted by goldnice on 25th of Nov 2019 at 02:23 pm
KL.TO Gold stock with a huge {GAP DOWN} at the open after
releasing negative news pre market. KL buying out DGC.TO for
$4.9 billion. This is the 4th time since the bull market in gold
stocks started in Oct 2018 that this scenario has happened to me.
Another example of why position sizing and risk management is key,
especially in the gold and silver space. If i was a big shareholder
i would be absolutely beside myself with rage. This kind of
scenario which is not uncommon in this space is why gold and silver
stocks get a bad name. If you want to use big money in this
space it's better to buy the GDX or long term options on GDX to at
least cut out the company specific risk of this scenario unfolding
on your money.
Here is one view on this issue that some find convincing: if you
does not know how to pick quality stocks that lead an index, one
should go for diversification. If one can identify future leaders,
one would opt for concentration.
Price of KL follows the path of $GOLD and $SILVER metals so far.
I would have been very alerted if it had happened otherwise.
A cup and handle formation does not occur when RSI(14) is above
70. It is a bull trap.
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KL.TO Gold stock with a
Posted by goldnice on 25th of Nov 2019 at 02:23 pm
KL.TO Gold stock with a huge {GAP DOWN} at the open after releasing negative news pre market. KL buying out DGC.TO for $4.9 billion. This is the 4th time since the bull market in gold stocks started in Oct 2018 that this scenario has happened to me. Another example of why position sizing and risk management is key, especially in the gold and silver space. If i was a big shareholder i would be absolutely beside myself with rage. This kind of scenario which is not uncommon in this space is why gold and silver stocks get a bad name. If you want to use big money in this space it's better to buy the GDX or long term options on GDX to at least cut out the company specific risk of this scenario unfolding on your money.
I went across some good
Posted by junkie on 26th of Nov 2019 at 04:24 am
I went across some good TA about KL: it should have been sold at $47.75-48.00. There is an article on it from seekingalpha
link. Or google for 'KL kirkland lake company valuation' and it comes first in the list. I am sorry about your loss.
Here is one view on
Posted by junkie on 25th of Nov 2019 at 02:58 pm
Here is one view on this issue that some find convincing: if you does not know how to pick quality stocks that lead an index, one should go for diversification. If one can identify future leaders, one would opt for concentration.
Price of KL follows the path of $GOLD and $SILVER metals so far. I would have been very alerted if it had happened otherwise.
A cup and handle formation does not occur when RSI(14) is above 70. It is a bull trap.