My Investment Methodology

My Investment Methodology

The list below is what I have gleaned from the writings of Stewart Thomson whose articles you can find at http://www.321gold.com/

1. Think big, act small; the size of each trade should not be too big.

2. Buy into weakness, sell into strength.

After you have carefully selected the assets you want to hold for the long-term you should be willing to buy more as the price falls. If you find this difficult to do you probably didn't act in accordance with 1. in placing your initial investments. When the price turns upward you should lock-in profits while maintaining your core investment. You should be ready to gradually reduce your core investment when prices go to extreme levels.

3. React to price, don't predict it.

4.

Stewart Thomson:

"The gold community outnumbers the bankers. No amount of money satisfies the bankers. They always want more. Because they only buy weakness and only sell strength, and are prepared to buy to zero, they cannot be defeated, except by those who do the same thing, and do it for hundreds of years as a group. "