Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. - Jesse LivermoreI don't have time produce some of my own work, so I wanted to highlight Eric King's interview with Rick Rule at King World News:
You know, Eric, for investors who are frustrated, past is probably prologue. They need to have a sense of what happened in the 1970s market. If you go back to that bull market, you will remember there were numerous occasions, probably 25 or 30 in that decade, where the precious metals prices fell 10% or 15%. The equities associated with gold and silver fell even further.
The grandaddy of all of those declines was in 1975. Now, what’s instructive to know is that nothing changed with regards to the fundamentals for gold and silver. What changed was the official sector’s interest rates and people’s perceptions of the value of gold and silver.
If you were in the market and had the cash and the courage to stay in the market from peak to trough, that is from the bottom of 1975 decline, five years later you were up eight-fold. It’s tragic that some people had the idea behind the bull market, but didn’t have the cash or the courage to stay the trade. Can you imagine getting shaken out of a trade where you were right, and then missing five years of an eight-fold advance?
So, for people who are frustrated with the volatility in this market, especially the downside volatility, simply remember that what is changing are people’s attitudes, not the fundamentals. The market doesn’t care if you are frustrated. The market doesn’t care about your time frame.
The market doesn’t care about anything. The market is merely a facility for buying and selling assets. If you have the courage of your convictions, if you believe, as an example, that gold is a better store of wealth than fiat currencies, then stay the trade.
That's most of the interview and here's the rest: LINK
Not much to add to that other than that I have found in that in twenty years of trading, which encompassed being an institutional junk bond trader/market maker, a trader of my own capital and the manager/trader of a small hedge fund, the worst time to bail out of a trade that I know is right is when I feel the most uncomfortable holding it. Right now the sentiment in the metals and mining sector is about as putrid as I've observed it for close to eleven years of doing this sector exclusively.
I can say with complete conviction and confidence that the best gains in this sector are still ahead of us.