Survival Tips for the Market Shakeout Blues

Stockholders who acquired during the pinnacle of the frothy commodities rally are now panicking or kicking themselves. Neither activity helps a backer or trader think straight. Below are some tips in working with the prevailing stock market shakeout.

First. If you think you invested in the right stock ( s ), then turn off your computer and do something delightful. Exercise is a great stress reliever. The market has started its shakeout.

If you didn't get stopped out, or did not place earlier stops, your best opportunity lays ahead in picking up further shares at a significantly lower cost. Almost all of the experts we've interviewed let us know the following rally should start sometime between late July and Work Day. In a plan to interview the uranium guru James Dines in late May, we were told, Call back in two months. That was a useful clue the markets were less than exciting. Mr. Dines is usually avid to be interviewed, but lately he wasn't.

Two. Do you think the basics which engendered the commodities boom have changed? If they haven't, then the bullishness is only taking a breather.

We don't see any elemental change in the markets. Russia still wants nuclear power, and its oil production could be peaking. China hasn't asserted the end of its nuclear enlargement program. India wants to spend $40 billion on new nuclear reactors. If you are invested in uranium stocks, spot uranium jumped another buck to $45 / pound this past week. Barely the end of the bull market.

Three. If you fret about your investment in one stock or another, then stop watching the ticker and target the company basics. Is the tale still true or has it changed? See seven A, B and C below.

Four. There is an old clich the time to buy is when you feel a bit like dumping everything you own in the class. At the precise moment you wish to sell your whole portfolio of uranium stocks, it could be wiser to add to your holdings. This applies mainly to the retail financier. Almost all of the pros did dump at the top and are now slowly amassing the stock of the nave who waited till the washout to begin to sell off.

Five. Has a major, earth-shattering event occurred? The last bull cycle in uranium stopped with Three Mile Island ( TMI ). The last decent rally in the dear metals markets fell off a cliff after it was found Bre-X Minerals had committed a crime about its gold discovery in Indonesia.

Something heavy and hot always transpires, and it's also far reaching. That's the trigger. As with TMI and Bre-X, those were the 1st shots which launched a later chain reaction to finish those bull markets.

Six. Before pulling the sell trigger, ask : Do I need to give up these shares to a bargain basement hunter, who will make money on my losses?

Seven. Since almost all of you will still panic, please review the following basics for any of the uranium firms you have read about : A ) how much money does the Firm have in the bank? During shakeouts, money is king. Prescient corporations, which finished their financing's in the contemporary and powerful rally, are sitting pretty. They can weather the short term hurricane and are well-oiled to go forward when this correction bottoms and reverses. Those firms are the strongest ones to test out when this correction looks most depressed. B ) Has the management stayed the same? Unless the top fiscal and / or technical folks blew out the door, in the last few weeks, the tale potentially hasn't modified much.

Corporations which built a robust technical team are adaptable and potent. They're going to move forward. C ) Have the properties come up dry? One of why you invested in a uranium company was as it expounded it had pounds in the ground. Some firms have more than others. Some went to the cost and difficulty of completing a Countrywide Instrument 43-101, which independently confirmed the quantity and quality of the uranium resource. If that modified and the company asserted, Sorry, nothing there after all, or articulated, Hey, we were kidding, that's one thing. If you haven't heard that, or read a press release exclaiming that, then the uranium didn't walk away or move onto a rivals property. Its still there. Next time, when the markets are racing higher, and you are feeling like you won the lottery, think about this bit of biblical recommendation. The old joke goes, at what point did Noah build his ark? The answer naturally is : Before it started to rain.