I'm getting a little bored with my own postings here. I keep saying it and I will repeat it again. Never trade on margin, don't use borrowed money and never use leverage.
The stupidest thing you can do now is to sell your (almost) worthless junior mining stocks. Accept that your loss is temporary and be aware that both bull trends and bear trends move in X-Y-Z patterns, just like any product life cycle moves in stages (for the marketeers here).
The X-group should be categorised as the leaders/innovators. They are the (often) institutional investors setting the trends. The Y-group are predominantly professionals as well as institutional investors that take their losses in a bear trend a little bit later than the X-Group. The Z-group are predominantly private investors and 'forced' sellers (could be institutions that have hit stoplosses) that finally decide to cut their losses when stocks have almost hit rock bottom. Those are the people that should be categorised as laggards and are often emotional traders.
The Z-group is exactly the group that's now selling. This same pattern is recognised in the Elliott Wave theory, which speaks of a five wave trend, which exists of three waves in the direction of the greater trend and two smaller correctional waves. The third wave is often the biggest wave and also has the highest volume behind it. The volumes behind the downward move that we see now is not that substantial, which leads me to think that we may have reached the fifth wave.
Whatever it is, don't sell unless your wife threatens you with a divorce. Fundamentals are most important in the long run. Provided that a junior miner is not short of cash, the reserves will finally be the determining factor.
