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I’ve had my eye on something lately and I wanted to share it with you before this opportunity gets away.
I’ve always gravitated toward bigger, higher liquidity names. It’s where I’ve historically played because I like being able to get in and out cleanly without getting burned on spreads or execution.
It’s also a way to keep risk under control. A lot of traders chase what look like penny stock opportunities for the potential of a 300% or 400% move, but many of them just never go.
I’d rather stack the odds in my favor.
I believe gold and gold mining stocks are at or near a bottom, and I’m actively building positions right now. This isn’t a trade I’m backing up the truck on — certainly not yet — but I’m starting with Barrick Mining (B) and only went after one contract initially because I want room to maneuver if price dips lower.
These stocks may push down again, and I want the flexibility to add at lower levels and keep pulling my dollar cost average down. It’s a simple approach, but one that pays off when a sector is turning.
When I look at the charts, the setup is compelling. Barrick, Newmont (NEM) and Ashanti (AU) all have the same pattern — they’ve pulled back significantly and are consolidating. Even the higher priced names like Ashanti are showing the same structure. That’s exactly what I want to see when building into a long-term opportunity.
Why I Stick With the Big Names
Some of you might be wondering about the junior miners. Sure, you could look at VanEck Junior Gold Miners ETF (GDXJ), which includes companies like Equinox, Alamos, Evolution, Endeavor and Kinross. There’s a whole universe of smaller names to chase.
But that’s not really my style. I tend to stay with bigger, high-liquidity companies because they give me cleaner entries and exits and the fees don’t eat you alive. It’s a more efficient way to trade, especially when you’re scaling in gradually.
A lot of traders try to chase what looks like a massive upside opportunity because the potential move is so big. The problem is that many of those stocks never actually make the move. Meanwhile your capital sits there waiting for something that may never happen.
The Problem With Chasing Small Caps
I’ve been down that road myself. I got into Fastly (FSLY) in the $9-$10 area and now it’s at $15. Decent move, but the stock has almost no beta. Even with the swings it’s had, it could take years to reach the levels some traders are hoping for.
It’s just not a fast runner.
With the gold miners, I’m taking a different approach. I’m building into quality names with strong liquidity, starting small and leaving myself room to average down if needed. The pattern is clean, the sector looks bottomed and I’ve got conviction this setup has major upside potential over the coming months and years.
If you’ve been watching gold, now’s the time to pay attention.
Jeffry Turnmire
Jeffry Turnmire Trading
I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!
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Important Note: No one from the ProsperityPub team or Jeffry Turnmire Trading will ever message you directly on Telegram.
I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 1% a day? This Kind of Consistency Should NOT Be PossibleÂ
Take it from me, the daily tactic I’m about to show you is arguably the most consistent setup I’ve come across…
Over 172 trades and counting without a single loss, all because I’ve struck upon one of the market’s most consistent daily patterns.
