Just two days after my recommendation here in Energy and Capital, shares of Endeavour Silver (NYSE: EXK) jumped over 20%.
At the time you received my email last Wednesday, shares were trading at about $1.70. At last look, EXK was around $2.25 per share.
If you bought at the time of that recommendation, you’re currently sitting on about a near 32% gain… in just two days of trading!
And I’m thrilled for you.
However, watching shares of EXK steadily rise Wednesday, Thursday, and making a big move upward on Friday, reminded me of an extremely important investment commandment that should never be broken…
And it’s a pitfall that we absolutely can not afford to fall into with our natural resource investments right now…
Don’t Chase Stocks
It’s something that I can’t stress enough…
After you’ve done your due diligence, and determined a price you want to pay for a stock, stick to that price. Don’t chase after buying that stock any higher.
I make money trading because I don’t buy rising stocks. I sell them.
Chasing stocks is like getting overzealous with a new love interest. It very rarely works out well for you. And if it does, you got lucky.
Don’t do it. It’s one of the best ways to lose money in the stock market.
If you miss the chance to buy one of the stocks we talk about here in Energy and Capital, don’t worry about it. There will be plenty more.
As I mentioned on Wednesday, I was planning on putting in a limit order for EXK later last week at around $1.50.
And I meant it. That’s where I wanted to buy the stock. And I wasn’t going to chase it any higher.
But by the time I had got to the office — and about the time you received the Energy and Capital newsletter — the stock was already trading up to about $1.70 on advancing silver prices. So I didn’t even bother calling in the limit order.
The bottom line is this…
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There really is no need to even take the risk of chasing these mining stocks right now.
Listen, this natural resource cycle is just starting back up. And sure, it’s not going to last forever. Nothing does. But there are absolutely going to be hundreds of more opportunities to cash in over the next several months.
I said that this was going to be easy money. And it will be. We just need to keep a minimal amount of discipline and patience.
So what do you do with EXK now?
Well, if you made 20% in a two-day trade, you sell it.
And you sell it with no apologies.
That said, I still think Endeavour has good upside potential. So if maybe you saw a little gain, but not enough to really make your trade worth it, hang on to the stock for a quarter or two.
But there’s no way I’m paying $2.10 for EXK right now. I think there is much bigger upside potential elsewhere at this point.
Keep reading Energy and Capital for more silver stocks. I’m currently looking at another one I hope to bring to you real soon. As I mentioned, the party is just getting started. Together, we’re going to make some serious money during this cycle.
Stay disciplined. Stay patient.
Luke Burgess
Energy and Capital
