⛏ Paid Shills Pumping Stock

Greetings Contrarian, 

This is The Next Big Rush, your daily drop of mining / energy news, gossip and opinion.

As we continue with our Agony Aunt series, let's see what questions you brave souls are putting forward.

Dear Miss Jaded,

This is a great question; I'm glad you asked.

Mining is, because of its technically complicated nature, a very risky endeavour. As such, the only way to make it work is by 1- selling the story to potential investors and 2- a market to do so.Unlike the tech start-up world, which is mostly privately done by a small group of rich old guys in California, the mining world raises money publicly. 

This is good, because it allows us all to participate.

It is also bad, because hopes and dreams are bought and sold and some games are played in which you are the target as a retail investor. 

When it comes to building sound businesses, The failure rates of both industries are astounding. 

Because it's so difficult to know who's who in the zoo and who's going to find what, it becomes more of a lottery for those who don't want to do the hard work of researching, and apply good risk management.

In other words, you have to become a person that does your own homework.

This is a mixture of:

 ✅ looking into the company's site for information that is there, and asking yourself what information isn't there and why,

 ✅ checking official channels such as SEDAR, SEDI, ASX, etc.,

 ✅ looking at management's history of success and failures,

 ✅ finding out if project quality / potential matches your expectation,

 ✅ asking others and sharing ideas / asking the stupid questions.

At the end of the day, everyone is talking their book.

Every stock tip comes from someone who bought before you, whether they got paid or not to promote a certain company is somewhat irrelevant because a person who holds a big chunk of their portfolio in stock ABC is just as biased when talking about it. 

In the age of social media, we are all promoters. So you must, with time, build your own framework and filters. Independent thinking is the only way to navigate this industry successfully. 

A wise man once said "You are either a contrarian or a victim". 

Happy speculating, 

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.