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  • AvatarAphroditus
    Participant
    Post count: 65

    Up 14.75% on BEN this morning after 13 months with two tranches. First tranche down 1.99%, second trache up 38.36%

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Yeah, individual tranches don’t matter. Your latter ones will always be the huge ones that make up for a 1st one.

    You could always consider selling and locking in those gains. Any respectable gains you want to lock-in (besides SLV, XOM) before the next market sell-off, you might go ahead and consider doing it.

    So, if you’re up 15%, 20%, 30%, etc. on your positions overall, you could lock-in whatever you wish.

    AvatarAphroditus
    Participant
    Post count: 65

    Agreed about the individual tranches, but it is fascinating to see the true power of averaging down. I hear so many people talk about buying bitcoin, Tesla and how it’s going up . . . yet the numbers here show how the downtrend is truly our friend. Thank you for your constant hammering in of these concepts, Sean!

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Yeah, and people take on far too big of risks in the other bubble assets. For instance, bitcoin is down 14% today so far.

    Yep, the lower tranches make up the bulk (and sometimes all) of the gain. We own more shares at those lower prices, even though we own the same dollar amount. Those larger shares at lower levels really do wonders for us, in overall % return. Much of the time, we don’t even need the price to trend higher than our original entry price in order to have a massive gain as if we’d been in a massive uptrend.

    You’re welcome. Yep, without the downtrend from the entry price, there would be no averaging down. And with averaging down comes turbo-charged gains, with no uptrend in the stock required. And we took on lower risks to get that return than a momentum/trend-trader would to get the same return.

    AvatarScott Pearcy
    Participant
    Post count: 433

    Sold the remaining portions (2/3) of this position for a gain of 37.14%…..This is in addition to the earlier sale (1/3) for 17% gains…..overall….BEN provided a great profit!!

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Awesome! Love it! Congrats. Made great money in an asset where there wasn’t any rah-rah from the media….where there was a message that essentially everyone is indexing and doesn’t need a money manager and even articles that stated that BEN was a “value trap”. All of them were mistaken and there was money, great money, to be made in it.

    The best investments are never the most obvious investments. Our system sniffs them out and tells us what’s worthy of investment and what’s not.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    By the way, bitcoin is down almost 20% intraday now. Massive bubbles carry massive risks. And they have no idea why they’re in it or what “fair value” would be in it. So, it causes panics in it very easily.

    Could you imagine something so volatile actually being used as a currency? It’s why…it’s not a currency. If one were buying with bitcoin, today, your products would cost you 20% more than it did yesterday. it’s not a currency. It’s not a “store of value”.

    AvatarAphroditus
    Participant
    Post count: 65

    Any money that comes your way and remains is God’s gift to you. And God gives you this gift to test your character, do you waste it away, or use it to make an impact in the world? Knowing this, why would you gamble with this responsibility? I have not yet heard anything that convinces me that this is anything different than Las Vegas slot machines, furbies, POGs, pokemon cards or Dutch tulips.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Bitcoin is a mania/bubble just like the other things yo mentioned. People get emotional and get “caught up” in them and don’t use good sense. Their greed takes hold of them and they lose all sense of good judgment.

    AvatarYamahopper
    Participant
    Post count: 5

    Great system Sean. Just sold BEN for 33% gains including dividends after holding for just over a year, and that was with being slightly down on the first entry tranche! This averaging down stuff truly works and I appreciate your non-greed approach of taking the bird in the hand. Thank you sir!

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Thanks, Yamahopper.

    Yep, great portfolios are built by cranking out respectable gains and taking them over and over again through the years. Amen!

    You’re welcome.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    A few take-aways I’d like to point out from the chart of BEN.

    When did people panic on BEN? On this day that I’ve circled.

    Do big “down days” matter on solid assets? No.

    By the way, when did it happen? Wave 2. And what comes after wave 2’s (negative feeling period)? Wave 3’s, huge up-moves.

    Notice that before its best move, was the “slam” downward. I think that’s sometimes to shake-out/scare-out the “weak hands” before the rally.

    Notice, the technicals continued to improve, within its range.

    Notice, that long ranges breakout into long, strong trends. So, they’re worth the wait, through the range. In the range, people consider the assets to be “dead” but they’re not, for solid assets.

    The sentiment was horrible…the news for it was horrible. Yet it had NOTHING to do with its future potential. Fundamentals trumped it all. It’s why fundamental soundness and fundamental cheapness are the foundation of it all for us, and the most important.

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    AvatarSDVD
    Participant
    Post count: 11

    Sold BEN for gain of just over 30%. Thank you again Sean for another great pick and for sharing the reasons that make it a solid investment.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Love it! Congrats. If I knew all of our subscribers grabbed that final/last averaging down, I’d be issuing an official sell alert. But since that averaging was so brief, I have to assume that some didn’t have pre-set limit orders ready to grab that brief, 3rd tranche.

    Once BEN likely gets to around the $28 resistance on the weekly chart, which is its 200-week moving average…somewhere around there is where we’ll likely officially exit because even those with only 2 tranches should be up a lot by then.

    Glad you’re out with such a great profit!

    Sean HymanSean Hyman
    Keymaster
    Post count: 5594

    Love it! Congrats. If I knew all of our subscribers grabbed that final/last averaging down, I’d be issuing an official sell alert. But since that averaging was so brief, I have to assume that some didn’t have pre-set limit orders ready to grab that brief, 3rd tranche.

    Once BEN likely gets to around the $28 resistance on the weekly chart, which is its 200-week moving average…somewhere around there is where we’ll likely officially exit because even those with only 2 tranches should be up a lot by then.

    Glad you’re out with such a great profit!

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