What I do is keep a core amount of my miners to hold long and add on downswings and sell off when we approach highs. Booking profits is THE most important thing for any trader otherwise it gets you nowhere. As an example, Yamana Gold (One of the favorite mainstream miners) has increased it's range in the past year from ($11-$13) to ($14-$17). You MUST book profits when we have run 15% and are at all-time highs. DO NOT get caught in the enthusiasm and think we will go up in a straight line.
On top of that I have an account where I short miners in obvious situations. The ranges have been so consistent lately that it's like 15% up then 15% down.
Finally I have my indexed shorts to be able to book profits when the miners are falling as they are still attached to the main market. SKF is my favorite as it's an UltraShort of the Financials (the financials go down 2% & I make 4%). Then when it reverses switch to the counterpart (UYG) for financials.
Tomorrow morning i'll start posting my positions and my trades as I place them. Any questions feel free to comment.
Joe
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