A colleague of mine has been quite happy with trading resource stocks - in particular the gold miners. He said that he's been buying a particular stock at a price of $33. As soon as the stock reaches $36, he sells. He waits for the stock to fall back to $33 and repeats the process. He's been quite successful at this and has been ringing the cash registers a couple of times this past year as the stock has been bouncing around like a yo yo.
This strategy will obviously work in a sideways market. Gold has been range bound for the last year. However, I believe this will change going forward. Gold is finally testing the big psychological price of $1000. This is the final hurdle before it takes off to new heights. Anyone not recognizing this and continues to execute strategies according to a range bound market will be left behind when this train leaves the station. They will look at the price of gold in frustration as it continues climbing higher without them.
Be forewarned... We are entering a new phase in this bull market for resource stocks.
All aboard!
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