It's Never Different This Time: The Psychology Of Market Cycles

After more than 20 years of speculating in some of the riskiest sectors of the global stock markets, I have come to the conclusion that it's never different this time. In this video, I discuss the psychology of stock market cycles using multiple examples from recent Canadian small cap history (EMO, Novo, and Sona).  I also discuss two stocks that are relevant today: BIG.V and PMET.V.

This video is a candid, unfiltered take that includes many nuggets of wisdom that may seem controversial to some. For me, this is simply telling it like it is.

Timeless Market Truths:

~ The same cycles repeat over and over again in many different stocks - but each time a stock enters the belief/thrill/euphoria stages of the market cycle it feels like “it’s different this time”.

~ The most dangerous emotion an investor can experience is complacency, because it is at this stage that the risk is usually the greatest.

~ The more we “interpret” (read: make up) the facts, the more likely we are to make big mistakes as investors. This is especially true in highly speculative market sectors such as junior mining and biotech.

~ Optimism is a necessary ingredient for an investor to experience outsized returns. However, a bit too much optimism can become a dangerous thing, especially when position size becomes too large relative to the risk.

~ The first loss is the best loss.

~ There are more examples of investors who sold for a profit that would have turned into a loss, than examples of investors who sold for a profit and missed out on a much bigger gain. We just hear a lot more about the missed opportunities, than we do about the good sales that saved investors a roundtrip.

DISCLAIMER: The work included in this video is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This video is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.