Booking Profits – Never Ever a Bad Thing!

Recently, I’ve been getting a lot of messages regarding Critical Elements (CRE.V/CRECF). No doubt, these inquiries are coinciding with the stock recently setting new 52 week highs and running up over 100% year-to-date.

As I’m typing this, here is the share price of CRE.V.

Some quick thoughts before I head out to explore Punta Cana (I’m in the Dominican Republic now).

Naturally, whenever an asset is doing well and trending in the upward direction, we don’t want to sell… It’s a very, very difficult thing to do!

But on the flipside, what I’ve seen happen way too often for investors/speculators (especially those dabbling in natural resources mining stocks, which is perhaps the most difficult sector of them all to get the timing right!) is that they neglect ever booking any profits, and thus end up riding the rollercoaster all the way up and then back down again…

The Game of Rocks is an extremely volatile sector… Today’s darlings can just as easily (and quickly) be relegated by the market to becoming tomorrow’s pariahs.

So my own belief is this — Whenever you’re in good profits, it’s never a bad idea to take some chips off the table.

How much to sell?

I personally really like the strategy of selling 1/2 on the first double.

In reality, I don’t usually ever do that though… b/c I’ve accepted/learned that I’m conservative at heart and should start trimming (nibbling) shares well before then… I need to dollar-cost average (DCA) my selling on the way up, working hard to reduce that cost basis as much as possible.

With CRE.V/CRECF, the majority of my selling occurred around C$0.89/share. Obviously, with the benefit of hindsight I sold out too early…

But it doesn’t matter…

My original cost basis was sub C$0.50/share, or something like that.

Looking back, I wouldn’t have changed a thing…

I’d much, much rather regret missing out on some gains than being a bagholder who is bleeding profusely from all my losses!

Now, I’m free-carried (my cost basis is in NEGATIVE territory) with CRE.V/CRECF, so even if the stock blows up and my remaining 100,000 shares all fall to $0/share, I will still emerge out of this trade ahead and with a profit.

And that does a lot for peace of mind, anxiety, and all of that jazz…

I mean, just look at how poorly precious metals mining stocks have been performing lately! When I think back to many of the mistakes I’ve made playing in that space, one important one that sticks out like a sore thumb is the fact that I didn’t sell enough shares during the rips… Many of my own buddies are sweating right now b/c last year they were up 50-100% on their stocks and now they are either back at break-even or frustratingly a bit in the red

That is mentally/emotionally damaging and it can eat away at you…

Again, I can’t overstate this enough — This is a freekin’ tough ass game to succeed in!

So, never forget to, “Buy low and sell high.

If you’re bullish on the company/underlying commodity, you don’t have to sell everything… but sell enough so that you can secure peace of mind (i.e. reduce the cost basis greatly) and don’t find yourself having to check the price action every single day (a very bad habit).

Psychological warfare, much of this game is…

And it’s human nature to prefer to see green as opposed to red in the portfolio!

The easiest way to ensure your odds of always staying in the green, again, is to sell 1/2 on that first double.

But just find the right balance that works for you and your own personality.


Some folks are able to be down $100,000 and not bat an eye…

Others only need to be down $100 before they start panicking and are eager to throw in the towel!


Regardless, no one ever went piss broke booking profits.


I’m very bullish on the future prospects/growth in the lithium sector and my preferred vehicles of choice to maximize gains have been focused on two outlets: CRE.V/CRECF and Birimian Limited (BGS.AX/EEYMF). With CRE.V/CRECF I’m free-carried and feeling pretty good. On the other hand, when shares of BGS.AX hit over A$0.50/share last September, I did not a thing, and really regret that decision now.

I sure wish I was free-carried on my BGS.AX/EEYMF shares b/c this game is damn tricky and things can (and do) go wrong…


Lesson learned… I hope.


Fight On!

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3 years ago

Thanks for bringing Critical Elements to my attention! Bought shares last October and sold half of my position a couple days ago. I knew nothing about the miner sector before reading your blog.

Now I’m waiting for someone to buyout Birimian Limited, hopefully something happens over the next 12 months.

Thanks again!

3 years ago

Maybe you want to check whats happening at Birimian and you might not regret after all!! ?????

3 years ago

Never a bad thing indeed 🙂 Congrats on booking those profits, FI Fighter. And thanks for bringing this company to my attention. I owe you a beer or two 🙂

Enjoy your time in Dominican!