One of my readers just messaged me about sitting on a 600% gain in a speculative mining stock.
Everyone’s telling him to ‘let it ride’ because the partnership could be worth 10X more.
Here’s what I told him… and what everyone conveniently forgets during euphoric runs: most mining partnerships never happen.
The House Money Trap
Right now, this thing is pure house money for anyone who got in early. That’s dangerous psychology because house money feels free. It’s not your “real” money anymore – it’s magic internet profits that appeared out of nowhere.
That’s exactly when you make the biggest mistakes.
I’ve been here before. Had winners that felt unstoppable, positions that seemed like they could only go up, plays where taking profits felt like leaving money on the table. You know what happened? I watched six-figure gains evaporate because I got emotionally attached to being right.
The market doesn’t care about your ego. It only cares about taking your money when you stop respecting the risk.
Here’s What I Told Him To Do
While his ego wants to ride this thing to the moon, here’s what makes sense:
First chunk comes off immediately. Take that initial stake off the table – at minimum. You’re now playing with pure profit, which removes the emotional attachment to your original capital.
Second round of profits at key technical levels – basically, selling more shares at price points where buyers typically disappear.
Keep the final position for the real fireworks. If the partnership rumors are true, if the joint venture actually materializes, that remaining position captures the maximum upside. If it all falls apart, you’ve already banked serious profits.
The Speculation Reality Check
Here’s what everyone conveniently forgets during euphoric runs: most mining partnerships never happen.
Companies talk. Management teams posture. Rumors fly. Press releases hint at “potential opportunities.” Then deals fall apart over valuation, regulatory issues, or simple corporate politics.
I still believe in this thesis. The fundamentals that attracted us initially haven’t changed. But you can be right about the long-term story and still lose money if you mismanage the short-term volatility.
YOUR ACTION PLAN
If you’re sitting on massive gains in any speculation play – not just this one – here’s your homework:
Calculate your original risk. What did you initially invest? Take at least that amount off the table.
Set profit-taking levels before emotions kick in. Decide right now: at what percentage gain do you take another chunk? Don’t wait until you’re watching real-time quotes and feeling invincible.
Remember why you bought speculation. You bought this for asymmetric upside with limited downside. You didn’t buy it to become emotionally attached to maximum theoretical outcomes.
Separate ego from strategy. Your ego wants to be right about the maximum possible outcome. Your strategy wants to capture substantial profits regardless of maximum theoretical outcomes.
The hardest part about winning big is learning when to stop winning.
Six hundred percent feels amazing until it becomes three hundred percent, then one hundred percent, then break-even because you got greedy.
Take the money. Keep some skin in the game. Let your profits compound from a position of strength, not from emotional attachment to being maximally right.
The market will give you plenty of other opportunities to feed your ego.
This time, feed your bank account first.
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