Trade Alert: Increasing Exposure to Rare Earths
Portfolio Spring Cleaning, Navigating Micro-Cap Risk, and Doubling Down on a Generational Recycling Inflection Point
I have been performing a spring clean of the portfolio looking at older positions that have not developed the way I had hoped.
You can read about the Spring Clean and the reasons behind it in this piece.
It follows a performance review showing that cash on hand in the portfolio was becoming a concern. I only invest $250 a month, but I need around $2,500 a month to invest, so I have to keep generating cash to keep the wheel turning.
Following the review, I closed one position entirely at a loss, reduced one position by 50% for a small profit, and booked one large profit. The spring clean has generated $2,300 in cash, increasing the cash balance to an acceptable $4,297.
The work continues, and I have been reviewing the recycling sector; one stock stands out as being at the very beginning of its first commercial wave. This is a key inflection point for our trading plan, and as a result, I have decided to increase my position.
Disclaimer: I'm not a financial advisor and don't offer investment advice. This newsletter covers my high-risk trading in small-cap emerging stocks; past performance doesn't guarantee future returns. Make independent investment decisions based on your own research and risk tolerance; you are solely responsible for outcomes.