NOR charts thread, page-2202

Hi Poida.

TA works better and more consistently on the bigger and more liquid stocks. I can also combine it with a macro (economic) view of the market and the businesses are a bit more transparent, with less manipulation. So my skills are best suited to the big end.

The spec end is different. My skills are less effective here. So for example once NOR has run I can read it well how things are playing out, but I can't make any money at this point. (I can't short it and its too late to go long). To make money in this you had to be set before the big run and then sell once it peaked. TA helps but you need more than that to pick these as they can go nowhere for years.

To trade specs it seems as much about the people behind it or catalysts to drive the story as the fundamentals themselves. But you often don't need a high level of technical skills and so they are more attractive for a lot of retailers to trade. There's a whole tribe of people on HC who makes a study of these things. Hot Copper seems to have it's own eco-system where respected posters throw up potential specs, a bit of promotion goes on, a spec stock gets a following and then boom it runs. Next thing you know a capital raising is announced or whatever and then they go quiet and drift for years.

I'm hanging out a little bit in the specs lately to see if I can identify some potential runners, but I also think the emerging bear market might make specs a lot harder in 2016. I own one, a gold explorer, which is in the going nowhere phase and I'm not sure I made a wise decision with it so I won't mention it. I'm not really the expert for identifying these early stage companies before they've run.

Most of the spec discussion seems to occur on the Daytrading and Short Term Trading threads. Lots of hearts with big followers there although I only occassionally read it. The XSO forum "the brains trust" has HotCoppers best small cap posters in my view (maybe a controversial statement!) and is where I mostly hang out. You're best wandering around those forums for ideas, but just remember many people are talking their own book and promoting things.