Great reply Endless, I appreciate it. You probably sense my...

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patsy2

217 Posts.

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10/12/21

01:31

Post #: 58201565
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Originally posted by Endless: ↑

One thing I would caution against is thinking that having any kind of 'expertise' in regard to spec stocks is gonna give you an advantage. It is seldom the case except in terms of understanding the basics. Trading spec stocks really has little to do with what the coys do. It's more about what the market thinks the coys do and whether they are gonna make $$$s out of it. Peeps who have a personal interest tend to see too much in the coys potential and ignore what the market is thinking or not thinking about a coy. LT holders of NEU are well underwater and for the last 8 years the SP has been in a channel. Just DTing the chart would be the most profitable way to deal with NEU.

And even if the stock does do something special and make big gains, then there's luck involved cos overall most of this type of stock won't make you any $$$s.

It would take too long to delve into all the angles here but for an example. There was a stock around about ten years back called Giaconda GIA. The head of the coy actually won the Nobel Prize for his work on this treatment. Many people assumed that with this pedigree the stock was certain to make big gains. However it really didn't go anywhere and only lasted on the ASX for a couple of years.

I wish you luck with NEU but I would take a more general view of the market and look for profits in the everyday ebb and flow of $$$s as stocks get discovered and discarded by the great unwashed hordes.

Albeit that NEU was a good trade today for those who read it right. Chart gives it a shot at $5 if it continues.

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Great reply Endless, I appreciate it. You probably sense my internal wrestle and your advice is helpful.

Tried my hand at trading many years ago with limited success. Instead I realised I'm quite reasonable at picking winning stocks over longer time frames based on FA. I'm much better suited to short term trading and now wanting to improve my TA skills to refine my exit points.

I bought NEU earlier this year and then grabbed a few more as a 'trading bundle' when the markets dipped lower recently so I'm sitting on a very healthy profit. I intend to sell my trading bundle shortly but I'm holding on to my initial investment for now.

You are right about stocks being "discovered and discarded" which is why I check the DT thread. It's useful for gauging market sentiment and helps me work out which ones to avoid so I'm not caught out by the hype around a particular share or sector. Although I am looking forward to LCK being rediscovered, if not tomorrow then very soon I'm sure.
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