IT sector chart is relatively steady and trending up.
CNW chart is highly volatile. Late FOMO buying into sharp parabolic moves is easy pickings for other traders to take your money. Longer-term trend not strong. This can be more easily seen on weekly and monthly charts.
I mainly trade larger caps stocks from within the ASX 300. Trading these spec stocks is beyond my style and ability. If I was forced to trade CNW, it would be allocated under 5% of my total trading capital.
Traders starting out should concentrate on larger cap stocks that are strongly trending in a strong sector.
Trading should be a relatively boring repetitive process of searching for stocks trading near new highs, and then monitoring their progress with a trailing stop loss. The process of trading will enable the market to tell you everything you need to know.
No emotional attachment to any stock or index. No favourite stocks. No predictions. Just pure reaction to what the trading plan dictates. The best traders stay away from trading forums. Some of them started here towards the early years, but soon learn by experience that most don't have a clue what they are doing.
CNW Price at posting:
3.3¢ Sentiment: None Disclosure: Not Held
