Hot sectors - a trader's treasure chest

Loving the action in the 2 noticably hot sectors at the moment, Rare Earths and Gold. Takeover offers to AND and AVO on top of the strong gold price, has set the goldies away, and the REE plays have all been flying.

In my opinion the key to playing these hot sectors is just putting in that extra little bit of homework and searching for stocks in the sectors that haven't taken off yet.

I usually make up a watch list of all the sector plays, and then scan for the most likely charts. I'll either set alerts at key technical break out levels, or sometimes take a leap of faith and start building positions early.

Either way, discipline is still paramount. Identify relevant exits, and hit that exit once your trade has ceased to do what you had hoped it would. Keep those losses managable!

Alan