by alanh | May 17, 2016 5:04 pm
I thought long and hard about this title……tacky as it is, this seems as good as any. My contention is that Bio is a gamblers game, where most investors have zippo idea of the science, and the science takes soooo long to bear fruit that watching paint dry seems like a knee jerk reaction. Many gamblers just trade the news. The consequence is that, win or lose, they overract to news!!
The aim here is to exploit that over-reaction for in-out profit. Its a different form of gambling, so dont bet more than you can afford to lose without a wry smile.
Bets are like boy/girlfriends…..you have some fun while it lasts, but its best to never look back. I aim to snaffle 10%….(so when did you last get 10% per month from bank interest? ) You ’could hang on for a 100% win/lose if you like (see $sphs since dec 14 2014) But Im setting 10% as the benchmark. The plan is to monitor/buy/short stocks that have hit a catalyst, on the basis that the sp always (?) overracts. So, as catalysts happen, we will trade the opposite direction. Having made or lost roughly 10%, we’ll be out.
DONT SET A MECHANICAL STOP LOSS…..Guaranteed the whipsaw will take you out for a loss. You have to monitor end of day prices, then exit for good or bad. If you’re keen, you can always re-enter lower or hang in there…..thats your call, so dont blame me.
Have fun with a play account or, if you’re convinced, bet some minor dosh…..but never more than you can afford to wave goodbye to.
Let the fun begin.
Source URL: https://www.stockgumshoe.com/2016/05/microblog-alans-trading-game/