It ain't bragging if you can do it. Here is an example of a speculative trade in the shares of AVXL, Anavex Life Sciences. It is a biotech company that is developing medicine to cure Alzheimer's.
About two years ago AVXL met all the criteria to be a speculative buy and so I did. Over the next few days I was really happy because it slowly climbed higher from $0.45 to $0.55. That's when you know you have a good chance at winning when the price moves in your favor immediately. But my happiness was short lived. A few days later it started drifting lower and lower and for the better part of 18 months the price just dropped. And then a few months ago it started to recover and started receiving good news about FDA approval and Phase II results. Within a few weeks it rocketed to $1.71 and now has settled to $1.25 (nearly a triple!)
So, what did I learn? I learned to adjust my buy criteria and developed a strategy to add to my position only under certain conditions. But most importantly I learned that it can take up to two years to see the significant results and high profits you were expecting.
Have I sold AVXL? Not yet. I think it can go higher but if it gives me sell signals then I will follow them.
About two years ago AVXL met all the criteria to be a speculative buy and so I did. Over the next few days I was really happy because it slowly climbed higher from $0.45 to $0.55. That's when you know you have a good chance at winning when the price moves in your favor immediately. But my happiness was short lived. A few days later it started drifting lower and lower and for the better part of 18 months the price just dropped. And then a few months ago it started to recover and started receiving good news about FDA approval and Phase II results. Within a few weeks it rocketed to $1.71 and now has settled to $1.25 (nearly a triple!)
So, what did I learn? I learned to adjust my buy criteria and developed a strategy to add to my position only under certain conditions. But most importantly I learned that it can take up to two years to see the significant results and high profits you were expecting.
Have I sold AVXL? Not yet. I think it can go higher but if it gives me sell signals then I will follow them.