There is really only one way to successfully speculate in biotech and mining stocks. First is to find a stock who's price chart is giving good signals and second is a sound money management plan. Of the two the second is more important. Good gamblers, investors, and speculators are considered good due to their ability to manage risk and their money. All the research and good reviews in the world will not prevent you from losing money.
For years I scoured the stock market looking for good stocks to buy using fundamental and technical analysis. What I found was that most indicators are lag and give the buy signal too late or give false buy signals too early. Either way you lose money. Fundamental analysis is usually based on data that is at least 90 days old at best or based on hopes and dreams. Then one day I met a grizzled trader who grumbled about how "dumb" this business of speculation can be. He meant that to speculate in the stock market was actually quite simple if you follow a few rules. Then over the course of a cup of coffee he shared with me his rules for speculating. It was like the heavens opened up and rained down pure enlightenment. Now I had a plan to successfully speculate in the stock market and not be an accidental victim of luck.
Then I learned that speculation is more about controlling your emotion and being able to ride out the volatility until you reach your profit goal. Most guides on this will tell you to simply sell once you are down 5, 10, or 20% and wait for the next opportunity. And they are right but this can be exhausting mentally and costly in terms of small losses and transaction charges. Plus, it requires you too spend your whole day staring at a computer screen and stressing every dip in the stock's price. I made up my mind to avoid this then developed a plan where I could watch my carefully researched stock drop 50% or more and only suffer at 10% loss. This changed everything and suddenly I had a cleared mind and slept a lot better. It did not matter whether I bought too early or made a mistake in analysis because I had limited my losses like the pros do and gave myself every chance to win. And I did.
If you would like to see my ultra-conservative money management plan for speculating please email at [email protected]. Do not worry you will only get one email with a pdf and nothing else.
"The best speculation is a low-risk speculation." Doug Casey, International Man.
For years I scoured the stock market looking for good stocks to buy using fundamental and technical analysis. What I found was that most indicators are lag and give the buy signal too late or give false buy signals too early. Either way you lose money. Fundamental analysis is usually based on data that is at least 90 days old at best or based on hopes and dreams. Then one day I met a grizzled trader who grumbled about how "dumb" this business of speculation can be. He meant that to speculate in the stock market was actually quite simple if you follow a few rules. Then over the course of a cup of coffee he shared with me his rules for speculating. It was like the heavens opened up and rained down pure enlightenment. Now I had a plan to successfully speculate in the stock market and not be an accidental victim of luck.
Then I learned that speculation is more about controlling your emotion and being able to ride out the volatility until you reach your profit goal. Most guides on this will tell you to simply sell once you are down 5, 10, or 20% and wait for the next opportunity. And they are right but this can be exhausting mentally and costly in terms of small losses and transaction charges. Plus, it requires you too spend your whole day staring at a computer screen and stressing every dip in the stock's price. I made up my mind to avoid this then developed a plan where I could watch my carefully researched stock drop 50% or more and only suffer at 10% loss. This changed everything and suddenly I had a cleared mind and slept a lot better. It did not matter whether I bought too early or made a mistake in analysis because I had limited my losses like the pros do and gave myself every chance to win. And I did.
If you would like to see my ultra-conservative money management plan for speculating please email at [email protected]. Do not worry you will only get one email with a pdf and nothing else.
"The best speculation is a low-risk speculation." Doug Casey, International Man.