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To make it clear, I personally don’t have the risk tolerance or financial resources to endure this strategy. While I’m not acting as an investment advisor, my suggestion would be for individuals to steer clear of these strategies.
These stocks have well-defined catalysts, commonly referred to as trials. You might be familiar with the phases — Phase 1, Phase 2, Phase 3, and FDA Approval — in the drug development cycle, especially after witnessing the rapid development of the Covid-19 vaccine. The American Council on Science and Health provides a chart illustrating the approximate success rates of drugs across different clinical trial phases, categorized by the field of medicine for which the drug is being developed.
A quick look at the chart likely reveals that drugs related to ophthalmology have an almost 90% likelihood of passing Phase 1, while oncology-related drugs have a mere 3.4% chance of approval.
The outcomes of these approvals or rejections can lead to substantial fluctuations in stock prices. You can track these events chronologically through the mentioned website: BioPharmCatalyst.com.
Ah, it’s a paradise for those interested in speculative market activities.
A brief review of the FDA calendar on the website reveals numerous publicly traded companies, specifying the disease the drug targets, the trial phase, and the catalyst date.
The approach to this strategy is uncomplicated. It’s remarkably straightforward.
The Strategy: Short biotech after big booms.
Numerous individuals tend to overly respond to positive news, causing the stock price to skyrocket. Even if you’ve missed the initial surge of 1000%, there’s an opportunity to bet against the stock as it gradually returns to a more realistic market value.
A brief examination of a stock such as Sunshine Biopharma will swiftly make this abundantly clear.
Following every surge of positive news, typically a favorable catalyst, the market promptly retraces to almost the same value it held before, once the event is factored in and the market reevaluates what is considered reasonable, especially after scrutinizing trial results in more detail.
In essence, the strategy is to short biotech stocks after significant upward swings, capture potential 1000% or 10x gains, and transform a modest $100 account into a $1,000,000 account in just four trades. However, it’s essential to note that this strategy comes with substantial risk, given the complexity of the biotech sector. While I do not recommend this approach due to its high-risk nature, if you have a penchant for speculative endeavors in the stock market, biotech might be the sector for you.
Unfortunately, it is impossible to attach images, so if you want to check out the idea in more depth, do not hesitate to visit my newsletter - https://ayratmurtazin.beehiiv.com
submitted by /u/Base-Lopsided
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These stocks have well-defined catalysts, commonly referred to as trials. You might be familiar with the phases — Phase 1, Phase 2, Phase 3, and FDA Approval — in the drug development cycle, especially after witnessing the rapid development of the Covid-19 vaccine. The American Council on Science and Health provides a chart illustrating the approximate success rates of drugs across different clinical trial phases, categorized by the field of medicine for which the drug is being developed.
A quick look at the chart likely reveals that drugs related to ophthalmology have an almost 90% likelihood of passing Phase 1, while oncology-related drugs have a mere 3.4% chance of approval.
The outcomes of these approvals or rejections can lead to substantial fluctuations in stock prices. You can track these events chronologically through the mentioned website: BioPharmCatalyst.com.
Ah, it’s a paradise for those interested in speculative market activities.
A brief review of the FDA calendar on the website reveals numerous publicly traded companies, specifying the disease the drug targets, the trial phase, and the catalyst date.
The approach to this strategy is uncomplicated. It’s remarkably straightforward.
The Strategy: Short biotech after big booms.
Numerous individuals tend to overly respond to positive news, causing the stock price to skyrocket. Even if you’ve missed the initial surge of 1000%, there’s an opportunity to bet against the stock as it gradually returns to a more realistic market value.
A brief examination of a stock such as Sunshine Biopharma will swiftly make this abundantly clear.
Following every surge of positive news, typically a favorable catalyst, the market promptly retraces to almost the same value it held before, once the event is factored in and the market reevaluates what is considered reasonable, especially after scrutinizing trial results in more detail.
In essence, the strategy is to short biotech stocks after significant upward swings, capture potential 1000% or 10x gains, and transform a modest $100 account into a $1,000,000 account in just four trades. However, it’s essential to note that this strategy comes with substantial risk, given the complexity of the biotech sector. While I do not recommend this approach due to its high-risk nature, if you have a penchant for speculative endeavors in the stock market, biotech might be the sector for you.
Unfortunately, it is impossible to attach images, so if you want to check out the idea in more depth, do not hesitate to visit my newsletter - https://ayratmurtazin.beehiiv.com
submitted by /u/Base-Lopsided
[link] [comments]
Continue reading...
