So I've only been trading for 2 months, and I'm being being very active so far (buying and selling within a few days to a few weeks). I'm also detecting an early trend in myself: I'm pretty good at gauging entry points, but I flat out SUCK at knowing when to sell, especially it seems with Biotech stocks. Two painful examples this week: INO bought at 13.3 sold at 17.2. If I waited 2 more hours coulda sold at 22.6. NVAX bought at 45, sold at 50. If I waited another week, coulda sold at 59. Wondering two things: Is this just the nature of Biotech and hopefully I'll get better at it with more experience? Should I be learning about Options? Could I be using them as insurance against my own bad sell decisions? Thanks in advance for any advice general or specific.
You will never constantly nail the exits properly. I know it seems like missed opportunity, but in time, just accept a win is a win and lock that profit in!
Word! That's been the mindset, lock profits in and accumulate that way. Just wanna get better at the timing.
Biotech stocks do tend to show a more volatile behavior than other stocks. When a stock price moves due to a real catalyst(expected clinical trial results) the speculations are strong. Try analyzing your trades along with the volumes + catalysts timeline and see if pattern exists.
And to add.... DUDE !! You have only been trading a couple of months, and you want to be good at day/week trading, and options too!!?? Two words, Slow (the hell) down !
Yes, biotech stocks tend to be volatile. No amount of experience will give you the ability to know when the best time to buy or to sell is. Options can be used to lock in profits, aka "using them as insurance against my own bad sell decisions?"
Perhaps if you wait until the stock drops until you see a past peak you will closer to the peak? I once heard of a strategy that bought if the stock went up three times in a row, held if it fluctuated, and sold if it dropped twice. Just remember, in order for you to buy someone must be selling. Ask yourself why they are selling. I'm finding I prefer companies that communicate well and have positive things to say. When a company gets quiet they may be in trouble.