After looking at rapid drops of cheap biotech stocks, I got interested in those with slow declines over extended periods.
ENZ (Enzo Biochem, Inc.) is one of them.
Continue reading “Downhill for no reason?”
Downhill for no reason?
Dropping biotech stocks
I’m slowly getting into biotech stocks. To get started, I looked at charts of cheap stocks, generally below $10, to see how they trade.
Property is boring
Around the time I was slowly getting into stock trading a friend asked me why I don’t consider property development instead. She’s had some experience with it and found it rewarding.
But property is boring, working with builders is frustrating and dealing with tenants is tedious! Right?
My new playground
I mentioned recently that I have finally started trading Bitcoin. There are two great aspects about this new endeavour:
- Trading is free.
- Bitcoin’s price rise compensates for my losses.
Thus, for me Bitcoin trading is essentially a safer playground compared to my stock trading account; a bit like a soft play park for toddlers.
Fees can kill you!
Due to two disappointing trades recently I started thinking more about exits and returns. Are 3% or 4% a good return per trade? Should I aim higher, risk having to stay in a trade for longer and potentially suffer through a temporary downturn or eventual loss? What is the effect of trading fees on my returns?
Building my watchlists
Starting out I thought I’d need to create a brand-new list of tickers for every trading day because I was mainly looking into day trading at the time. Listening to the Chat with Traders podcast offered me a new idea. Quite a few traders there seemed to focus on just a few stocks. How many “a few” actually means differs from person to person. However, the idea appealed to me.
Expectancy – Reward for invested effort
Expectancy is suggested to be an even more important metric than accuracy to evaluate your trading performance. I see it a bit like a contractor’s day rate – the pay per unit of invested time with effort and experience being factored into the charge. Only that expectancy denotes your pay per trade with invested time and effort being rewarded (or not), and it is more of an average rather than a guaranteed amount per unit.