A maturing start up pharma ("biotech")company with a stuffed pipeline and lots of cash to play the game.
I'm really not recommending the stock. I'm just pointing out that buy and hold can and does work if you choose good companies. One should also know how and when to take profits. It's not just about buying and never selling. So, even in down markets there will be innovative companies which rise to the top. IMO, TA can help make smarter decisions about buying, holding and profit taking, even for the buy and hold strategist. In fact, this is becoming my method of preference for playing the market. I will state that it is probably coincidence that I have done so well in a down market however, it is not coincidence that I am taking proper action wrt profit taking etc. This was the result of a lot of work in TA. I don't subscribe to the hit and run tactics which many are now employing in the "mania", unless you happen to be very good at TA. I don't have the kind of time to monitor my positions so closely, which is absolutely necessary to benefit from trading. Also, I suspect many aren't as good as they believe (just like any job). Nor do I believe that I am gods gift to TA. I have focused my attention to it and am beginning to benefit. Most importantly, I have learned valuble lessons in risk management. I don't care for over-diversification either. Focus on some things you understand well. This is another valuable lesson I learned from William O'Neil (there are many). It took me over 1 1/2 years of intensive study to learn what O'Niel wrote in "How to Make Money in Stocks". That was my first book on the road to unravelling some of the mysteries of the stock market. After reading numerous books on various forms of TA and other forms of risk management (P&F, trend analysis, candlesticks, MACD, DMI, RSI, bollinger bands and many others, and options strategies), I reread O'Niel and finally fully comprehended what he wrote. I highly advocate people take the time to understand his monumental work. |
