We should all ask ourselves if we are Speculators, Traders or Investors especially vis-a-vie AVXL as we approach a mini-binary event.
Clearly, frrol expresses sentiment of a level headed investor. Not to put a value judgment on any particular style, however one might assume to be an investor in AVXL one might need to possess an abundance of CBD's patience and perspective.
Speculators are looking for the homerun and might be heavily basing their thesis on probability that the 12 weeks results are well received by the market. Speculators need big wins to offset multiple losses. Time horizon 2 years
Pure traders are not invested in the company and follow price/volume momentum and other indicators to enter and exit trades. Many large and skilled traders in this stock some who no doubt have made out very well.
Investors have a longer time horizon of 5 years or more. Believe in the company, it's management, pipeline and some of the speculative events but are prepared to stick it out and dollar cost average in over many years.
Many here claim to trade around "a core" but is the core a speculative core or an Invested Core?
One might ask themselves if the unthinkable happens and the 12 week data is not well received and the stock price tanks what will they do? (I firmly believe that it will be good but I have seen small caps take big dives on outstanding data- witness Infinera upwards earning surprise late last year met with super drop in share price) A speculator might get a bad case of "get-even-itis" and move to the next hot money play.
A trader might sell all and hope to buy back lower and sell again on the bounce off the low, or some technical pivot point. An investor might cost average down and load the boat "knowing what they own" and not be focused solely on A2-73 realizing as they knew in the beginning that this is a very early stage biotech, one that should be held until the original thesis fails, five years or more.
One might ask them selves what if stock skyrockets? I think most all would take some off especially after being conditioned by the last parabola. But what if it continues to rise based on some catalyst (like BP partnership, etc.) quick on the heals of spike?
I am not suggesting or advising anything nor making any value judgments or predictions, just food for thought or discussion.
I am now on IndoChina Time so I miss most of the intra-day action. GOOD LUCK TO ALL! And Go AVXL!
