Anavex Life Sciences Corp (AVXL)

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Basis for taking an AVXL position.

Interestingly, there are a number of divergent, otherwise unconnected reasons, I see, that equity buyers have or might decide to take an AVXL position.

1. The Investment Advisor Recommendation. In this case, a recommendation in some investor newsletter, blog, or webpage prompts an AVXL buy. The particular reasons the newsletter or investment advisor states are not as important as the recommendation itself. It comes from “someone who knows,” or has “a good record.” Good enough. “I’ll buy some of those.”

2. The FOMO (fear of missing out) Buy. In whatever way, an equity buyer discovers that, at least for the nonce, the AVXL share price is on a steep ascent. The person wants to catch that rise, so “buys low, to sell higher.” Few or no other data or information come into play.

3. The Day-Trading Play. It is noted that the AVXL share price tends, at times, to sharply ascend, then more slowly drop back to some “base price,” Day traders, expert in spotting and playing these moves, go in an out of AVXL positions, making a few percentage points of gains with each buy/sell trade pair.

4. The Technical Analysis (TA) Play. Those confident in TA see and act on various TA buy or sell signals. Trades are based solely on the AVXL or market TA charts and metrics; nothing else.

5. The Anavex Science and Potential Markets Play. AVXL positions taken with these criteria take into consideration the accuracy, validity, and potential applications of the existing, known ANAVEX science, as revealed in scholarly papers, informed postings, research, and corporate and institutional announcements; while also considering the potential markets for the ANAVEX drugs, once they might gain regulatory approval for sales and therapeutic uses.

Each of these will prompt varying time frames in which AVXL positions might be retained.

In Number 1, Investment Advisor Recommendation, positions may be held for some time, contingent on when the recommendations are to play out. Those are likely months or years.

In Number 2, the FOMO Buys, rather short term, for most. When the price ascent levels, time to take the gain and find another equity moving up rapidly. Of course, for some, the AVXL position is then retained for longer-term gains.

Number 3, Day-Traders, are in and out, often within minutes or hours. Nothing long-term here.

Number 4, TA Analysis plays, are probably a bit longer than day-trading. The charts decide.

Number 5, the Anavex Science and Markets plays, are decidedly long-term. Buy, and hold. Wait. Payoffs somewhere in the future; but particularly rewarding when they eventually happen.

Personally, my few thousand shares of AVXL have been purchased, and are retained, because of Number 5, the science and potential markets of Anavex Life Sciences Corp. I utterly reject all of the others, find nothing useful about them at all. But, I dully respect the many individuals who post messages on each of these. I read, and consider them all (but don’t act on any except the science postings). All good people, here; making this one of the most informative iHub message boards.