Andrew, That's where I'm going to fail you for the most part. I believe in the charts and the catalysts. I try and get in on certain resistance levels and give it a go from there and set mental stops, get out with a loss if the chart breaks down. Mental ones because I'm mental, but also because I don't trust the system and think they like to take out as many stops as they can at times.
I trust in the chart's past levels, the RSI, MACD, Stoch, etc., and make my moves off of that. NEWS always trumps the chart, the financials are important, but psychology is a big part of the price, so I work off of that. How else can you explain people investing in companies that don't make money? We're all greedy :) Also I'm not smart enough to understand all the complexities that are involved, and figure they can cook the books anyway.
DARA is seeking orphan status and I'm using that as the catalyst and hoping for a short term price movement up based upon the chart. I'll take a $.20-$.30 move and move on.
The daily chart has a nice rounded bottom and it made a nice move recently, and has room to roam. Was hoping it drops down again like it did yesterday (near .65). It might not, so be it.
I've learned from postings from people like Wrinkles (Smurf, $$$Seeker, Sheep, Musthavemusic, et all from Sheff's board too) here on iHub. Avoid the noise, trust your chart method (whatever works for you). Get in, get some $ and get out.
But that's me. Whatever philosphy works for you. So in summary, I'm not smart enough to answer your question :)
These thoughts are just mine, not right, not wrong, just thoughts. Invest in what you believe in, not what I believe in. Do your research, and invest in the facts.
