This is exhausting. I hope this is the last time I have to write a post on how I "traded" NWBO. To me, it is how I invested in NWBO. What's the difference? The difference is if you're trying to make money in the short term or the long term. Investment is long term. Trading is short.
NWBO may have started as a light investment for me. Over time it grew, along with my due diligence.
Last summer, I was up, and I was adding to my position. Then the AF-Buzard fiasco started to deplete my shareholder value, and I found myself along with many here in the red. I was not worried in the slightest. I did not sell my shares beyond a small trigger, to which it turns out I picked up again, too early. Instead of selling any of my shares at a loss I held onto to them. And as I have written many times before, my strategy was to just let my shares age. And I meant that. Yet, the stock price continued to depreciate in value. To me, it represented a sale. But as we all know the sale continued to get better and better. And I was buying more and more shares as the stock fell, essentially taking on more and more risk as the stock fell further and further; and yes, as my investment value fell along with it. But as I was continuing to add more and more skin into the game, I was also lowering my share cost-basis considerable. And, I was extremely confident that the stock value would eventually return. Very confident I could pull risk off the table once it did and that I could get out of the stock unscathed, by deploying other strategies if I had to. But I know how to make money in any stock market condition, including a falling one.
There comes a point where one has to start taking risk off the table or at least start to dig themselves out from being so down under - particularly important if the shorts are in control of the share price. And to me trading-out shares, as the stock moves in ranges is one. It allowed me to lower my cost basis even more, and it is a strategy that works well for me.
Being that there was so much complaining and fear on this iHub - to which I contributed none of, even though I was likely down on my investment more than most and easily could have - I begin to discuss trading. As I started to share my strategy for how I was moving from negative to less-negative, equalizing my risk, folks like Austin, who I have since blocked, continually misunderstood what I was saying and interpreted it wrong. So wrong that I stopped caring to correct it.
I was not day trading the stock in any normal sense of the word. I was not profiting off the back of anything I had ever written or shared here. Instead, I was pulling out some of my at-cost-basis shares. Making money on that money outside of NWBO, and then putting it back into NWBO any time the market went to give it its next smack at whatever the next bottom was at the time. Each time I did this, I was able to lower my cost, pick-up more shares, as the stock kept moving to lower ranges. But, eventually the bottom was reached and the stock started to rise and I used the same "talking some at-cost shares risk off the table", "adding some lower-cost risk back on the table" to continue to lower my cost basis. In the end, I had about 28k in shares across various accounts, with a large portion of shares still under water, and yet my cost basis was somewhere in the $5s.
I spent most of last year being significantly down on my NWBO investment, tying up well over 100k that could have been making money for me on other things. And despite this, I was still able to beat the market last year for my overall trading portfolio, to which NWBO represented a very large percentage of it. An impressive return with only a small portion of my money free to trade. So yes, if I had wanted to trade NWBO to just make money, you can bet I could have done so easily. But that was not what I was doing. It was not until January 2015, I reached the point that I was no longer underwater. I significantly took risk off the table since, as I stated I would. And, yes, once the stock reached my at-cost shares this month, I did sell my $7s, only to pick them up again. And I recently sold my $8.45 at-cost shares, that I had picked up last June, to which I continued to hold even when it was worth less than half of what I paid for it just a few short months later.
My integrity is important to me. I have no issue with anyone trading, there is absolutely nothing wrong with it. I trade stocks too obviously. However, in the case of NWBO, I predominantly consider myself an investor. If I sell out of shares it is to minimize my risk, and not be caught down under on cost on any of them again.
And I hope that clears it up for this iHub finally.
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