Replies to post #46235 on lowtrade

[JMMatthews]

BIOAQ Monday and Tuesday could see fireworks. Very interesting situation as the final bids will be in and the judge will make announcements. Buyout should happen imo since BIOAQ owns the world's largest succinic acid plant built in 2015 (est value ~ 180m) and 270 patents (est value ?). But BO from public company or private? I believe the assets massively outweigh the debt so the common shareholders should be fine but there is always the unknown

I have some questions as this is new territory for me. For example if the BO occurs from a private company (i.e. Cargill) and one already has GTC sell orders in place for .50 but the resulting buyout would pay shareholders $1 per share, would the existing sell order hit @ .50 or $1?

Anyone with experience in this? Thanks

[lowtrade]

Want to talk a little about money management. I often say nibble (or take a small position) @ 1st resistance break and go large @ TOP resistance break.

So here's what that is all about. When trading a chart pattern which has both 1st & top resistance levels. One should not expect a complete reversal in sentiment on the first reversal of down trend. Because any change has not been confirmed. Confirmation of a true comeback reversal is when TOP resistance (or previous high) is broken on increasing volume.

That's when both the traders phycology of how they are trading the stock. And the sentiment of which direction the price should go, are in sync.

The break of top resistance shows the phycology of how the stock is being traded has reversed and the increase in volume shows the confirmed reversal in sentiment. NOW your odds for the pattern to succeed and chart target being reached, is in your favor.

First resistance break has less sentiment and the trading phycology hasn't actually reversed yet. So you often see a prolonged stall while everyone tries to figure out New True value. Or it can reverse again and continue down as the original phycology showed.


So basically on any chart pattern play, with both 1st & top resistance levels, you want the odds for success in your favor, before commenting your complete planned cash investment.

By taking the total amount you plan to trade and using 1/3 at 1st resistance and 2/3rds at TOP resistance break. You protect loosing the entire cash amount on an early entry. But by nibbling, then going large, you compound a winner. Increasing returns.

No one that doesn't succeed worst result is only a portion of a portion you planned to trade. Decreasing losses.

It's a capital preservation tactic.

Ascending triangles & channel patterns do not have or need 2 entry levels. Just go large on resistance break, but you can enter is steps if volume is not increasing enough to make you feel confident.