How to handle a very speculative stock??

Discussion in 'Learn how to trade or invest by asking questions' started by Frznrth, Jan 23, 2019.

  1. Frznrth

    Frznrth New Member

    Hi
    I went ahead and invested in a small speculative stock, Helius Medical. I did so because I really believe that their product is going to be a huge benefit to patients - I work in health care. I'm hopeful that this will translate into a good investment. This part I'm a bit iffy on.

    The stock is mostly "pre-revenue" / "pre FDA approval". It has been approved in Canada and they have 2 clinics up and running. FDA approval is supposed to be coming in the next few weeks (maybe longer with the shutdown - I hear the FDA is still making approvals - just slower)

    The stock fluctuates wildly - people I think try to drive it up and down to suit their needs - not something I am enjoying - especially since it is mostly lower since I got in - of course.

    I am hoping that the FDA approval will cause a nice rise in stock price. Any idea what a realistic peak would be? I have no way to make any sort of educated analysis of this stock. The ones who push this stock throw out these pie in the sky numbers that I am sure can't be based in much reality.

    Assuming it does rise sharply will it likely then go back down just as sharply as people take profit?

    If it goes back down is it likely to stay down for a long time as it is a small company just trying to get started?

    How can I best get out close to the top? A Limit Sell order? If so should I do this on the TSX or on NADAQ? Its a "dual traded stock" - I hear I can sell my TSX shares on NASDAQ. NASDAQ is more liquid but is this a good thing? Will more liquid help to get me a better price or if it is moving too fast will it drop to a lower price that I am hoping for?

    I know I can't expect any real definitive answers to most of my questions - it is a speculative investment. I'm just hoping for some good advice from people I can trust.

    May turn out to be a case study for why I should avoid individual stocks - but I hope not.

    Thanks for your help.
     
  2. Frznrth

    Frznrth New Member

    I am going to use a Stop Sell on the stock. Ideally I would use a Trailing Stop but RBC Investing doesn't offer that - wish they did. Without this option I a planing on readjusting the Stop every day - several times a day. I'm having a hard time though knowing what the Stop should be. A percentage below the bid? A percent below the stock price? Do high and lows for the last whatever time period matter with a speculative stock? If the stock rises above what I am hoping for a reasonable profit then tighten the percentage?
    Thanks for your help
     
  3. Pro_Traders1

    Pro_Traders1 New Member

    So why should we invest in the stock market?
    Hi Everyone,
    No matter how you look at it, your stock picks will be a gamble. It is possible for an undisciplined individual to bankrupt him or herself very quickly. With that being said, there are several advantages of stock trading and investing that far outweigh the risks involved.Firstly, with a long-term focus, there is seldom a market that doesn't rebound. This means that with a bit of due diligence and a ton of faith, you can continually invest in a stock fund whether the market is weak or strong, and chances are good that you'll come out on top eventually.
     

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