Biotech Breakout Trader - Frequently Asked Questions

Biotech Breakout Trader - Frequently Asked Questions

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I received dozens of great questions about my biotech stock-picking formula and my new Biotech Breakout Trader. Below Ive answered the most important and most frequently asked.

1) Your system would probably be even more effective if you did not sell ALL your position before the catalyst date.

If I was a great trader with impeccable timing skills, you might be right. But Ive found that its much safer and more reliable to sell before the catalyst and move on to the next opportunity. I only miss out on a small portion of the profits, without exposing myself to all that added risk.

Of course, if you dont mind the added risk, you could bank your initial investment and gamble by holding through the catalyst. I talk about this more in the DVD bonus that comes with my Biotech Breakout Trader. Ill have all the details on that for you in a few days.

2) Since you started with so little in your account, are you planning to make the membership fee affordable to the average investor who has lost lots the last three or four years?

If you look at my system as a cost, then its unaffordable at any price, but its an investment that has the potential to return many times the membership fee on just your first few trades.

Besides that, if I price the advisory too low, Ill attract tens of thousands of investors and that will render my system unworkable as my subscribers alone will drive the stock price up and down. Therefore, I have to price it to limit the membership numbers.

3) The audited performances start from March 2009: the beginning of a mega bounce-back rally AND stop in June 2011, right before this summer disaster. It would be interesting to see how the portfolio has fared in recent dire markets

Like everyone else, my portfolio took a hit in August losing around 10%. But thats just something thats an unavoidable part of investing. Its the long term returns that really count.

Besides, which Im already up in September, so that August loss is just a blip on the radar.

4) If the FDA declines 70% to 80% of the applications for new drugs and devices, why not concentrate on buying a put option or at least selling short that stock? Youd make more money in a faster time frame. Plus, with options, your only risk is the premium you pay for it.

I have used puts and shorts to make some nice profits on the downside. However, Ive been burned, as well. The fact is, puts and shorts are high-risk vehicles that I dont recommend to any but the most aggressive investors who can stand to take those risks.

My expertise lies in profiting on the upside and its where Im most comfortable and that is what I share in my service.

However, we do talk about what we call the Run-Down as well as options straddles. These arent my specialty, but I have made healthy profits trading in these methods. But again, they are only for investors who can stand the added risk.

Read Full Article Here:

==> http://biorunupreview.com/biotech-breakout-trader-questions-and-answers/

About the Author:
Check out the “Cold-Blooded Investor’s Guide” here
Click here to watch Mark’s “Reckless, Gullible and Greedy” video right away



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