Introducing regular new features called “Shark School of Trading”. The focus of these columns is trading management after a symbol is selected.
Picking stocks is easy, but managing stocks as market conditions and price behavior change is the hard part.
When should I give up defective products?
When should you double down on the good stuff?
What is the best way to manage risks and rewards in the short term?
Let’s start with the Beyond Air (XAIR) that I own. Discussed XAIR has low trading volume and is very risky, but my theory is that there is enough potential for positive news to flow, and large insider purchases create a higher level of trust.
current market conditions
As we explained in our first column on Monday morning, earnings and Fed interest rate news are poised to pick up volatility this week as it hits. There is a possibility.
You want to be prepared to add more positions in case the stock price falls due to overall market conditions. If there is a stock movement that is not related to individual merit, it can offer a good opportunity to add to the position.
potential catalyst
The company recently announced a joint venture with Stanford Medical School for its Beyond Cancer affiliate. This association gives you added confidence that the deal is likely to develop quickly.
The company said it will announce earnings after the market close on February 9. At that time, news about the deal may be updated.
strategy
My view of XAIR stock has not changed. There is still a good chance of contract news moving the stock. I take advantage of the minor volatility within my trading range and look for opportunities to further strengthen my position in prolonged market weakness.
As we get closer to the earnings announcement on February 9th, I think there will be positive expectations. If there was a good move before the report, we may reduce exposure and put it back in position as the news is digested. is not a problem.
A developing trading range supports higher moves when the news hits, but it’s important not to open too large a position while waiting.
We want to be in a position to take advantage of weaknesses when market conditions go down rather than fear it.
We will update you on this deal later. Future columns will cover trading strategies for other stocks.
(Note that due to factors such as low market capitalization and/or insufficient public offering, XAIR is considered a small-cap stock. It should be noted that it is more at risk than , with less liquidity and less publicly available information, and that posts like this may affect the stock price.)
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