How do I make money investing in biotech healthcare stocks? Print E-mail
By M.E.Garza   

When it comes to the best stock tips, its best to remember the famous saying: "Give a man a fish and they'll eat for a day. Teach a man to fish and they'll eat for a lifetime."

Countless of millions of new investors enter the market every year in hopes of making money by trading stocks. It is generally accepted that 30% of those "traders" will make money in the market and the other 70% will give the successful ones all of their money.

We want you to be in that profitable 30% minority, but we can't do it for you. Understand that that you need to take the time to learn and invest in yourself as an equities trader before you invest in someone else. Otherwise you will lose most or all of your money.

Most successful investors have learned to use the BioMedReports FDA Trade Catalyst Calendar as a research tool and they all assume one thing: "The price of a biotech/pharma company's stock will go up as the key FDA decision date approaches. So one of the most simple ways (and there are several) that investors make money is to buy stocks with pending FDA decisions 1-3 months before that key date arrives. Our staff tracks thousands of companies in the sector with upcoming catalysts by indexing news releases, official announcements, SEC filings and even speaking to company officials. Our calendar includes data from several world-wide regulatory agencies.

As decision dates approach, big crowds of speculators and traders start coming in to buy shares of the same stock and the price of that stock goes up. This occurs over and over again as long as the price of the shares for that company was "low" to begin with. Most are.

Look at the charts of stocks that received recent FDA approvals and clinical trial results. You will see how the price of the stock rose tremendously in the two months prior to their recent FDA decision. Over and over again you will find that this pattern repeats itself.

Many times share stock prices will double or even triple BEFORE a key FDA decision or clinical trial announcement!

The key is that you may want to hedge your bet by buying several stocks and not just one, because you never want to put all of your eggs in one basket. What if there is a surprise or bad news from that stock? Think of it as having a multi-pane window... If a baseball or rock hits your window, it will only break one of your panes and not the entire window. Make sense?

Before BioMedReports came along, investors were paying tens of thousands of dollars a year for this FDA calendar information. We gather, update, organize and make the information available to our subscribers for a very reasonable fee. Beware of sites promising free FDA Calendar information. They do not update the data and often publish outdated or flat out wrong information and that will quickly cause you to lose money. Their intentions are often malicious, and while they pride themselves in giving away the information for free, the truth is that they actively hit their members up for "donations" and harvest e-mail accounts and personal data for other uses. Worse yet, they end up causing damage to the bio investment community by flooding the market with bad intelligence. At the end of the day, you get what you pay for.

Remember that when it comes to investing, patience is key. You don't want to rush your investments or trades simply to be involved in a trade. There are thousands of companies in the market and "there will always be another great trade or opportunity."

Our subscribers tend to be very smart researchers who like to make investments with low risk/great upside but most of all you will find that they all share one common trait: Good Patience!  If you're upside down on a trade always remember that you don't actually lose your money until you sell that "bad" stock, so understand the next catalyst and reconsider your position. It may be worth it to hold on for the next event that will bring the stock back or to average down. Be patient and smart with your money- especially before you buy into a company.

We obviously feel is an exciting sector armed with tremendous potential and many key profit opportunities, you must first get a grasp of some of the basic concepts of biotech investing. We suggest that you pick up and read one of the many great books out there about biotech investing. They are well worth your time and energy to read.

Below are some examples to consider...

"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.

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