RE: Newbie question...12 Jan 2022 08:55
Hi Andy, well unfortunately this is how you (and we all) learn ie the hard way.
Theses BB's are actually pretty useless in helping newbies. The people who know the subject can't really help, because it makes no difference to the outcome. So we can spout how great the tech is, how good the BoD are etc etc, but none of it makes any difference to the outcome. Plus basically they are echo chambers and anyone who takes a different view (ie bearish) will be hounded by some and these views will be dismissed as deliberately misleading and deceitful. So don't expect any balance on BB's.
Small bio-pharmas are probably the riskiest of all plays, but you would not think it from reading here and the £137 per share forecasts.
Plus there is a world of difference between the SP and the company (any company). Timing is everything.
There are 2 things at play, one is the company and one is wanting to make money on buying and selling.
The company is fairly irrelevant if the object is to make money.
If you are going to go on fundamentals then you need to understand balance sheets, various ways of how companies are valued etc etc so as to recognise an undervalued company.
But whatever system you use, I would recommend you have a plan.
What price you want to buy in at (and why,) what price you will sell at if it goes up, ie your target. What price you will sell at if you are wrong and the SP goes down, so you can calculate the potential loss and there knowing these 2 figures allows you to see what capital you are risking (loss) for the the reward, (selling out at a profit) and a timescale you expect it to happen in.
These very basic parameters should be figured out before you purchase the stock.
And the biggest lesson of all is to protect capital. You have to stay in the game.
So Never, Ever, Ever, Ever, bet more than you can COMFORTABLY afford to lose. (you will though)
Good luck