Bearish or bullish is about your belief, not your actions. You can be bullish about a stock, and proceed with extreme caution, or with extreme abandon.
I recommend extreme caution. Yet I am bullish. I am buying. And I have lost more money on this stock than I will admit here, and more than anyone else here has claimed to date. Real losses, because I acted with extreme abandon and bought lots of call options that expired out of the money.
I acted with extreme abandon because I was absolutely convinced of the imminent success of Mesoblast. I also acted knowing that if I lost 100 percent of my investment I would survive. I wouldn't be homeless, and I would still have a little bit of money left to invest. And I am investing that in Mesoblast, because I am absolutely convinced of their eventual success. I am still buying out of the money call options, but they are only a small fraction of my total investment. Most options expire worthless, meaning you lose 100 percent of your investment. But even with shares, you could lose 100 percent of your investment.
No matter how optimistic you are, never, ever, invest more than you can afford to lose. And really ask yourself, honestly, if you really did lose it all and could afford it, could you live with yourself after you lost it? Could your spouse?
One way I live with myself is knowing that I am investing in a company that will likely end up saving hundreds of thousands of lives. Adults and children experiencing horrible, painful, excruciating illness. And, from a selfish perspective, if I catch Covid, I really hope Remestemcel-L will be available as a potential treatment for me. I am high risk in a highly populated area of the U.S., and still unable to get the vaccine.
If I was giving financial advice, which I am not allowed to do, I would say to decide on how much you want to invest in Mesoblast, and put the money in three piles. 1. Most of it in a long term hold 2. Some of it to treat as a trading parcel. 3. Some of it in cash to take advantage of price drops. You can play with the trading parcel and cash to deal with your itchy fingers, and if you end up being good at the day trading thing, you could end up lowering your cost basis. But you keep that long term parcel to ensure that you don't miss out on any blockbuster announcements. After a blockbuster announcement, you may want to take some profits and reduce your risk going forward.
But don't take this as financial advice. Take it as an example of a strategy that some people use, and consider it along with other options that might work better in your particular situation. One option that is probably going to bite you in your arse is to put all your funds into a trade that is based on charting, with a speculative stock that is entirely driven by news events that charts are incapable of predicting.
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