I forgot to say, that when markets and share prices drop, it can spook a lot of people. Many sell to lock that paper loss in. Its human nature at its best, and we all have to act according to our own risk profile.
I try and keep my eye on the prize. Is the science still working? Is the company achieving what they said they would within the timeframes they have said ? Are the results of trials statiscally significant? etc etc.
If the compamy is truckin as it should, i try and buy at and just below the next resistence level. Sometimes to holdem, or if i have too many i would plan on selling them at a support level higher up.
I try and use both up and down moves of the market as opportunity.
Now there is a saying about never catching a falling knife. And this is very true. But i reason if the company is performing as it should, and if its market cap isnt out of line with its progress, time will lift the price. This has worked well. Well except for the two rock diggers that went from being darlings of the market to bust. Ouch. I stay away from rocks now
