BIEL Update!

I can't complain taking profits, BIEL settled down to my sell price so I am a little relieved. This morning it shot right to .095 and if you look at the graph, those with more time on their hands than I made a ton of money! It then got traded most of the day and settled just over .06. (The after hour spike is a fluke in OTC stocks, it is not over .08 in the AH)

So what do we learn from this? Almost a perfect text-book "buy the rumor sell the news play."

The press has been hyping this thing (not necessarily wrongly), blogs and discussion groups have been throwing around the FDA approvals (The belief was the company would announce at the CC or before) like they were a sure thing and due out today and the company press about its product is great. All these things tied together cause us humans to become very greedy and in an attempt to make a quick buck radically buy a stock up without any real understanding of what they are doing. Those that are fammiliar with this trend can fairly easily take advantage of this and buy on the way up and sell just before the news. The hard part is in the timing, I could have held and attempted to get out at what I thought would have been the peak, however I too probably would have got caught up in the "It's going to hit a dollar today" psychology.

So the Shark Food for today is to see the buy the rumor and sell the news trend with some trading discipline thrown in to round out the meal. How many of your bank accounts return over 100%?

Now, I will attempt to keep my shark sense on this because this company has great potential for all the reasons people are touting. The hard part is taking an investor verses a traders mind set and buying some for the long run. Not ready to do this at this price, if it pulls back below .05 I'll start buying some for an investment purpose. The only other "speculative investment" I own is Cord Blood America (CBAI). For the same reason, I like the CEO, I like the business plan and they have a tangible product...

Happy trading!