nftrh plus

NFTRH+; Depomed (public)

I closed out a very successful DEPO trade today because…

  1. There is still some patent risk (though odds favor a positive resolution, IMO)
  2. The reason for the big rise is a Reuters piece about the company relenting to activist investor pressure to put itself up for sale, and…
  3. It is just about at the original NFTRH+ target of 24.40 per the chart…

depo daily chart

Disclaimers from a non-genius, non-guru, non-trading captain, non-casino patron…

I got played by the breakdown below the neckline for a very small loss (if memory serves) previously.  Then I watched as DEPO tore back above the neckline.  I then bought the next pullback to the neckline.  Another issue is that when factoring in another trade (on the Biotech sector using IBB), the gains are significantly less because I allowed myself to be shaken out for a loss on a whipsaw breakdown.

Moral of the story?  Well, it’s not to subscribe to some genius fly boy who will make you coin.  It is that we should always keep risk vs. reward in mind, understand that charts are just charts and the markets are full of promoters who want to show you great trades like the above, but also want to keep the other ones from the light of day.  We’ll have none of that here.

The best I can say is that I’ve made money in 2016 (currently preserving most of it) and NFTRH+ has had some great ideas like INTC, CRY, IRBT, etc.  We have also had some of the other kind.  But it’s about outweighing the bad with the good, and that is exactly what we’ve done.