I got a little ahead of myself on $AVXL this morning. In hindsight, my first trade was a little premature. Another instance where being afraid to miss the big move got me in trouble. The news released today was a better version of the PR from earlier this month.
My assumption this morning was way off. I figured this would pop at the open, followed by a sell-off. They re-released the news with a better spin to increase the stocks price. A lot of people from earlier this month were pissed at short sellers for driving this stock back down after the first announcement.
I get it, everyone wants to believe in better treatment options for Alzheimer’s. That could be a big reason why so many people got on-board and became a cheerleader for this stock. As a trader, I should of remembered the large number of $AVXL supporters on StockTwits and Twitter from last week.
I was really bearish on this stock at the open. I need to work on providing an equal balance for both sides of the trade before entering it. Being too bullish or bearish is a great way to get trapped in a losing trade or stopped out over ignorance.