Biotech is extremely volatile. The FDA approval process is long and arduous. Plus approval doesn't automatically mean line go up. If your exit is poorly timed, you'll end up losing all your gains.
Palantir is a good example of a company that gets nothing but good news yet the price gets lower and lower. It's not biotech, but it's the same idea. They get government contracts, price goes down. They expand their private contracts, price goes down. They have good earnings, price goes down. The entire market goes down, they go up a little bit.
Stonks aren't as simple as good news = line goes up and bad news = line goes down. It's forward-looking but how much forward and what specific future moment is up for grabs. The news you get today has already been digested and priced-in. The current prices is based on news that hasn't come out yet.
Biotech is extremely volatile. The FDA approval process is long and arduous. Plus approval doesn't automatically mean line go up. If your exit is poorly timed, you'll end up losing all your gains.
Palantir is a good example of a company that gets nothing but good news yet the price gets lower and lower. It's not biotech, but it's the same idea. They get government contracts, price goes down. They expand their private contracts, price goes down. They have good earnings, price goes down. The entire market goes down, they go up a little bit.
Stonks aren't as simple as good news = line goes up and bad news = line goes down. It's forward-looking but how much forward and what specific future moment is up for grabs. The news you get today has already been digested and priced-in. The current prices is based on news that hasn't come out yet.