BeiGene: Best Biotech Industry Stock Bet Say Portfolio Wealth Builders (NASDAQ:BGNE) – Seeking Alpha
Pgiam/iStock via Getty Images
21st Century paces of change in technology and rational behavior (not of emotional reactions) seriously disrupts the commonly accepted productive investment strategy of the 20th century.
One required change is the shortening of forecast horizons, with a shift from the multi-year passive approach of buy&hold to the active strategy of specific price-change target achievement or time-limit actions, with reinvestment set to new nearer-term targets.
That change avoids the irretrievable loss of invested time spent destructively by failure to recognize shifting evolutions like the cases of IBM (IBM), Kodak (KODK), GM (GM), Xerox (XRX), GE (GE) and many earlier others.
It recognizes the progress in medical, communication and information technologies and enjoys their operational benefits already present in extended lifetimes, trade-commission-free investments, and coming benefits in transportation utilizations and energy usage.
But it requires the ability to make valid direct comparisons of value between investment reward prospects and risk exposures in the uncertain future. Since uncertainty expands as the future dimension increases, shorter forecast horizons are a means of improving the reward-to-risk comparison.
That shortening is now best attended at the investment entry point by knowing Market-Maker expectations for coming prices. When reached, their updates are then reintroduced at the exit/reinvestment point and the term of expectations for the required coming comparisons are recognized as the decision entry point to move forward.
The MM’s constant presence, extensive global communications and human resources dedicated to monitoring industry-focused competitive evolution sharpens MM price expectations, essential to their risk-avoidance roles.
Their roles require firm capital be only temporarily risk-exposed, so they get hedged by derivative-securities deals to avoid undesired price changes. The deals’ prices and contracts provide a window to MM price expectations.
Information technology via the internet makes investment monitoring and management time and attention efficient despite its increase in frequency.
Once an investment choice is made and buy transaction confirmation is received, a target-price GTC sell order for the confirmed number of shares at the target price or better should be placed to ensure realization. Keeping trade actions entered through the internet on your lap/desk-top or cell phone should avoid trade commission charges. Your broker’s internal system should keep you informed of your account’s progress.
Your own private calendar record should be kept noting the date 63 market days (or 91 calendar days) beyond the trade’s confirmation date as a time-limit …….