Binary event stock (stocks, buy, returns, money)

[MrQ2]

Would you buy a stock whose price mostly depends on "yes or no" such as small biotech?

[kickingprop]

I have and would again, but only with an amount of money that I won't lose sleep over blowing...

I've had success betting on small biotech's who's science I understand (My graduate degree is in Organic Chemistry). The key is...don't get greedy. I bet on PRAN a couple years ago, bought it around $2 and forgot about it for over a year because it was only a couple hundred shares... Then I noticed it start climbing and eventually hit $13 before a bad FDA trial result knocked it back down... Luckily I sold around $11.

But for that one case where I hit big...I have had a few be complete losses... which goes back to the original statement, I won't load a lot of money into small biotech stocks...

[02blackgt]

Yes, but just as the guy above me said, only with money i can afford to lose. I own a couple hundred shares of multiple small biotech firms i see potential in. If they do good i will make massive returns, however the chances of this are low. More than likely i will end up losing money but this is the risk i am willing to take since the loses will have no effect on my day to day life.

[mitchmiller9]

I love the excitement around owning a highly volatile biotech stock. I'm an optimist. Instead of worrying about the loss, I lie in bed thinking about the huge gains I may garner if all goes right. It actually helps me to get to sleep thinking about the rewards to be reaped.