How do you book 31.8% gain in just 15 days?
It starts with knowing WHAT to trade, WHEN to get IN and WHEN to get OUT.
Take a look at the stock chart below for Cerulean Pharma (NASDAQ:CERU)
(charts courtesy of www.stockcharts.com)
See the big spike in the chart? This stock went from $8.00 to $10.54 in just 3 days. That's a gain of $2.54 or 31.8%.
The stock sold off after that - and in fact is now back around $6 - but that doesn't matter because Investors who knew this move was coming made their money by selling on that spike.
A Savvy Group of Investors
There's a savvy group of investors out there who know when certain stocks are about to make moves like this and if you know what to look for YOU can be part of this elite group.
Stock moves like this actually happen quite often in the market. To drive profits to your portfolio, the key is to know WHICH stocks are poised to skyrocket BEFORE they move.
In other words, as an investor you need to Get Ahead of the Curve.
How You Could Have Seen This Move Coming
To find stocks that are poised to make large moves, follow this 3-step process. Briefly the 3 steps are:
- Pay Attention to the News
- Know (or learn) some relevant background
- Skate to where the puck is going (trade Ahead of the Move)
The steps are simple enough to understand but there is a lot of work that goes in to doing them right.
But we use this basic process every day at Red Acre Investments to find great stocks.
Astounding Returns
To see the kind of returns we get with this method check out our Case Study of 4 Epic Trades in 4 Months.
These trades produced astounding gains of over 90% each!
(Click the image to access the case study.)
Case Study - Applying the 3-Step Process to Cerluean Pharma
Step 1 - Pay Attention to the News
In the case of Cerulean Pharma, step 1 was when the company TOLD investors that they would be reporting new clinical data along with their Q4 earnings release.
We happened to hear this directly from Cerulean Pharma's CEO, but you don't need inside access to get this kind of news.
Cerulean Pharma told investors the data was coming during a presentation at an investor conference.
The webcast of that presentation was freely available in the investor relations area of the company's website.
Step 2 - Know Some Relevant Background
At Red Acre Investments, we call events like the release of new clinical data Binary Events.
The chart above shows that the effect of the new data on CERU's stock price was immediate and large. That's why we call it a Binary Event - either the news is good or it's bad - and the stock reacts accordingly.
Knowing that new clinical data was going to be announced, we then dug into what exactly CERU does and what the data was likely to show.
In step 2, for biotech stocks, it helps to have some science background - but it's not absolutely necessary.
The key thing is to know how to find stocks that will skyrocket.
We show you how to do exactly that in our Case Study about 4 Epic Trades in 4 Months.
Step 3 - Skate to Where the Puck is Going
This is the easy part.
For CERU we knew that there would be new clinical data in the middle of the month, but we didn't know the exact date.
We started buying CERU stock on the 4th. When the data came on the 19th, just 15 days later, we booked a 31.8% gain.
The trick was to own CERU BEFORE they announced the date of their Q4 conference call because investors who were expecting the new data would start the stock moving as soon as they knew the date of the call.
How Often Do These Kinds of Moves Happen?
The CERU Case-study above is great - but that's just 1 stock in 1 month. In order for this to be a viable investment strategy, you have to be able to apply it over and over again.
For biotech stocks, there are a half-dozen to two dozen binary events EVERY SINGLE MONTH.
In fact, in the same month that CERU gave us 31.8% gain, we covered 20 stocks. Cerulean Pharma wasn't even our best trade - not by a long shot.
Take a look at the chart below for Esperion Therapeutics.
In the same month that CERU spiked, ESPR yielded us a 90.1% gain.
ESPR is well on it's way to being the 4th stock in 4 months that have gained 100% or more very soon AFTER we told investors to buy them. This investment strategy just flat out WORKS.
Case-Study - 4 Epic Trades in 4 Months
In a short 4-month period, we used this method to alert our subscribers to 4 stocks that produced astounding gains of over 90% for each stock.
To get an in-depth case study of these 4 stock picks - including:
- Proof of our recommendations
- The trading afterwards leading to >90% gains each
- How you can apply this method for yourself
just click the image below and fill out the form.
