Biotech Breakout Trader - Mark Messier Q&A session

received dozens of great questions about my biotech stock-picking formula and my new Biotech Breakout Trader. Below I've answered the most important and most frequently asked.

1) Your system would probably be even more effective if you did not sell ALL your position before the catalyst date.

If I was a great trader with impeccable timing skills, you might be right. But I've found that it's much safer and more reliable to sell before the catalyst and move on to the next opportunity. I only miss out on a small portion of the profits, without exposing myself to all that added risk.
Of course, if you don't mind the added risk, you could bank your initial investment and gamble by holding through the catalyst. I talk about this more in the DVD bonus that comes with my Biotech Breakout Trader. I'll have all the details on that for you in a few days.

2) Since you started with so little in your account, are you planning to make the membership fee affordable to the average investor who has lost lots the last three or four years?

If you look at my system as a cost, then it's unaffordable at any price, but it's an investment that has the potential to return many times the membership fee on just your first few trades.
Besides that, if I price the advisory too low, I'll attract tens of thousands of investors and that will render my system unworkable as my subscribers alone will drive the stock price up and down. Therefore, I have to price it to limit the membership numbers.

3) The audited performances start from March 2009: the beginning of a mega bounce-back rally... AND stop in June 2011, right before this summer disaster. It would be interesting to see how the portfolio has fared in recent dire markets...

Like everyone else, my portfolio took a hit in August — losing around 10%. But that's just something that's an unavoidable part of investing. It's the long term returns that really count.
Besides, which I'm already up in September, so that August loss is just a blip on the radar.

4) If the FDA declines 70% to 80% of the applications for new drugs and devices, why not concentrate on buying a put option or at least selling short that stock? You'd make more money in a faster time frame. Plus, with options, your only risk is the premium you pay for it.

I have used puts and shorts to make some nice profits on the downside. However, I've been burned, as well. The fact is, puts and shorts are high-risk vehicles that I don't recommend to any but the most aggressive investors who can stand to take those risks.
My expertise lies in profiting on the upside and it's where I'm most comfortable — and that is what I share in my service.
However, we do talk about what we call the "Run-Down" as well as options straddles. These aren't my specialty, but I have made healthy profits trading in these methods. But again, they are only for investors who can stand the added risk.

5) Would your service also offer a support group? A phone number where we could talk to a "Course Counselor"? I think that's vital when entering a new venture.

As you'll see, my service tells you exactly what to buy, the price range to get in at and exactly when to sell. Your really don't need a counselor, and if I were to provide one for members, I'd have to charge much more for the service.
However, my service does include twice-monthly live webinars where you can ask as many questions as you like. And you will be given my private e-mail address, where you can send me questions, as well.

6) If too many people pile into these small cap stocks, it will automatically drive the price sky high and then members won't be able to get out at with a good profit before the catalyst. Have you considered limiting the number of subscribers? -WINNER-

You are absolutely right that if I have too many members, they'll be able to move the price of the stock. So I need to limit the service to around a small number of subscribers, and when I reach that level I will stop accepting new members
Also — you don't have to wait for my buy signal to get in. All my potential trades will show up on my Clinical and Regulatory Catalyst Calendar months in advance — and on another freebie that comes with the service, my FDA Roadmap.

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About the Author

John Gilmore Forex Income Engine Trade Alert Software is the third version of most popular Forex Income Engine course created by Bill Poulos and his son... (show bio)

adhy 12:02:00 AM