Week 3 Recap

MARKET RECAP WEEK 3 

This week I didn't get enough time to research and invest as much as I liked to. I made a total of 11 trades on 7 different companies. Starting the week I decided to buy 725 shares of the EA stock for $80.26 a share. I made this decision because I knew about that the company would do well this week because of the release of their new NHL game and the anticipation for the release of their FIFA game. The sales for the NHL game did really well, lots of people loved the game which caused the stock to shoot up to $82.97 a share 4 days later. I sold the stock because I was already happy with the return I received. Currently the stock price for EA is $83.20 so if I kept the stock I would have made a bigger profit, but I am already happy about the return I received. 

Another stock that I was invested in this week is Keryx Biopharmaceuticals (KERX) which is a company that is trying to develop a new drug for patients of chronic kidney disease that need extra doses of iron in their system. I bought the 6015 shares of the stock at $4.60 and sold it for a loss at $4.52. The reason I did sold the stock is because I didn't want to take such a big loss on it. There was potential for the stock price to go up again, which it did to $4.80 today, but I did not want to risk taking a huge loss. I think it was a bad decision to let go of this stock so early because I did not keep in mind that stocks at such a low price can be very volatile, and just because I suddenly took a loss it does not mean that the stock is done. I learned from this experience that I shouldn't be so quick to sell a stock without doing research on why the stock price fell. The Keryx stock price fell because of the orders going on in the market, not because of any major news against the drug. I was too quick to decide and misjudged the situation causing me to take a loss. The next time I decide to take a loss on stocks I'll make sure to do research to see why the stock price dropped instead of blindly selling it.

Lastly a stock I bought during the week that I'm still holding is Durect Corporation, a pharmaceutical company. I bought this week because it was getting closer to the PDUFA date, and it had the potential to get approved.. I did a lot of research on this company and many analysts said that the drug is doing really and the stock price will increase, although it did decrease during the week. The earnings weren't doing too well for this stock. I bought this stock after the earnings were released in early September and it was actually lower by $0.01 compared to last quarter. I still decided to buy this stock because the drug was still developing well and it could be approved which will skyrocket the price of the stock.

Overall this week I did not have as much time to invest and research because I was sick. I fell from 10th place to 13th place but still made $3000 this week. Next week I plan to climb my way back into the top 10 spot and trade a lot more.