Honest question from a relative biotech stock newbie
So I bought MDGN last year at 4.8 with the intention of holding it long term - think it's a winner. Still do - I not only held it but bought on the way up. Watched it trickle down from 16 and this is just painful. Will not be such a pig next time and will at least pull out initial investment - lesson learned! Anyway, I admit that I am freaking out that it has dipped below $5. Any words of wisdom?
Biotech tends to attract a lot of short term investors and day traders. As a long term investor you have to have a stomach of steal to stay in for the long haul. Yeah you should have atleast covered yourself and just played with profit, but hindsight is 20-20. This will continue to trickle down until theres some developments. That doesn't mean with trials, it could easily just be an announcement that some fund likes this stock or that an insider is buying. I'd continue to hold it in your case, because your back to square one. Itll get a pop soon enough.