How I made 60% on, then VRX, counter-trading Bill Ackman
What's going on guys, YoungShkreli in the building
As you'll see I've tagged Bitcoin in this because this is an educational post and not just about BHC (formerly VRX).
I didn't know anything about this company, I just saw an article one day by chance that said Bill Ackman, after suffering something like a 90% loss pulled out of VRX. They mentioned in that article that Bill doesn't quit until well after everyone else has.
Notice the implications of that statement: Bill is the last person to sell something because he believes in his trades until (literally) the very end. That's an unbelievable psychological statement about a market. It had gotten so bad, that even the biggest bull had died.
So, after reading the article, I looked at the chart, saw the ridiculous fall, looked at the book value and said, why not? I put Half of my account into the trade because I figured the technicals couldn't get any worse, the news couldn't get any worse, and the fundamentals weren't actually that tragic.
My entry was at $15.35 on March 8th, I remember because it was one day after my birthday. I pulled out at ~$26 only because I needed to pay bills and I figured I might as well pull it out of there because I made a lot of money and didn't know anything at all about the company.
I tie this to Bitcoin, because I want to tell you guys about ACTUAL bottoms in a bear market. They don't happen when you are watching 24/7. The only time you will catch a bottom is by not caring at all and just waiting and waiting and waiting. Bottoms happen when there is TRUE capitulation. If you don't know or remember, Richard Heart absolutely breaking down was another amazing psychological indication that the market may be close to bottoming.
Bottoms in bear markets happen after capitulation. Always. They don't necessarily recover in a v-shape, they can capitulate many times and form a smooth bottom like the one here in BHC or like in BTC in 2014/15 but that's when they happen. Don't chase. Let the money come to you - it will.
SUMMARY:
Bull markets are said to be the easiest markets to trade in because everyone makes money (until they don't) but bear markets don't have to be that complicated if you know what to look for... and what to listen for...
PS: I think Bill Ackman is completely incompetent at making money as a manager so that helped too. Brilliant guy, I can't emphasize that enough - he's way more intelligent and knowledgeable than I am - but his strategy is absolutely rubbish and he refuses to change. He completely ignores fundamentals AND technicals. He walks into businesses thinking he can single-handedly turn them around. Guess what buddy, if Elon Musk can't, you can't. End of rant.
As you'll see I've tagged Bitcoin in this because this is an educational post and not just about BHC (formerly VRX).
I didn't know anything about this company, I just saw an article one day by chance that said Bill Ackman, after suffering something like a 90% loss pulled out of VRX. They mentioned in that article that Bill doesn't quit until well after everyone else has.
Notice the implications of that statement: Bill is the last person to sell something because he believes in his trades until (literally) the very end. That's an unbelievable psychological statement about a market. It had gotten so bad, that even the biggest bull had died.
So, after reading the article, I looked at the chart, saw the ridiculous fall, looked at the book value and said, why not? I put Half of my account into the trade because I figured the technicals couldn't get any worse, the news couldn't get any worse, and the fundamentals weren't actually that tragic.
My entry was at $15.35 on March 8th, I remember because it was one day after my birthday. I pulled out at ~$26 only because I needed to pay bills and I figured I might as well pull it out of there because I made a lot of money and didn't know anything at all about the company.
I tie this to Bitcoin, because I want to tell you guys about ACTUAL bottoms in a bear market. They don't happen when you are watching 24/7. The only time you will catch a bottom is by not caring at all and just waiting and waiting and waiting. Bottoms happen when there is TRUE capitulation. If you don't know or remember, Richard Heart absolutely breaking down was another amazing psychological indication that the market may be close to bottoming.
Bottoms in bear markets happen after capitulation. Always. They don't necessarily recover in a v-shape, they can capitulate many times and form a smooth bottom like the one here in BHC or like in BTC in 2014/15 but that's when they happen. Don't chase. Let the money come to you - it will.
SUMMARY:
Bull markets are said to be the easiest markets to trade in because everyone makes money (until they don't) but bear markets don't have to be that complicated if you know what to look for... and what to listen for...
PS: I think Bill Ackman is completely incompetent at making money as a manager so that helped too. Brilliant guy, I can't emphasize that enough - he's way more intelligent and knowledgeable than I am - but his strategy is absolutely rubbish and he refuses to change. He completely ignores fundamentals AND technicals. He walks into businesses thinking he can single-handedly turn them around. Guess what buddy, if Elon Musk can't, you can't. End of rant.