View photo.Anyone who trades or invests in biotech stocks knows how volatile they can be, according to Adam Feuerstein.Feuerstein is a senior columnist for TheStreet.com, and he recently joined Benzinga’s #PreMarket Prep to talk about how he keeps track of what’s going on in the biotech sector.
“I think the most important thing for investors in the biotech sector is just to sort of have a calendar of events,” Feuerstein said.
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The trick with biotech stocks is that they can double in a single trading session on the news of positive results from a clinical trial, Feuerstein said. He explained that this means that the key to following the sector is often knowing what kind of events are happening.
“You don’t want to be caught surprised when a company announces results of when there’s an FDA decision,” he said.
While there isn’t any one single source or website where traders and investors can go to in order to keep track of all the activity in the industry, Feuerstein said he does his best to help facilitate that by putting out calendars and writing about potentially stock-moving events in advance.
FDA decisions are set on particular dates, Feuerstein said, but announcements for clinical trial results can be less definitive. He
“Knowing the event is happening doesn’t necessarily help you predict what’s going to happen, but it’s always good to know in advance,” he said.
Check out his full interview here:
Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.
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