Help Finding Litigation Setups?

[SamM 10]

Hi All,

 

I am a total beginner to trading. I opened a brokerage account and started making a few trades to learn the ins and outs in May.

 

The big movement in BP from the bad press got me thinking: If only I had known in advance that the case was going to court, I could have followed it closely, waited for the ruling and gotten in early on the dip.

 

Same for the Parker v. Qualcom earlier this summer and Apple v. Samsung, etc.

 

Is this a viable strategy? And if so, how do I find upcoming litigations that aren't making press right now, but are likely to make press and cause some stock movement when they are judged?

 

Thanks in advance for your insights.

-Sam

[jpennybags 11]

Hi All,

 

I am a total beginner to trading. I opened a brokerage account and started making a few trades to learn the ins and outs in May.

 

The big movement in BP from the bad press got me thinking: If only I had known in advance that the case was going to court, I could have followed it closely, waited for the ruling and gotten in early on the dip.

 

Same for the Parker v. Qualcom earlier this summer and Apple v. Samsung, etc.

 

Is this a viable strategy? And if so, how do I find upcoming litigations that aren't making press right now, but are likely to make press and cause some stock movement when they are judged?

 

Thanks in advance for your insights.

-Sam

 

The ole "ambulance chaser" strategy? I think you may find this to be a somewhat specious.

 

Unless you understand a great deal about corporate law, and likely settlement outcomes I think you would find it difficult to accumulate shares at the right time You would also have to be able to gauge what the settlement means for the company going forward (there are plenty of very bright people that do have a grasp on these things, and they are highly compensated for their analysis). If you have deep pockets, and you understand all this, then nothing wrong with putting the trade on. I mention "deep pockets" because your assessment may be spot on, but you're too early.

 

I've the notion: "you're not that person". A better strategy for you would be to allow the market and price action to dictate your trade. Allow the dust to clear, let the market decide what it all means, and wait for the trend to develop. Nothing wrong with what you're trying to do, just let the market make the call...

[SamM 10]

Thanks for the reality check jpennybags,

 

It is a bit outside my area of expertise. It's probably best for me to focus on whats worked for me so far then try and change tactics.

[jpennybags 11]

Thanks for the reality check jpennybags,

 

It is a bit outside my area of expertise. It's probably best for me to focus on whats worked for me so far then try and change tactics.

 

Like I said... nothing wrong with what you're trying to do. You should seek out these opportunities. Just understand that you can be "right" and still be "wrong" if you're too early. It makes no difference what you believe to be true. It's what the market believes that counts. And... as someone way bigger than I said: "the market can remain irrational longer than you can remain solvent".