For my first real trade, I have decided to buy shares of Relypsa. This stock has recently been on a run after news of receiving FDA approval for a new drug with a $1b+ market. Nasdaq and Yahoo are reporting that analysts have set an average price target of $32, while the stock is currently trading at $20.
In the past, I have been betting on half the average price target, assuming that target is within the 12 month range.
To be extra safe, I will halve that strategy and bet on a quarter of the price target, or +3/-$1.5 from where I get in in the morning.