Stock market investing

Stock market investing is not for everyone.  It is not necessary fun and can be stressful, and of course people do lose money sometimes.  However, it's not as hard as many think.  It requires time, research, decision making and patience, but you can make money with it and improve your financial situation.

For example, I invested in stocks of Arena Pharmaceuticals (symbol: ARNA) in March for $2.90 per share and then I bought more of the same shares in April when it dropped to $2.20.  Did I panic when the stock was losing value and lost 25% in a month?  Not at all.  I did my research before I bought it for $2.90 and trusted this research.  Was the research perfect?  No, otherwise I would wait to buy all of the shares for $2.20.  But either way, I didn't see any reasons for a panic.

Shares of Arena Pharmaceuticals leaped on May 2nd after the company announced the U.S. Food & Drug Administration will hold a hearing May 10 to discuss the application of the company's anti-obesity medication Lorcaserin (the information about this meeting taking place at some point was public even in March though). The news came as Arena announced that its first-quarter loss was down to $26.6 million, or 18 cents a share, compared with a loss of $39.9 million, or 35 cents a share, for the same period a year ago.  Shares were up nearly 9% to $2.55.

On May 8th shares of Arena Pharmaceuticals were up 18% at $3.19, ahead of a scheduled meeting of a U.S. Food and Drug Administration advisory panel that will discuss whether to recommend approval of Arena's weight-loss drug lorcaserin.

Arena Pharmaceuticals shares rocketed 75% to $6.42 early on May 11th, the day after an advisory panel of the U.S. Food and Drug Administration voted to recommend agency approval for Arena's diet pill lorcaserin.

Could I sell the shares at this price to make a decent profit (today it's $6.61 which is 228% increase from $2.90 and  300% profit from $2.20 price)?  I could, but the thing is when Arena will get a formal approval and start selling lorcaserin company shares should go even higher.  I am not just trying to make a bit of money, but also be a small part of the process of a growth of a company that could make a difference. 

Is stock market investing for everyone?  Definitely not.  But I enjoy the process, and I make money.  You may consider doing it too.  Please share your thoughts or experience leaving comments below.  Also if you are interested in writing for this blog contact me at ilya.rockwell@yahoo.com  Thank you!