Shares of Fulcrum Therapeutics (NASDAQ: FULC) soared 205% on the morning of August 10, 2021. Before jumping 205% it had a trading average of around $7.50 per a 3-month chart on Benzinga Pro. This increase was year-to-date high, as it reached the same price as of last year’s high. Fulcrum Therapeutics was the highest mover of the day based on the great news it released.
Fulcrum Therapeutics is a clinical-stage biopharmaceutical company that developed a proprietary product engine used to identify and validate cellular drug targets that can modulate gene expression. Fulcrum Therapeutics is based in Cambridge, Massachusetts.
The recent news that surged Fulcrum Therapeutics was that it reported results regarding Phase 1 Study of FTX-6058 for sickle cell disease, showing proof of mechanism and proof of biology.
If you are interested in a great biopharmaceutical company, learn how to buy Fulcrum Therapeutics! The stock markets offer several options for investors, but retail investors can make gains with technology companies that feature a wide variety of innovative ideas.
How to Buy Fulcrum Therapeutics (FULC) Stock
FULC stock had a significant break in the moving average and a 1,000% increase in volume in 1 day. The average trading volume was 171,693 per day. On August 10, 2021, FULC trading volume was at 100,000,000 for that day. With that type of volume in a stock, it seemed to grab many investors’ attention. It is very uncommon to see such a spike in trading volume on a given day.
Fulcrum Therapeutics is one of the few companies that have research and development focused on improving the lives of patients with genetically defined rare diseases. Fulcrum Therapeutics also has plans to meet with the Food and Drug Administration (FDA) to determine the regulatory path for losmapimod in FSHD. The company is planning to do this near the end of 2021.
As reported by Benzinga Pro, FULC is up 100% in sales from 4.40m up from 2.00m year to date. This is a 120% increase, which is significant considering the consensus gave it only a 3.23% increase.
Before investing in FULC, you must learn and understand the following steps on how to buy this stock. It is important to know the different order types and to know the different promotions brokerages offer.
Step 1: Pick a brokerage.
Before you can invest in any company, you must first select a brokerage to execute your trades. Now that most brokers have moved away from a commission-based model, you can purchase FULC shares free of charge — regardless of which broker you choose to buy into or sell out of your financial instruments.
Define your strategy, then choose a brokerage that offers the necessary tools to carry out your investing strategy. If you need some practice before putting your hard-earned money to work, select a brokerage that offers paper trading.
Finally, pay attention to any promotional offers from brokerages. You may end up with bonus funds to trade with, a free stock for you and your friends or numerous other potential benefits as you purchase additional shares.
Step 2: Decide how many shares you want.
Now that you’ve selected a broker, you need to decide how many shares of FULC you want to buy. Some factors to consider include your age, time horizon, risk tolerance and reasonable expectations for the future of the company.
Investing more than a small percentage of your funds into one company is extremely risky. Before placing a buy order with your broker, you need to determine how much money you want to risk, when you will sell on the upside to take profits and when you will sell on the downside. One option is a stop-loss order to protect your funds.
After looking at the chart and answering these important questions, you can find a favorable price point and purchase FULC.
Step 3: Choose your order type.
After determining how many shares of FULC you want to buy, your job as an investor is not complete. You now need to decide which order type to use.
The most basic order type is the market order, which will fill your order at the current market price. This order type is best used when you are buying a stock with low volatility and trying to do it instantly.
If you want to better define your risk, you should use a limit order instead, which allows you to purchase shares at a set price or lower. When trading an extremely volatile stock like Fulcrum Therapeutics, it may be beneficial to use a limit order because this prevents your buy order from being filled at a price point that results in being down in the stock from the very beginning.
Step 4: Execute your trade.
Once you’ve determined the appropriate order type to use, all you need to do is submit your buy order to your broker and wait for your order to process. Once the order fills, your shares of FULC should appear in your brokerage account.
Pros to Buying Fulcrum Therapeutics
- Advancement: Fulcrum Therapeutics is on the verge of something great within the company. IT has plans to become FDA-approved for some of its products. Also, in the most recent news, it only reported for its Phase 1 study. It could produce Phase 2 and Phase 3 in the near future.
- Low float: On Benzinga Pro, it was reported that FULC had 17.77 million shares. With that amount of shares available for investors to trade, it can really move again with great news.
Con to Buying Fulcrum Therapeutics
- Risk of volatility: Before the recent Aug, 10 news, the stock had no volume. When a stock has no volume it does not move until a significant news break. FULC was only trading around 200,000 volume per day. That is low considering the company size.
Grow Bigger with Fulcrum Therapeutics
Fulcrum Therapeutics released news regarding its Phase 1 studies. Typically in companies in the medical field, they release 3 studies within the development of their product. That means investors should expect Phase 2 info in the near future. The company is also looking to get FDA approval. Make sure to research on its company website for future information, and subscribe to Benzinga Pro to get instant news.
Frequently Asked Questions
Is Fulcrum Therapeutics a good investment?
Right now FULC might not be a buy. Fulcrum Therapeutics has not moved much in the last year and only the most recent news took it to almost new highs. Also, as mentioned, this company is looking to become FDA-approved and could run 100% in 1 day. Do your due diligence and watch the charts before entering in a position.
Should you trade options on it?
Yes, placing a long call with a far expiration would be a good investment. Given that, FULC would be a good investment depending on the premium of the calls being placed.