So at this point it might be worth determining how much money you would be willing to lose completely, in exchange for the possibility of a 450% return on your money, within a year or two.

When you come up with that figure, then you may wish to consider investing half of that amount at the current level. Then, if MNKD drops further, to the monthly moving average line, for example (currently at $4.22), then you may choose to add to your position, using the remaining half of your money that you are willing to lose completely.

Using the above-outlined strategy, you will either earn a very nice return on a small investment in MNKD or an even better return on an even larger investment -- or you will lose 100% of your investment, which you were willing to lose, anyway.

-- Written by Ben Brinneman in Charlotte, N.C.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.

You can follow some of their free trades and tips on Twitter at @csquaredtrading.

If you liked this article you might like

Pharma Bro Martin Shkreli Awaits Jury Decision in Fraud Case

Mannkind in Free Fall After Changes to Insulin Product, Sales Force

Mannkind Stock Drops Following Changes to Its Insulin Product

Laser-Maker Cynosure Leads Biotech Movers Ahead of Market Open

Insulin Drug Offers Hope for MannKind