After coming off one of my biggest losses in decades, there’s one thing I know for sure…
I won’t be trading aggressively anytime soon.
I know that’s hard for some people to wrap their heads around. If you’re competitive like me, you want to get those losses back quickly.
But forcing trades can only dig you into a deeper hole.
And that’s why if I want any chance of turning it around in the second half of the year, I’ve got to focus on my absolute best setups and managing risk effectively.
That’s why I want to tell you about my weekend trade in the ticker symbol NRXP.
If you’re struggling to find an edge or a good trade in this market, then I think you’ll appreciate my breakdown here.
Not only do I believe this is one of the easier setups to learn, it’s also been working like crazy lately.
Climbing Out Of A Hole
To lose $27,200, as I did in EFTR a couple of weeks ago, is BRUTAL.
I won’t discuss the trade here, but I’ve discussed it in detail on the blog and the YouTube channel.
Maybe you’re trying to come back from losses yourself.
It’s nothing to be ashamed or embarrassed about.
But you’ve got to make some changes, some improvements if you want better outcomes.
My downfall has been forcing too many trades and getting aggressive on the wrong plays…and that’s a recipe for disaster.
But I also know what it feels like to trade at a high level…to trade confidently…win…and show others how to do the same.
The key to getting back on track is to:
- Stop everything you’re doing that’s not working
- Focus on your best setups
One of the quickest and eliminates all the bad habits, trades, and setups you’re losing money in. Think about it like a diet. Most people are told to remove or reduce sugar when they go on diets. That’s sort of what I mean here. If you are not good at trading breakouts, then stop trying to trade them.
After removing the junk, you want to focus on your best setups and try to trade those.
I have several strategies that I like to trade and have made me money in the past and still do to this day.
One of those setups is the weekend strategy.
This specific trade I had last Friday was an absolute beauty.
In fact, I want you to pay attention to it because I believe its a high-probability trade with the potential to deliver abnormal returns.
My Trade In NRXP
Source: StocksToTrade
On late Friday afternoon, a little after 2 PM ET, NRXP issued this press release:
NRx Pharmaceuticals to Host Corporate and Strategic Update Conference Call on Monday, June 5, 2023
Fri, June 2, 2023 at 1:19 PM CDT·2 min read
RADNOR, Pa., June 2, 2023 /PRNewswire/ — NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) (“NRx Pharmaceuticals”, the “Company”), a clinical-stage biopharmaceutical company, today announced it will host a corporate and strategic update conference call on Monday, June 5, 2023 at 8:30 a.m. EDT.
And that’s all I really needed to hear.
Biotechs have been hot lately…and NRXP is telling everyone to be on the lookout for what is likely to be good news.
After all, why would you want to alert someone on the news if it isn’t positive?
From a risk-to-reward standpoint, I liked the trade.
Also, I noticed a trend that these pre-announcements tend to produce bullish outcomes.
Not long ago, we saw it in the ticker symbols MDGL, VRNA, and HEPA.
My Play IN NRXP
Of course, when a company makes a pre-announcement, they want to build up hype.
And that’s really the only thing I’m playing for when I take these types of plays.
My play was to get in on Friday, and be out of the trade before they announce.
In other words, I’m playing how I expect traders to react…and have no real opinion on the company.
That’s why my goal is to get out well before it makes its announcement on Monday.
And that’s exactly what I did.
Source: Profit.ly
Pretty solid trade…a gain of over $500 on $2,550 invested.
https://t.co/lObN3ZHPF0 SOLID solid 25% weekend winner, great way to start the week, my https://t.co/NFpygldTfO newsletter ROCKS!
— Timothy Sykes (@timothysykes) June 5, 2023
Final Note
Apple had its product launch event yesterday. And the stock was raging all day until it released the price of its virtual reality headset.
Betting on how the outcomes of special events will turn out is risky.
I find it better to play the anticipation leading up to the event.
It’s what I did to grab a 21% gain in NRXP.
Good thing I got out before the company announcement because the stock sold off after that.
If you’d like to learn more about my weekend strategy and all the different ways I come up with ways to play it, then you’ll want to watch this.
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