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This Week’s Biotech Runner

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/19/2024 5 min read

It’s Tim Sykes here.

Every week there are new opportunities to profit for traders.

I’m here to show you how we capitalize on these hot stocks.

And there’s never been a better time …

The 2024 market is INSANE right now!

Without further ado, let’s get right to it!

Yesterday I pulled a 7% profit from a volatile biotech stock.

There are a lot of biotech spikers right now.

Keep that in mind when you’re looking for the next runner this week …

Take a look at my trade notes below:

Source: Profitly

This was a routine trade.

I find dip-buy setups over-and-over again on these stocks!

It’s not a coincidence … The most volatile stocks in the market like to follow specific patterns because people are predictable during times of high stress.

Every spike is a little different, like a snowflake. But the patterns that these stocks follow don’t change.

To help you find the next setup … Let’s look at my profitable trade from yesterday’s biotech.

Study this price action!

We’ll likely see another trading opportunity just like it, today or later this week.

My Trade Process

© Millionaire Media, LLC

First of all … A trader needs to be watching the right stock.

There are thousands of tickers moving every day. But only a handful will actually give us opportunities to profit.

My millionaire students and I, we look for stocks that …

  • Spike to insane heights.
  • Are in hot sectors.
  • Announce bullish news.

That’s our recipe for success.

We can find these stocks using the big-percent gainer scan in StocksToTrade.

It shows us all the biggest runners of the day … 

For example, yesterday, November 18, at 4:20 P.M. Eastern, this is what my scan looked like:

These stocks satisfy the first constraint that I shared above: Stocks that spike to insane heights.

Then, our job is to look at each of the biggest runners and determine whether it fits the rest of our factors.

On the morning of November 18 … HCW Biologics Inc. (NASDAQ: HCWB) spiked 350%* during premarket hours. It was one of the biggest runners from that morning.

When I dove a little deeper, I found it was a biotech stock (hot sector) and it announced bullish news:

The company announced a licensing agreement with WY Biotech to develop an immunotherapy. HCWB received $7 million in upfront payments as well as agreed upon milestone payments and double-digit royalties.

  • It’s a big spiker.
  • It‘s in a hot sector.
  • It has credible news.

This was a no-brainer stock to watch on Monday, November 18.

But I still had to trade it … 

My Trade Pattern

© Millionaire Media, LLC

I snagged a decent dip buy from this runner.

But my position might surprise you … I missed the entire runup.

See, a lot of new traders get distracted trying to take the whole move. They want to hold shares as the price spikes to new highs intraday.

Not me … I’m looking for price action that fits my patterns. It could occur during the bigger spike, but oftentimes I find myself dip buying on the back end of moves.

Take a look at the HCWB chart below, every candle represents one trading minute:

HCWB chart intraday, 1-minute candles Source: StocksToTrade

Here are my trade notes again:

Source: Profit.ly

You don’t need to be first to the trade.

And you don’t need to take the whole move.

Instead, follow my patterns and wait for the chart to match a popular framework.

Concerned you’re trading the wrong setups??

My newest students are using AI to track this price action!

The patterns are always the same … It was only a matter of time until the AI started to catch on.

>> Use AI To Build Smart Positions On Volatile Stocks Spiking Higher <<

Cheers.

 

*Past performance does not indicate future results

 


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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”