Nothing gets me more excited than seeing my students find success.
Because in trading, there are no guarantees.
They must put in the work…sometimes they can spend weeks, months, or years without seeing changes to their trading account.
That’s why yesterday’s trade in NAOV was so sweet…
Working grave yard and trading in the day Ive had 4-5hrs sleep since Monday. Almost Feels like Im goimg crazy or its always been that simple.. just follow the plan.. I feel so emotionless almost feels like im crazy how simple it really is.@timothysykes @StocksToTrade pic.twitter.com/IpPjXOhHv1
— .sins (@dotsins) August 30, 2023
Congrats to sooooooooo many https://t.co/occ8wKmlgm students who just NAILED $NAOV and traded it far better than I did, but at least I bought just above $2 and was on the right track! Galaxy50: what a rush $naov in 2.06 out 2.86 Thank you Tim for good lessons, CHE: $NAOV bought…
— Timothy Sykes (@timothysykes) August 30, 2023
Absolutely nailed it, $NAOV entry at 2.04, Exit at 3.88 one of my best trades ever. Thanks @timothysykes for teaching.
— Babak Yaghikosh (@BYaghikosh) August 30, 2023
What makes me even more proud is that I actually lost money on my first entry attempt.
In other words, my students who profited in NAOV did so using their own trading plans.
So what made NAOV possibly the cleanest trade of the month?
Table of Contents
NAOV The Gift That Kept On Giving
On Tuesday Axcella (AXLA) was granted a patent for long COVID fatigue treatment.
The stock went from $0.10 to $0.58.
In addition, the trading volume was insane, trading more than 200M shares that day.
With that trade fresh in the mind of traders…
They were looking for biotech penny stocks with catalysts.
Enter the ticker symbol NAOV.
Source: StocksToTrade Breaking News
The company announced positive results from its independent testing for UroShield, an ultrasound device designed to reduce the risk of catheter-associated urinary tract infection.
And like AXLA, this was a low float, microcap penny stock with positive news.
That might sound simplistic for some reading this.
But that’s how traders think sometimes.
They are looking for trends and themes. And this one fit.
The stock traded in the $2.80s in the pre-market…
But rarely will I take a trade in the pre-market.
My play is to wait for the open, and hope there are profit takers or short sellers to push the price down.
I’m focused on panic selling so I can dip buy.
And that’s exactly what happened.
I got in at around $2.14 on my first attempt…
Given how volatile the stock was…I was ready to punt my shares on any weakness.
And unfortunately, I was shaken out at $2.07.
Luckily my students played it much better…
One of them got in at $2.04 and out at $2.80.
Another got in at $2.06 and out at $2.86.
And one got in at $2.04 and out at $2.44.
I love that because it shows me that each had their trading plan.
I want all my students to think independently.
Source: StocksToTrade
The beautiful thing about NAOV was it held the VWAP for nearly the entire trading day, something my StocksToTrade Lead Trainer Tim Bohen watches closely.
And while it did panic sell-off later in the afternoon…more on that in a bit.
I was able to buy small dips before that.
For example, I traded this three times yesterday.
And a third time, $3.16 to $3.31.
The stock eventually did crack late in the afternoon.
But it wasn’t a technical move that brought it down.
The company announced it had entered into a definitive agreement for the purchase and sale of 2.9m shares of its common stock at a purchase price of $1.72.
A $5 million private placement– YIKES!
Of course, $1.72 is a lot cheaper than what it was trading at, and that ultimately brought the stock down.
Key Takeaways From The NAOV Trade
I get teased a lot for getting out of trades too early.
#1 Be Nimble
However, being nimble has helped me make over $7.4 million in trading profits.
And while I don’t hit tops…I’m rarely holding onto losers, hoping and praying.
So yeah, I get out of winners too early…but on the plus side, I am getting out of losers fast before they become devastating losses.
But what works for me might not work for you.
That’s why you need to create your trading plan and stick to it.
#2 Don’t Get Greedy
The other thing is don’t get greedy.
Typically, these companies are low on cash…
They use positive news to raise capital, just like NAOV did.
That’s why you rarely want to hold these high-flying stocks overnight.
And if you’re not by your computer monitoring your positions…have a stop.
I actively manage my trades, but if you have to step away, use a stop.
#3 You Don’t Have To Do It All Yourself
And lastly, it pays to know what’s happening in the market.
With my busy schedule, I rely on StocksToTrade Breaking News to help me find what’s moving and why.
Be Better Than Yesterday
Every day is an opportunity for you to learn and get better.
Did you nail the trade in NAOV yesterday?
If not, that’s okay.
Learn from it.
These biotech penny stocks are hot right now. I wouldn’t be surprised if traders try to find similar plays today and tomorrow.
That’s why it’s so critical you take your development seriously.
To help you out, my team and I are hosting daily live training workshops.
You don’t have to pay anything to attend.
All you have to do is sign up.
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