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Trading Recap

Breaking Down $BDRX and $SHOT

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Written by Timothy Sykes
Updated 11/27/2023 7 min read

After a long weekend, the market picked up right where it left off!

We saw stocks soaring 20%, 130%, and even over 200% shortly after the market opened…

And so many of my students were able to nail them!

Those are the opportunities traders like YOU need to be ready to take advantage of!

That’s why today, I’ll be breaking down two of my trades from Monday to help give you a better understanding of how to spot opportunities like this…

Plus what you should be thinking about to help you capitalize on them.

Let’s dive in!

Finding The Right Plays

Many traders ask me how they can find some of the best plays in today’s market.

As we all know, nothing’s ever an exact science when it comes to trading…

But, there are ways you can put yourself in a better position to help you find some of the best plays out there.  

Every trader, whether you’re in my challenge or not, needs to be prepared ahead of time…

And if you’re thinking about just buying a stock that’s spiking and don’t have a clue on what strategy to use…

You could potentially be in for a rude awakening.

I’m always reminding traders that they need to scan the market for some of the biggest percent gainers out there.

When I notice a stock spiking, I start thinking about what my next steps should be, which usually consist of…

  • Looking to see if a stock has a history of spiking
  • Where are the support and resistance areas
  • Is there volume
  • Is there a news catalyst
  • Is it a short squeeze

These are just some of the things I start to think about, but there’s one thing I want all of you to be aware of when it comes to trading penny stocks.

These aren’t great companies, in fact, they’re pure trash…

But that doesn’t mean they can’t offer you amazing opportunities to be profitable.

As I was focusing on some of the biggest percent gainers from yesterday, there were two trades of mine that stuck out that I wanted to share with you today…

And those are Safety Shot, Inc. (NASDAQ: SHOT) and Biodexa Pharmaceuticals Plc (NASDAQ: BDRX)

Let me show you why that is.

Knowing Your Next Move

Finding a stock that’s spiking higher is only half the battle…

That’s why I’m going to dive into two of my trades from Monday to help give you a better understanding.

First, let’s take a look at BDRX.

On Monday morning, I got this alert from StocksToTrade Breaking News…

Source: StocksToTrade Breaking News Alert

Every time I get an alert from StocksToTrade Breaking News, I’m not looking to jump right in and trade it…

And unfortunately, most newbies make that mistake.

Even with a solid news catalyst, some of these penny stocks don’t get the momentum you’re hoping for…

That’s why it’s important to see what kind of news alert it is while focusing on the price action.

Here’s what the chart looked like yesterday at the time I’m writing this…

Source: StocksToTrade

You can see when BDRX started to gain momentum shortly after the breaking news alert, but I wasn’t fully convinced I should trade it.

I wanted to see what BDRX has done in the past…

And when I looked at the last six months, I could see that BDRX had a history of spiking.

Source: StocksToTrade

Over the last several months, we’ve seen several of these beaten-down stocks soar higher…

And with BDRX having a low float, a surge in volume, a history of spiking, a solid news alert, and it’s been beaten down over the last several months…

I was hoping this stock could trap short sellers, potentially sending it Supernova. 

After carefully reviewing everything, I decided to buy BDRX at $4.73 and sold it at $5.38 for a $975 profit.  (Risked $7.095). 

Source: StocksToTrade

Next, let’s take a look at SHOT…

Source: StocksToTrade

SHOT has been on my radar for the last few weeks, ever since it started to squeeze higher…

And the truth is, you never know how long these big percent gainers can run for…

But the longer they run, the better!

That’s why I continue to remind my students time and time again they need to understand my 7-Step PennyStock Framework!

Last week, SHOT offered some amazing dip-buying opportunities…

And when I saw SHOT drop off of its early morning highs yesterday, I knew there was a good chance for this stock to bounce given where we are in the framework.

At that point, I decided to dip-buy it at $3.85 and sold SHOT at $3.99 for a quick $385 profit.  (Risked $10,587.50)

Source: StocksToTrade

More Breaking News

When I see these multiday runners like SHOT, I get excited as it can offer multiple dip-buying opportunities early in the morning for traders to make a quick profit from.

Just Remember

I was very pleased with my trades yesterday, and as some traders think I’m crazy for selling my positions too early…

It’s a mindset that has helped lock in over $7.5 million over the years.  

Every day you need to know how to prepare yourself and understand how this market truly works.

As we wrap up our lesson for today, I want to leave you with some videos that can help expand your knowledge based on the topics I talked about…

(VIDEO): How To Profit From Short Squeezes

(VIDEO): Big Percent Gainers – it’s an old one, but a good one.

(VIDEO): Dip Buying Strategy 

Most importantly, don’t forget to sign up for our FREE Trading Sessions to help you better learn and understand what we’re currently seeing in this market.

Click here to reserve your seat today! 

I’ll see you in chat.

-Tim

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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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”