The coronavirus pandemic is spreading exponentially…
Not only is it rocking world markets, but it’s now an existential threat to our way of life.
In this edition of the update, I’ll give you important news to share with friends and family. And I’ll show how I’m still trading while I stay in one place. Indoors. Away from other people.
If you’re not yet trading, now is the time to study. Prepare yourself for the future. Now, please pay attention…
Table of Contents
- 1 URGENT: Coronavirus Update and What You Can Do
- 2 My Strategy During the Coronavirus Lockdown
- 3 Trading Lesson of the Week
- 4 Questions From Students
- 4.1 “The coronavirus is creating plays in new sectors. What should we look for besides food delivery and home exercise equipment stocks?”
- 4.2 “With all the misinformation and conspiracy theories flying around, it’s confusing. Has it changed the way you do research?”
- 4.3 3 Important Tips for Trading This Market
- 4.4 Use StocksToTrade
- 5 Millionaire Mentor Market Wrap
Our medical system is hugely underprepared for this pandemic. And people are behaving irresponsibly. Please watch this entire video for a better understanding of where we are and what you can do.
View this post on Instagram
People don’t know about the potentially devastating consequences of this coronavirus pandemic so I made this very long and detailed video explaining the biggest risk as we must work together to prevent health care workers and hospitals from becoming overwhelmed like they are in Italy right now…hate me all you want, call me a fear mongerer, please just watch this video and also share it and tag anyone who needs to see this and let’s get the word out before it’s too late in a few days/weeks #coronavirus #staysafe #overprotectivejew
The stats I mention in the video are crazy. Please do your part and STAY AT HOME. If we don’t all do the right thing NOW, our hospitals will get overwhelmed. The potential knock-on effect is disastrous.
Please share this post and/or the Instagram post with friends, family, and colleagues.
My strategy and life hasn’t changed that much. Normally I’m traveling — but I trade all the time. So while I’m stuck in one place for now, I’m busier than ever.
Tonix Pharmaceuticals Holdings Corp. (NASDAQ: TNXP)
Tonix re-released news of a possible vaccine based on a modified horsepox vaccine. The news was first released at the end of February. The stock finished up 68% on Friday, March 20.
Galaxy Next Generation, Inc. (OTCQB: GAXY)
Galaxy operates cloud-based remote learning platforms. The company is “now providing remote virtual learning to students while the schools are closed due to […] the coronavirus outbreak.” It was one of Friday’s biggest plays and closed up 275%.
GenMark Diagnostics Inc. (NASDAQ: GNMK)
GenMark spiked after hours on March 19 after receiving FDA Emergency Use Authorization for its ePlex SARS-CoV-2 test. It trended terribly all day but still finished up 20%.
And there are more…
No Borders Inc. (OTCPK: NBDR)
No Borders spiked last week on news of an at-home coronavirus test kit. It spiked again Friday. Its subsidiary, MediDent Supplies, is shipping medical equipment to the U.S. The stock finished the day up 48%.
Trxade Group Inc. (NASDAQ: MEDS)
MEDS was up 104% in after-hours trading on Friday. Today, in pre-market trading, the stock hit a new 52-week high at $13.25 per share. More on MEDS later in this post.
Other stocks on the move last week due to coronavirus related news…
Bellerophon Therapeutics Inc. (NASDAQ: BLPH)
BLPH was one of Friday’s biggest winners. It spiked from the low $3s to $26 in premarket trading Friday. The catalyst was news the FDA approved emergency access to INOpulse® for treatment of SARS-CoV-2. The stock traded choppy and dropped but still finished up 386% on the day.
By the way, you can play these stocks both long and short. Check out this comment from the Trading Challenge chat room this morning*…
9:47 AM Chriz787GWIFOM: “just made $10,587 on $BLPH short from 14.40sh to 12.40sh god is good, biggest profit since joining the challenge. only trade of the month. patience pays off. waiting for the right set up.”
9:54 AM Chriz787GWIFOM → timothysykes: “thanks brother, framework key base for everything.”
If you’re ready to learn how to trade using the same strategies as my and my top students, apply for my Trading Challenge today.
Hepion Pharmaceutical, Inc. (NASDAQ: HEPA) finished Friday up 38%. Beyond Air, Inc (NASDAQ: XAIR) finished up 48%. The stock was up another 18% in the first hour of trading today.) Finally, Frontier Communications Corporation (NASDAQ: FTR) finished up 76% and then tanked after hours.
For more hot coronavirus related stock picks, subscribe to my no-cost watchlist. (My lawyer says I can’t call it free because you have to subscribe. Let’s call it my service to you — it won’t cost you anything but you do need to subscribe.)
More on what to look for during the coronavirus pandemic in the Q&A section below.
Trading Lesson of the Week
This one is simple: If you’re prepared, you have the potential to crush it. I’m still awed by how many students reported passing $100K or $200K in profits. One student even reported passing $500K in profits.
Check out these student milestones from last week…
- Profit.ly user Griff passed $500K…
- Also on Profit.ly: Wobs passed $200K…
- My student Dan Irish passed $101K…
- And Profit.ly user Infamous_Walrus passed $100K…
Those are a few highlights from the past week.
Last week I made $10,202 — even trading small. And there were so many plays I was overtrading a little. But I managed to keep my losses small by cutting losses quickly. When I found myself overtrading, I re-established discipline. Fast.
[**Please note these results are not typical. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]
It’s an amazing time right now. I’m still getting a ton of questions from students. I can’t answer them all but please get in my chat room and ask there at the appropriate times. If you’re a Trading Challenge student, bring your questions to the live webinars.
Here are two coronavirus-based…
Questions From Students
One example is MEDS, which I mentioned above. The company announced a membership service for its integrated drug distribution platform. The company’s platform connects patients with consultants through teleconferencing and home visits.
So this kind of service is gonna be necessary. I guess you’ll still be able to go to pharmacies when everything else closes, but you shouldn’t if possible.
You shouldn’t go to hospitals or pharmacies unless you have no other choice. Why? Because that’s where the sick people are. Getting stuff delivered to your home is pretty useful.
MEDS had a really tough go until now. It’s a perfect example of the kind of company you could look for during this crisis.
Other types of businesses include food delivery and home exercise equipment. Also, any company working on potential vaccines, test kits, or potential test kits.
Read this post — The Pandemic Effect: Coronavirus Stocks and Sectors — for more information.
In summary, look for these kinds of companies:
- Mask makers
- Vaccine developers
- Food delivery stocks
- Most other delivery-related stocks
- Remote education stocks
Anything hot due to the coronavirus being global is in play. Be ready, as the potential gains can be insane.
If you’re brand new to penny stocks, read Penny Stock Trading For Beginners. (It’s fully updated for 2020.)
Then, get a copy of “The Complete Penny Stock Course” and read it. There are massive opportunities in this market, but you have to prepare first.
“With all the misinformation and conspiracy theories flying around, it’s confusing. Has it changed the way you do research?”
There will always be conspiracy theories. And there will always be a lot of different strategies. Here’s what I do…
Focus on whatever works.
It’s not rocket science. I’ve been trading the same patterns for years. Of course, you have to adapt to the market and understand the nuances. But I still look for big percent gainers, look for a news catalyst, and watch price action. I still focus on big volume and volatility.
Right now, I’m seeing a lot of these stocks spike multiple times.
MEDS is a good example. I took my eye off it on Friday because there were just too many other plays. It wasn’t closing very well. Then, in after-hours trading it was trading in the $9s. Like I said, in premarket trading this morning it went to the $13s.
Another stock I mentioned above is GAXY. When MEDS spiked again I was focused on GAXY. Again, it’s in the at-home education space. The stock was up — I was buying in anticipation of the breakout over the morning spike highs.
This was a classic first green day big percent gainer. At the time I wasn’t sure if I’d be holding overnight. I decided to take profits as it met my goals with a possible rebuy on any big dip.
Check out the GAXY intraday chart from March 20:
I wanted it to come down for the rebuy, but as you can see from the chart, it kept going. So I decided to buy again with the intention of holding over the weekend for a morning gap up. It was madness. It hit all my goals even though the Dow was down roughly 900 points.
Rather than risk it, I sold into strength.
Based on these two trades, here are…
3 Important Tips for Trading This Market
- Recognize that these stocks can really move fast. Go with it — but also be careful. For me, I trade small to reduce my risk.
- Learn to take profits into strength.
- Don’t fall in love with any company. (See the example below.)
GNMK is another stock I mentioned from Friday. It had an amazing start — it gapped up from $4 to $8. But despite good news it trended terribly all day.
Take a look at the GNMK chart from March 20:
As you can see from the chart, GNMK price action was terrible. So focus on price action, too. A lot of the good news might already be priced in. Sometimes good news is actually bad news if you look at more details.
On March 19 I made a speculative buy on XspresSpa (NASDAQ: XSPA). The company announced it would be doing coronavirus testing at 46 airport locations. Turns out it had only reached out to the CDC to offer the locations for testing.
XspresSpa usually runs spa services. But nobody really cares about getting a massage at the airport right now because they’re afraid of germs.
It sounded like good news. The stock spiked from 17 cents up to 30 cents but…
… the company snuck in an offering.
So its announcement was like “we need to do coronavirus testing.” (Because nobody cares about massages.) But the hidden message was…
… the company needs the testing on its premises. Otherwise, it could go bankrupt.
So the good news was just a smokescreen. You gotta be careful with penny stocks. Expect the worst out of all these companies and you’ll never be disappointed.
Everyone should be using StocksToTrade to find the big percent gainers. Especially for lower-priced stocks. That’s how I — and many students in my chat rooms — find stocks like GAXY and NBDR quicker than other traders.
Millionaire Mentor Market Wrap
We all need to do the right thing to help end this pandemic. Please share the message from my video above.
It is possible to win this war against the virus, but we need to take the right steps now. We need to make changes now. Do what you can do and be safe.
As for the stock market, there are so many opportunities right now if you’re prepared. I can’t emphasize this enough.
The stock market is a battlefield — so if you’re not prepared, use this down time to study. Get in my chat room and watch the experienced traders killing it in this market.
[Note that these results aren’t typical. I’ve put in the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]
What are you doing while you stay at home during the coronavirus pandemic? Comment below, let’s keep this conversation going so we can be part of the solution.