All right, one of the darlings of the stock market are biotech stocks. You know making these amazing drugs, these amazing treatments or mechanical devices or surgery techniques, or all these amazing, life-changing things.. Today, I'm going to tell you why I love love, love, biotechs, but one of the biggest mistakes, so many people, make. Hi, everyone welcome back., Be sure to like share, subscribe and ring that bell.

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All right. I am lead trainer with stocks and trade Tim Bohen.. Today, we're going to be talking about biotechs, which is something we go over every single morning in the SteadyTrade team. Check out the SteadyTrade team., You can click that link below..

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Let's talk about biotechs., Okay, so one of GMVD is an example. I'm gon na to talk about today.. This was kind of the darling of the last couple of weeks.. I mean look at this.

How glorious is this? Like 13 green days in a row which here we are pulling back, probably doesn't know they read green., But the point is one of the biggest mistakes I see so many people make. Is you know it's it's the Kool-Aid, it's believing that GMVD is gon na, be the next Okay. I mean listen MRNA. I had a did a research report in early 2020 on that thing, when it was like eight bucks and went to like 400 okay..

But the point is: I'm not here to like brag about that call not like rocket science to figure out that the first MRNA treatment for a COVID vaccine would do well in the market. Not bragging about that call.. But the point. The reason I bring up MRNA is they are extremely unique events.

And the reason I bring that up is yeah. It's a successful biotech they're going to crush it they're, going to make billions, probably trillions of dollars, but think about what happened.. They were the first to come up with something the MRNA vaccine., Something that had never happened in history. And then on top of that they had the time..

I mean it's like you're you're, thinking about how many I mean. Hopefully, you know how many global pandemics are there. Pick them up like the Spanish flu in the early 19 hundreds.. Here we are in the early 20 odds..

It's you know it's a hundred years apart.. Hopefully you know, we continue that type of track record word. One. Seven century., But the point is right place right time.

You get a Moderna, I mean think about it, its a hundred years okay.. So what I'm getting at is trade the momentum, trade, the height, look for the keywords that I'm about to talk. About.. Look for this! Next technique that I was fell guilty about talking about and look for the price HAG.

I mean look, look it. I mean the beauty of GMVD.. You could've been eight days late, but when it broke the 52 week highs, you know back here. Look at that.

4. 4 50 break basically doubles in two days., So you can see that acceleration., So the great play would be. You know right there, two days ago, when it broke the 52 week high highest value candle in a year, okay. Value price action, confirmation on a whole dollar.

Half dollar and a 52 week break. Lining up all these multiple timeframes., It's all there okay., But what you can't do - and this is what - and this is the biggest point okay. You can't believe it okay. Listen.

I saw people saying GMVD is going to 10, which is at least maybe 10., But you start seeing some say five, you know, There's still people saying MRNA is to going to a 1000 pulling back hard right now.. So if you understand trading short-term trading in know that 99.9 9 9 9, 9, 9, 9 9 9, 9 % of biotechs fail. Okay, where's your eyes.. So this is the point: are you trading? Are you day trading swing trading or you know? Are you just gambling closing your eyes and hoping to go into a coma for a week or a year and a half and you wake up in your biotechs at a hundred bucks I mean great trading traits Self-induced coma, which okay you're a bag holder, most people Most people that these buy biotechs and believe them probably wish they could induce a coma, but we'll save that for another day..

Maybe I should start a biotech. Bowen's biotechs are our drug or our device allows bag holders to self-induce a multi year long coma? So they can wake up, and maybe maybe two years later the biotech is back to breaking.. That is genius Venture capital, any venture capital's out VCs out there hit me up. Anyway.

The point is you cant believe these things you can't stay in them, cause it ends badly and it will be used until they bounced. Okay, Now we're done.. Hopefully you learn the lecture.. Where do we look right? Jim just spent five minutes lecturing.

I got okay.. So what do we look for - And this is where I always feel guilty - you'll hear me mention this scary, stuff Okay.. When you talk about the biggest moves and when I say scary stuff, the best example - and you probably heard me say this on the podcast or elsewhere - you know stuff, like pediatric units and reason I feel bad. Is I'm not a Google? Okay? Not I'm not like.

Oh I'm gon na to make some money. Or help pediatric cancer.. That's not the point.. The point is we're trying and we're recognizing patterns, momentum, things that are people.

And when you're talking pediatric cancer, Alzheimer's, Parkinson's, really any type of cancer people that people feel okay.. Maybe you maybe you have a family member or friend that had cancer.. Maybe you had it. Again.

I want. I want everyone. I want everyone to be healthy, wealthy and wise., But everyone has felt it. Everyone knows someone or or or a family, member or something..

So people that that fear that that that gut is what gets people to pile into stocks, because it's an emotional trigger. One of the biggest things we do in short-term trading is we trade, emotion, fear, green fear, green fear, green. Again, this is sometimes all the time.. The ticker GMVD, listen by the time you watch this video, it might be six months, later., Stock's, probably going to be back in a box, actually dropped me a calender.

The day you watch this What's GMVD., If you're watching this six months from now. I bet I'm going to have a lot of book to compensate right, But if, ultimately, if we recognize the trend, the mania, the moves - they repeat - and they repeat - and the scary stuff is what we wan na to look. For. Ridiculous volume is what we wan na to look.

For. GMVD has that. Key levels. Hold our half dollars points parts.

The previous days highs 52 week out break out from open month. Breakouts.. All of these trends alignments make multi-year breakouts.. You know in the post 2020 world..

I really focus on one year charts because we have so many new traders in the market, but maybe it's a five-year breakout 10 year breakout., But have a three to one risk reward.. Now the deals breaking that all down. Have realistic expectations and even if it's scary, even if it is the press release, reads, miraculously stick to your goal. Okay, So let's have a GMVD.

Let's say: let's jump back to a five day., Let's say yesterday you were trading that four 50 break at dawn; okay and then maybe your risk is 50 cents. This year. So you'd be buying that four 50 break, which was the trend alignment right here. Four 50 break boom boom, boom.

And then you're risking 50 cents, a share which would be a breakdown back down to this mold level from which is Wednesday back to Tuesday., So you're, risking 50 cents, a share.. You got a buck 50 goal. Three one risk reward bin splits all the way up to six 75.. You should have been out before that., And now you made a buck.

50 share risk of 50 cents. Recognizing all the things I've already mentioned. Three times go back, write them down., And now you know you don't care Again. You're watching a GMVD is at a buck 50.

Who knows? Maybe it got delisted. Maybe it's kicked down in the OTCs and it's thousands of a penny., Maybe they're bankrupt and they're, not even traded., You don't care okay. You're, not drinking the Kool-Aid. You're, not a true believer., So understand that trade.

All these key levels Look for and again I'm not a ghoul okay.. But when you read that headline, is it something visceral? Is it scary? Is it you know again brain games all these things., Then look the volume, the chart levels, three to one risk to reward Right: listen, you're! The bag holder holding these things. Keep getting trapped in biotechs check out the SteadyTrade team.. I will drive this home., We'll fix it.

Okay. I'll either I'll either I'll either fix it. I'll get you to quit believing in these things. I'll, get you to quit, having unrealistic, expectations.

And we'll probably part ways and be like Tim's, a jerk. All right.I a nice Guy All right. Check out the steady trade team ring that bell and we'll see you on the next one.