Too many new traders don’t know the most important rule about trading sketchy biotech stocks. There can be great trading opportunities with these stocks, but only if you know the RULES. What’s the essential lesson for biotech stocks? Tune in as Tim Bohen breaks it down.
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Recently, in a SteadyTrade Team webinar, a student asked if there was potential to hold Virpax Pharmaceuticals Inc. (NASDAQ: VRPX) overnight…
The short answer: NO.
The slightly longer answer: NEVER.
Why? Bohen covers all the deets in the video — so don’t miss it! Here’s a quick preview…
Biotechs typically burn millions of dollars trying to develop a breakthrough drug. With a negative cash flow, it’s difficult to get a loan.
So they go to the public markets — where there’s an endless supply of bag holders who believe the ‘dream.’
Tune in to learn what these companies do when they hit the public markets.
Now these stocks can have momentum, crazy volume, maybe even a press release … But that’s exactly what makes them great for day trading. ✨
Any trader who gets burned by these stocks could end up feeling like the stock market’s all just a scam. But it’s not at all a scam — if you know how to play by the rules!
Tune in and learn this KEY lesson now, particularly for day trading biotechs. Bohen helps you understand the importance of quick entries and exits, key levels, patterns, and more…
And tune in to learn what you should never do when trading biotechs.
#StockMarket #Trading #Biotechs
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
🔴 Ready to learn more? Check out the SteadyTrade Team: https://stockstotrade.info/3xGDhwG
🔴 Try StocksToTrade for $7: https://stockstotrade.info/3xEFhWr
🚀 Check out Small Cap Rockets: https://stockstotrade.com/small-cap-rockets/
📲 Download the STT app for iOS: https://apps.apple.com/us/app/stockstotrade-mobile/id1403963724
📲 Download the STT app for Android: https://play.google.com/store/apps/details?id=com.stockstotrade
🔴 Subscribe for more free Stock Trading tips: YouTube.com/StocksToTrade
👉Share this video with a fellow Trader: https://youtu.be/M2lQr9S9Nb0
✅ Links we mention and recommend:
🔴Try StocksToTrade for $7: https://stockstotrade.info/3xEFhWr
🔴Get our FREE weekly watchlist here: https://stockstotrade.info/2VCzgN3
🔴Traders Blueprint Free Guide: https://stockstotrade.info/37wtSgv
🔴Check out the SteadyTrade Podcast: https://steadytrade.com
🔴FREE StocksToTrade Market Grind: https://lp.stockstotrade.com/market-grind/
✅ Recommended playlists:
🔴SteadyTrade Podcast: http://bit.ly/2SXbrv7
🔴Stock Trading 101: A Day Trader's Guide: http://bit.ly/2sqs1ZZ
🔴Advanced Stock Trading Tips: http://bit.ly/3a32pTM
🔴Trader Spotlight with Tim Bohen: http://bit.ly/36TTzG3
🔴StocksToTrade Software Tips and Tricks: http://bit.ly/375GSry
🔴Weekly Trading Recap Videos: http://bit.ly/3a32uXA
🔴Charts and Patterns: http://bit.ly/2uj2KBO
✅ Follow StocksToTrade on social media:
Instagram: https://www.instagram.com/stockstotrade/
Facebook: https://www.facebook.com/StocksToTrade/
Twitter: https://twitter.com/StocksToTrade
Recently, in a SteadyTrade Team webinar, a student asked if there was potential to hold Virpax Pharmaceuticals Inc. (NASDAQ: VRPX) overnight…
The short answer: NO.
The slightly longer answer: NEVER.
Why? Bohen covers all the deets in the video — so don’t miss it! Here’s a quick preview…
Biotechs typically burn millions of dollars trying to develop a breakthrough drug. With a negative cash flow, it’s difficult to get a loan.
So they go to the public markets — where there’s an endless supply of bag holders who believe the ‘dream.’
Tune in to learn what these companies do when they hit the public markets.
Now these stocks can have momentum, crazy volume, maybe even a press release … But that’s exactly what makes them great for day trading. ✨
Any trader who gets burned by these stocks could end up feeling like the stock market’s all just a scam. But it’s not at all a scam — if you know how to play by the rules!
Tune in and learn this KEY lesson now, particularly for day trading biotechs. Bohen helps you understand the importance of quick entries and exits, key levels, patterns, and more…
And tune in to learn what you should never do when trading biotechs.
#StockMarket #Trading #Biotechs
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
Today, we're going to be talking about the number one most shocking thing to me when it comes to trading biotechs, hey everyone, lee training, with stats to trade tim bowen here before we get started, be sure to like share, subscribe and share with your friends, which would Also be sharing, like i told you to share three words ago and ring the bell to be notified as soon as we drop a new video all right. So today i'm going to talk about something that um is kind of a repeat from a steady trade team. Webinar from yesterday so um, if you're familiar with the steady trade team, if you're not click the link below check it out, i do a webinar in the morning and in the afternoon mornings we talk more like day trading. Now these aren't concrete, but you know, mornings were most mostly focused on those big morning movers for those quick day trades.
Then in the afternoon we kind of recap the day to see what worked, what didn't work, but then we also focus on overnight trades. Those swing trades or those gappers, as we call them because most people that are learning trading, i mean listen, you're, probably under the pdt, the pattern day trader, rule um. If you're, if you've got a margin, account and you've got less than 25 000 you're under the pdt, maybe you got a cash account which is awesome and actually check out the archive. We've got a bunch of videos talking about the pros and cons of both, but most people they're looking to day trade have a margin account, so they can go long and they can go short, so you're bound by the pdt.
And that means you all got those three round trips in a rolling five day period, which means you love the the gapper type stocks you're. Looking for those stocks that trade or close strong and then you can sell the gap the next day and you don't burn a day trade as we say that being said yesterday afternoon had a new member and they were asking, you know hey what do you think About vrpx as a potential overnight and listen - it was a great afternoon hold so we're looking at this area on the chart ground up higher all day was closing at or around the high. So you know we're doing this. Webinar 3.
45 p.m. The high of the day was eight, the stock's currently trading at it 750, which is basically a multi-month breakout, even almost hit a new 52-week high. So what i liked about the new member, they were looking at a stock that was in play, as we say, had some news yesterday, traded 50 million shares good intraday chart closing near the high of the day, but they asked hey. What do you think about? This? Is an overnight i'm like? No.
What are you talking about and they're like? Well, what do you mean? It checks all these boxes that we look for and i'm like it's a money losing bio tag, and this goes back to the headline of this video. One of the things about being around being an old guy with the gray hair and the bald spot 15 years later. You kind of forget that again, newer traders don't know these rules when it comes to money, losing bio tax. And the point is you never? Ever ever overnight, money losing biotechs, because - and let me show you how we know that i mean one of the great things about stocks to trade. Is we can go to our key statistics? You can see that they have. You know basically terrible financials. You know zero revenue, zero revenue, which is not uncommon for biotechs they're, bleeding cash everywhere losing money constantly, so those stocks are never overnight. Now listen vrpx did squeeze in after hours, but if you held this overnight, you're getting freaking destroyed right now down 20 on no news.
This is just what money losing biotechs do. These are day trades only. These are quick in and outs they're. Never now i hate to use, never you know in trading avoid using never and always you know it's, but i mean listen 999 out of a thousand times these companies never accomplish anything, they constantly fail and they gap down and they back hold people.
And fortunately you know, i saved several people that were thinking about this as a as an overnight, because i'm like no no understand the reason biotechs are publicly traded is to raise cash. Okay, the and this isn't a bash. Ultimately, i mean it probably sounds like oh tim you're, one of these short seller commercials that loves to bash everything. No, that's not my point.
The business model of biotech is, they are a home run business model, you burn through millions and millions and millions of dollars to get that breakthrough drug that makes you billions, but for years and years and years you'll lose cash and lose money like crazy, because you Have to pay the bills, you have to pay taxes, you know you have to pay the rent. You have to pay, you know payroll, you know you have to mow the law. Okay, it takes money to do r d and keep a business operating, and if they were good companies, if they were quality companies, they could just call up chase or jp morgan or or wells fargo or citibank, and get a loan well. They can't because they're, speculative and they're bleeding cash, i mean listen if you, if you're losing money like crazy and you go to the bank you're like hey, i want to buy a 300 000 house they're gon na, laugh you out of there well, unless it was 2005 in 2005, they'd be like you hey.
You want to buy three houses, but anyway they, you know if you're lu, if you, if your cash flow, is negative, you can't get a loan. So what do biotechs? Do they go to the public markets because they know hope springs, eternal, there's an endless supply of bag holders and people that will believe the dream? Then you issue press releases like vprdx. Did you run the stock up and you sell more stock and you delute and you delute and you delute and because of the fact that hope springs eternal and people don't know this rule again? My point was back to that webinar yesterday, i'm just like uh people. Don't know this people believe in biotechs. You know that that's part of being around for so long. You just assume everyone knows this. So that being said, vprx hasn't even done a dilution. Today, it's down 20.
The probably i mean, listen, i'm recording on july 15. 2021. Look at your news on vrpx they're, probably going to do a dilution tomorrow or the next day or next week, and the stock will be down another 30 or 40 percent and will probably return all the way where it came from at four bucks and six months. Hey, maybe you're, watching this video six months later and the stock's running.
Well, there's probably a press release, it's probably got momentum, it's probably got crazy volume and it was probably a great day trade, but then the true believers that don't know this rule the bag holders will hold overnight it'll gap down 20 percent they'll dilute it'll gap down To another 20 and they're, the ones that say day trading doesn't work the stock market's a scam, etc no stock market's, not a scam. If you know how to play the rules, you know i joked in that webinar, i'm like listen. If you don't have any idea, the rules of baseball you'll go out there and you'll think baseball's a scam. You know i'm supposed to hit a ball with a stick and i run to this base and if i catch the ball, it means one thing: if i drop the ball, it means another you'd be like it's all a scam.
But if you understand the rules of day trading, particularly day trading biotechs, you understand quick in and outs key levels, dip and rips v-wap holds weak, open red de greens and you never ever ever ever. There's one golden rule. If you know number one rule in trading is always you know, cut loss is quick, but man a close second. Is you never overnight or swing trade biotechs all right, everyone, if you're learning this stuff and listen? If you didn't know this one, i don't blame you.
I just it just shocked me, you know, as an old guy that people didn't know this check out the steady trade team. We get into everything all of these details that can maximize your success and, if i can save you, like, i saved a handful of steady trade team members from overnight and some piece of crap money losing biotech that gaps down 20 for every day for three days And goes all the way back to four, then that is getting you closer to that path of consistently profitable trading check out the steady trade team. I look forward to working with you soon.
I actually didn’t know that. Thank you for the quick fact. I will never over night hold a bio tech. I will only day trade a bio tech stock!
Thanks for reminder, it's a great lesson. In February I bought only 1 share of $VXRT and didn't know about the rule. Held overnight and from $21 it went to 8$ and I am just happy that I bought only one share (since I have small amount). And I couldn't cut my losses short XD Soo really valuable lesson!!
Complete noob here had no idea about this rule wish I knew it a month ago would have saved me from my biggest loss to date on NAOV
Not under PDT… trade a cash account as I have no interest shorting at this time. Sure makes my life easier not worrying about that!
im from russia, this man is best)
I did not know the biotech sector had such a dark side. Are there other sectors this rule can be applied to?
fwh
Risk Capital and only risk capital should be invested (risked) in high debt companies like biotech. Unless there is a compelling reason to own one of these stocks, stay away. The one exception to this rule is a company that has sufficient cash flow to pay its debt easily. This rule is more important to an investor as opposed to a trader. Stock Market Tradecraft is a book (google it) that explains in great detail how to manage risk.
Where do I see that a company has done a dilution
Thank you Tim for this video. Why is the field of stars on your US flag on the top right and not on the top left?
Thank You Tim
Thank you! I almost traded one overnight today and had second thoughts, then watched this video got confirmation. Tim you're the best!
Thanks tim great lesson to learn here actually, could be why the swings I been tracking are so erratic
Thank you for this information! And thank you for the extra video edits to point out where to see things as you talked about it! As someone who loves editing video, I am always wishing more people did what you did here. It helps a ton in my opinion…
Didn’t know this one. Solid again. Thank you, sir.
I didn't know this, but this makes ALOT of sense. Thank you.
Thank you Tim. You are awesome bro.
One may consider LMNL, $100 M, 30M o/s, breakout soon? Grass roots biotech overdue?
Awesome video lessons Tim. Liked it a lot.
Brilliant.
You just talk and talk why don’t you show people your trades actually? What kind of education stuff you are talking about when we can’t see any of your chart? I may be wrong but I didn’t see any..
BOOM! 💥
Thank you Tim