It’s been a tough market out there. Stocks had their worst one-week selloff since the global financial crisis, and market participants are taking it on the chin.
If you’ve been beaten down by the market, don’t fret… because I want to show you there are ways to make money in this environment. In order to put you in a position to succeed, I want to bring to your attention one of my best profit buckets — Fast 5 Trades.
So what’s Fast 5 trades?
It’s my answer to how to find winners in this market environment… like my 65% gain in JNUG calls on Monday.
This market environment is so different from what it was just a few months ago, and buying the dip hasn’t been working out for many market participants. Instead of randomly jumping into stocks just because they’re moving…
Today, I want to walk you through my latest Fast 5 Trades winner in JNUG, and prove to you that sometimes, all you need is just one trade idea a week.
On Monday, stocks got smoked, as the S&P 500 suffered one of its worst single-day drops in history. With the market down about 10%, I knew I had to be locked and loaded to find my best idea for the week. The goal is to get in on Monday and lock in double-digit (or better) returns before Friday.
As I scoured through hundreds of stocks, exchange-traded funds (ETFs), and exchange-traded notes (ETNs), I found one trade idea that made the most sense: Direxion Daily Junior Gold Mine (JNUG). Why?
Well, the Fed cut its benchmark interest rate to a range between 0% to 0.25%. In a low interest-rate environment, gold-related plays have a high-probability of going up. You see, this makes gold stocks more attractive because other safe havens (bonds) won’t yield as much.
In turn, one would expect the demand to pour into gold stocks.
The thing is… no stocks were safe amidst the bloodbath. JNUG got destroyed and lost more than 90% of its value in just a few weeks. Now, the one thing to note about JNUG is the fact it’s a 3X leveraged ETN. In other words, it’s a risky play.
The ETN aims to track 300% of the performance of the MVIS Global Junior Gold Miners Index, which provides exposure to micro- and small-cap gold and silver mining companies.
Well, if you think about it… when the market is selling off and a low interest rate in place, this was a high-probability setup in my eyes, although risky. Rather than buying JNUG outright, I wanted to properly risk manage the trade.
So what did I decide to do?
I purchased the calls. That way, I maximize my upside potential, while reducing my downside risk (it’s known right off the bat, and the most I could lose was the premium paid).
Once I found the play and had a thesis… I let Fast 5 clients know about my moves.
I purchased 50 JNUG March 20 $6 calls for $1.44. There were just 4 days left until the expiration date, and that specific trade was perfect for Fast 5 Trades.
Here’s what happened with the trade…
JNUG got a nice pop… and in under an hour, those calls EXPLODED!
I was able to lock in a 65% return on those calls, and my target was hit!
However, I wasn’t the only one who banked on this setup…
With Fast 5 Trades, you don’t have to worry about what the overall market is doing.
That’s the beauty of this trading strategy, all you have to do is focus on the one trade you’re in.
After it’s closed out, you can just go about your week. Let Fast 5 Trades be your edge in the market, and sign up here.
Stocks have been getting smoked… and it seems as if every day the market rallies, the following day stocks crash. It’s just down, down, up, down, up, down — just pure chaos at these levels.
I opened up a discussion with my readers, and since it’s been a tough time for many of you out there… I want to try my best to help as many people out as possible.
As I looked through all the responses with my team, I found one common question: how do I time trades to near perfection?
In this market environment, it’s so easy to get sliced up in these violent moves… but if you’re able to time your entries, it could be very lucrative.
If you’re a trader like myself, this is an exciting environment. The moves I’m witnessing are unprecedented, and there are plenty of opportunities to take advantage of.
The thing is, just because stocks are moving, it doesn’t mean I’m randomly throwing down bets. In this environment, it’s easy to get overwhelmed and trade without a plan. However, I believe that’s one of the quickest ways to get taken out of the market.
I’ve actually discovered simple techniques that have allowed me to time my trades to near perfection and lock in $335K in March so far! If you’ve been having trouble in this environment, remember cash could be a position… and you don’t have to always be trading stocks.
If you’ve been on the sidelines and want to test the waters — I want to show you how I’ve been able to find success in this market environment.
When it comes to fast-paced markets… timing is everything. It’s so easy to get caught up in the noise and buy stocks randomly — and get whipped by the market. However, I’ve found success in remaining patient and stalking for the right opportunities.
For the most part, I haven’t changed much with my trading style.
I’ve found that if you look for stocks with catalysts and develop a trading plan that includes simple buy, stop-loss, and target zones… it helps remove some of the emotions and time trades to near perfection.
That’s exactly what I’ve been doing in this environment — leading me to more than $300K in profits in 12 trading days.
In order to prove to you that doing something as simple as looking for catalysts and writing down your buy, stop-loss, and target zones… I want to walk you through two real-money trades that I took this week.
With the whole coronavirus pandemic, there are plenty of names I keep on my watchlist. Why? Well, it doesn’t seem like that catalyst is going away anytime soon.
Inovio Pharmaceuticals (INO) is one that remains on my list. On Monday, INO actually took a hit and I figured it could catch a bounce. Here’s the chart I was watching in INO.
On the hourly chart, INO took a big drop… but it found support right around $5. With the massive gap down, INO had to potential to run up to $6.80.
So what did I do?
I planned accordingly. I waited for INO to start popping before I bought shares. My target zone was in the mid $6 area or higher… and I would stop out if the stock broke below the support level (the blue horizontal line).
So you could’ve had a plan like this:
Catalyst: Coronavirus stocks got hit today, but they could bounce since there is still news coming out… and I believe they could bounce.
Buy Zone: $5.50 – $5.95
Stop-Loss Zone: $5.00
Target Zone: $6.50 – $7.25
Pretty simple right?
I was able to pick up 12K shares of INO at $5.90 at 11:11 AM on Monday…
And guess what happened?
Just about an hour later, I was able to take my profits off the table!
In this market environment, it’s not only about getting into the trade… it’s also about knowing when to get out. If you overstay your welcome, it’s very easy to give back all your profits… and turn a winner into a loser.
For the most part, when it comes to my trading strategy, I like to keep it simple. Just take a look at the daily chart in CHF Solutions (CHFS).
With this specific chart, CHFS had support at $0.30, and had the potential to break out above $0.50 (a key resistance level).
The thing is, the chart signaled the stock could bounce… but I needed to find a catalyst. Guess what?
CHFS announced it was holding a conference call about its product and how it was being used in Italy to help with the coronavirus. This was just the following day after I spotted the potential trade.
With this specific setup, all of the buy, stop-loss, and target zones were pretty clear. However, I knew I wanted to be out of the trade before March 17 at 11 AM EST.
Shortly after I got into the trade, CHFS actually got to my target. However, I didn’t take my profits off the table because I thought it could have gapped up the next day.
Of course, as you can see, I should’ve taken off when it was in my target zone. However, I’m not too mad because I was still able to lock in a profit.
If you’re struggling in this market environment, don’t beat yourself up. There are ways to find opportunities and time your trades to near perfection. For a limited time only, you can watch the rebroadcast of my State of The Market and learn how you could find success in this wacky market.
Penny stocks are high risk, and because the health care industry is one of the most volatile areas even for large companies, biotech penny stocks carry higher risk than most. Medical penny stocks are attractive because investors who do their research can experience significant, rapid growth when they invest in the right small biotech firm. On the flip side, these small companies can quickly lose their market shares to more established competitors, especially if they experience slow sales.
To mitigate risk, stick to firms that have an established track record in marketing and product development. When you put your money in medical penny stocks, keep a close watch for factors that may impact value, such as a surge of new competition or high-profile product failure. Review the company’s financials regularly to get an early glimpse of potential red flags.
Favor companies that have various products in different stages of development, which increases the chance that one of their Phase II programs will successfully come to market. Partnerships with larger firms can also boost the value of pharmaceutical penny stocks. Innovative treatments and drugs are also a good indicator that a small company will succeed long-term.
Investors who want to profit from biotech penny stocks have to be ready to play the long game. Brand-new drugs can take a full decade to go through clinical testing and FDA approval so they can land on the drugstore shelves. In addition, between 85% and 95% of new medications never make it to market because they fail either FDA approval or clinical testing. If you can wait out the volatility, however, you may be able to take advantage of significant unexpected gains.
These hot biotech penny stocks are a good place to start for investors who want to explore the potential rewards of this industry.
Based in San Diego, Adamis Pharmaceuticals is currently seeking FDA endorsement for an epinephrine syringe formulated in a prefilled version to treat hypersensitivity reactions. Because the company’s main competitor, Mylan, is currently under investigation for increasing the price of its similar product by more than 450% to $600 since 2004, this may be a good time for Adamis to claim a share of the market. In light of this news, the penny stock’s price jumped by 13%, resulting in a trade volume of 6.63 million shares.
In addition, Adamis received a recent U.S. patent for Taper DPI, a medical device designed to allow patients to inhale dry powder treatments. The product is also patented in Europe.
This small immuno-oncology biotech firm specializes in innovative drugs, such as an immunization adjuvant in development in collaboration with pharma giant GlaxoSmithKline. However, most of Agenus’s medications are in the preclinical stage, though the company has the benefit of major partners such as Incyte and Merck. Current products in the pipeline include antibodies under investigation to treat intestinal illness and shingles. The former drug, Mosquirix, would be the first medication of its kind to treat intestinal sickness and has been endorsed by both the World Health Organization and the European Medicines Agency.
This Chinese biotech firm specializes in products and treatments for infectious diseases, neurological diseases, and cardiovascular issues. Most of its assets are currently receivables, so keep in mind that they may not necessarily collect the full value of those receivables when deciding whether to invest in China Pharma Holdings. However, many investors were pleased by the stock’s sharp breakout early in 2018 and hope that as the firm releases more drugs, the stock price will skyrocket again. If you are able to wait out the volatility, you may be able to take advantage of significant returns.
Be aware of geopolitical factors that could affect the stock price of China Pharma. Familiarize yourself with the close control of the Chinese government over firms based in the country.
Although this firm currently has low cash reserves, it’s expanding into several new markets, including health products. For example, at the end of 2018 they released Ararato, an alternative aging treatment made from noni enzyme, a popular ingredient in traditional Chinese medicine.
This biotech firm specializes in new cancer treatment medications, including research and development in collaboration with other major pharma companies. Its first drug with Food and Drug Administration approval, Erivedge, is prescribed to treat basal cell carcinoma in Europe, the United States, and several other nations. Fimepinostat, another drug, has been fast-tracked for clinical trials by the FDA.
With this investment, be aware of changes in stock price based on the results of drug trials and the FDA approval process. Although profits have been minimal because many of this firm’s products are still in the R&D phase, several new products are expected to hit the market soon, making this one of the best pharmaceutical penny stocks to set your sights on this year. Curis currently has two drugs in the pre-clinical phase and two in the clinical phase, in addition to those mentioned above.
Although Curis has displayed high volatility that may scare off risk-adverse investors, you can also take advantage of support levels to create a strong position. If you’re not sure, continue tracking the progress of the drugs currently in development from this firm.
With a business sector cap of $240 million, Galena has one of the strongest showings among biotech penny stocks. Its innovative tumor immunization drug, NeuVax, is currently in phase 3 of clinical trials and is expected to gain a market share of at least $5 billion once it hits shelves. This company has proved its mettle as one of the biggest Russell 2000 gainers with an increase of 6.64% and nearly 2 million shares exchanged. The relative strength index (RSI) is 39.75, and the stock has an instability rating of 7.33% on a monthly basis.
With a $420 million market cap, Ignyta specializes in integrated diagnostic tests and treatments for oncology care. The firm gets attention for its streamlined basket model of clinical trials, which utilizes aggressive marketing and development, a large new product pipeline, and multiple points of data. Positive results on its recent products show significant promise for reducing the size of cancerous tumors. However, investors should be aware of the risk inherent in this company’s lack of liquidity.
With a multifaceted program to develop immuno-oncology drugs to fight malignant tumors, Immune Pharmaceuticals boasts some of the most robust talent in the industry, including transfers from the Pfizer Oncology Research Unit. With aggressive pipeline growth, the company has gained note for Ceplene, which is used in Europe to treat regression in adults who have a poor prognosis with acute myeloid leukemia. This drug is currently in Phase 3 testing.
This biopharm organization specializes in focal sensory system treatments and has demonstrated significant clinical advancement with its main compound, NSI-189, which is currently in a second phase of testing. Neuralstem gained attention in 2016 when it earned $9.1 million from a private securities arrangement. The same year, the company restructed and refocused its methodology in order to streamline costs.
Early information on another compound by this firm, NSI-566, was presented at the annual meeting of the American Neurological Association in fall 2015. Eva Feldman, MD, PhD, Director of the A. Alfred Taubman Medical Research Institute and Director of Research of the ALS Clinic at the University of Michigan Health, is leading the clinical trials for this promising drug. A third compound, MDD, is currently in the second phase of clinical trials with about 225 test subjects.
This hot pharmaceutical penny stock pick specializes in vaccines for individuals throughout the lifespan, including everyone from infants to the oldest seniors. Novavax is a smart choice for those concerned about investing in brand-new companies, since it was founded way back in 1987. Since then, the firm has introduced vaccines for prevention of various illnesses, including the Zika virus, the Ebola virus, and the seasonal flu.
Despite setbacks in the Novavax stock price in late 2017 and early 2018, this firm’s reputation is bolstered by the vaccines it currently has in development. For example, the company is currently working on a vaccine for respiratory syncytial virus (RSV), which is an often fatal illness affecting pediatric patients all over the world. Another product, the NanoFlu virus, is currently in the testing phase and shows promise, demonstrating that it is significantly more effective than the current flu vaccine and is well-tolerated by older adults.
As with all biotech penny stocks, keep an eye on clinical and FDA approval to get the full picture for this investment.
If you want to learn more about trading biotech penny stocks from the experts, sign up for a Raging Bull subscription today. You can access webinars, free e-books, and other invaluable resources that will help you increase your investing prowess.