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Watch These Biotech Stocks Right Now!

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/26/2024 5 min read
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It’s Tim Sykes here.

We’ve already seen at least two MASSIVE spikes this week from biotech stocks.

And there were profit opportunities from both runners …

Here’s my blog post from November 19 that detailed the spike on HCW Biologics Inc. (NASDAQ: HCWB) earlier this week.

The stock ran 760%* after it announced a new licensing agreement with WY Biotech for a preclinical molecule.

As a part of the deal, HCWB received $7 million in upfront payments plus additional milestone payments and double-digit royalties.

This was a huge catalyst for HCWB.

Plus, it’s in the biotech sector (which is red hot right now) and has a decently low float: 18 million shares.

Stocks with a low float are more volatile because they have a low supply of shares. When demand increases, the price spikes higher.

After seeing HCWB spike 760%* on Monday … A low-float biotech with news …

It’s no surprise that Forte Biosciences Inc. (NASDAQ: FBRX) spiked 210%* on Wednesday …

The Next Biotech Spike

The factors are the same!

Just like HCWB, FBRX is a …

  • Low float
  • Biotech stock
  • That announced bullish news on Wednesday, November 20.

StocksToTrade shows that the float is only 880k shares!

Yesterday morning the company revealed an oversubscribed $53 million private placement from healthcare investors.

In case you were wondering …

We can trade these volatile spikes.

See my post on X below:

I took three trades on this spike.

You can see my trade notes below:

Source: Profit.ly

The first thing that you need to do …

Watch for the next low-float biotech that’s spiking with news.

It could be today. It could be tomorrow. It could be next week.

But I assure you … There is another mega spike coming!

Once we find the next spiker, we still have to trade it …

How To Trade These Spikes

The most volatile stocks in the market can follow popular trading patterns …

Because people are predictable during times of high stress. Like when they have cash in a stock that’s spiking +100%.

For a perfect example of this, let’s look at FBRX right after the market opened on November 20 …

Every candle represents one trading minute:

FBRX chart intraday, 1-minute candles Source: StocksToTrade

Now, every spike will look a little different.

Don’t expect the next biotech stock to bounce off of $9 like this. But the overall patterns repeat in the market.

There are multiple patterns that my millionaire students and I use to trade. They all occur within a larger framework that you can study HERE.

It takes some time before my newest students are able to trade with these patterns self sufficiently …

Like I said, every spike is a little different. Traders need enough experience to recognize the patterns in real time.

Luckily, you don’t have to trade on your own!

The patterns are always the same, so … How long do you think it would take an AI to learn this process??

The answer is: Only a few months!

I prompted an AI with my profitable trade setups over-and-over again. Until finally, it started calling setups all on its own!

Take a look at one of the trade alerts it sent this week.

My students can find the hottest stock in the market, like FBRX, and prompt the AI with the ticker.

Then, it spits out a trade plan as if they asked me directly!

FBRX closed strong on Wednesday …

>> Type it into the AI for a trade plan TODAY <<

More Breaking News

And I have one more ESSENTIAL TIP to help you trade the next biotech spike:

Get There Early

As you can see from the biotech spikes earlier this week (HCWB and FBRX), the momentum doesn’t last forever.

Both stocks announced news during premarket, and they reached a peak around midday.

Take a look below, every candle represents one trading minute:

HCWB:

HCWB chart intraday, 1-minute candles Source: StocksToTrade

FBRX:

FBRX chart intraday, 1-minute candles Source: StocksToTrade

There’s always the opportunity for follow-up bounces intraday.

But nothing beats the morning volatility …

Get there early for the best opportunity!

Cheers.

 

*Past performance does not indicate future results

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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”