How can wild virus volatility and a billionaire space stock make for killer trading opportunities?
It’s that time again … Welcome to the latest edition of Bohen’s Take…
This edition, I’ll tell you how I recently got to meet two of my idols…
You’ll also find out how I’m handling the wild market volatility. The coronavirus fallout is creating a ton of opportunities. Get a peek into what we’re playing in the StocksToTrade Pro community…
And we’ll get into an out-of-this-world billionaire play.
I’ll also tell you all about how you can develop better trading skills without spending a single penny. You have absolutely no excuse to not improve.
This one’s a jam-packed edition — let’s dive right in…
What’s the Haps
Well, we sure live at an interesting time….
I’m trying to calm everyone’s fears about the coronavirus outbreak. Seriously, take a breath and don’t panic.
If you’re feeling uneasy from the constant barrage of negative headlines, I’ll try to help you gain a positive perspective…
Before I do that, let me tell you about meeting two of my idols…
We recently had James Altucher as a guest on the SteadyTrade podcast.
Don’t know this guy? He’s had an amazing career. It spans tech entrepreneurship, trading, and a hedge fund. He got rich, went broke, and got rich again.
And he’s written some incredible books to share the lessons he’s learned along the way.
In fact, his book “Choose Yourself” was a huge inspiration to me when I sold my business in 2011. That’s when I decided to pursue my career as a full-time trader and educator.
I’m so much happier now. I really can say that James Altucher changed my life.
Having him on the podcast was amazing. My co-host Kim is also a huge fan. Check out the episode — you can hear how giddy we were. We had an absolute ball interviewing him.
Head over to SteadyTrade for that episode and more.
That’s the first idol I got to meet. Now for the other one…
[As an Amazon Associate, we earn from qualifying purchases.]
I also recently had the pleasure of meeting Grant Cardone. If you’re into self-development on YouTube or social media, you’ve probably heard of him.
Grant’s a super motivational guy. He runs a huge sales training business and owns a ton of real estate. His presence on social media is huge. He motivates millions of people each day. He’s a dedicated family man. But what really stands out to me is his mindset…
His mindset is like mine, but he seems to push way harder than I do. He’s all about working harder and smarter than everyone else. He works to be more focused and obsessed than others think is even possible. He seems to get amazing results from life because of it.
They say don’t meet your idols because they often disappoint. That definitely wasn’t the case meeting Grant.
The guy’s one of the most humble and respectful people I’ve ever met.
He’s richer than I am, in better shape, superfamous, and flies around in his own huge Gulfstream jet … But, he still takes time to shake hands, chat, ask questions, and be an all-round likable guy.
OK, enough of my fanboy moment, let’s talk about…
Trading Through the Coronavirus Scare
The media throws a constant barrage of negative headlines and fear at us.
First, you gotta understand that the media always love to overblow everything. They want those clicks. That’s how they get advertising dollars. So they stir up panic and get people to read the news constantly.
In the past few weeks, they’ve barraged everyone with gloom-and-doom stories on COVID-19. People are giving into fears — running out to stock up on food and essential items.
We’ve even seen the stock market sell-off, dropping a little over 10% in a week. That’s an aggressive drop. But when markets are up big, they often pull back big. When you’ve got a few years under your belt, these things aren’t that shocking.
Plus, it’s a solid lesson in…
Why Traders Love Volatility
For active traders, this sudden volatility can be a goldmine. Honestly, in the StocksToTrade Pro community, we’re finding great trades.
In a bit, I’ll tell you about some hot coronavirus plays for penny stock traders. (Check out my monthly watchlist here.) First, let me try to alleviate your worries about the spread of the new coronavirus…
Over the years, we’ve had other pandemic scares. They pop up, and people go a bit crazy. Then the scare dies down, and life goes on. What’s different this time is social media. We’re all more connected. It’s easier to feed the global panic.
My advice: keep your immune system strong. Eat well, exercise, get some sunlight, and wash your hands often. Don’t stress — this too shall pass.
Setups of the Month
February was quite the action-packed month. I can’t pick a single setup that I think deserves the crown … So I’ve got three for you.
First, let’s look at our billionaire play…
Virgin Galactic Holdings Inc. (NYSE: SPCE)
Need a stock to talk about at a dinner party? This one has everything…
First, it’s a space stock. The company is all about developing the space tourism industry. Its goal is to allow people to book flights into space just like flying between LA and NY.
Second, it’s got that billionaire aspect. There’s just something about a stock when there’s an eccentric billionaire at the helm. This firm has Richard Branson.
Third, it’s breakout play — you could probably call it a supernova pattern.
The stock was trading in the low $7s in December, then hit $19 in late January. It then proceeded to hit a high of $37 in February. Those are basic breakout setups … with a lot of meat on the bone for traders.
Then the stock came down to $24. But even if you missed the entire move up, there was still opportunity on the downside. Plus, what a cool trading story, right?
Co Diagnostics Inc. (NASDAQ: CODX)
Next, we have a blistering-hot virus stock. It’s been on my radar since January.
The company develops diagnostic equipment. It’s been making announcements regarding breakthroughs for diagnosing COVID-19.
When I first spotted this stock, it was trading around $2.60. There was chatter about the virus spreading, but at the time it was really limited to China.
That changed in late February when the market started to go crazy for anything coronavirus related. The stock quickly broke through the $3 level to hit $4.32 in a few days.
That’s a setup for over 30% in a few days. Normally we’d be happy with that…
But these are wild times — we saw the stock run even more. A week or so later, the ticker hit a high of over $21. That’s more than 500% higher than when it popped up on my radar.
Alpha ProTech Ltd (NYSE: APT)
Another coronavirus play is APT. This company produces disposable infection-control apparel, like masks and gloves.
You might have seen the news about how surgical masks are selling out around the world. APT serves that market. And the ticker’s been great for traders to play coronavirus-related excitement.
I also first saw this one in late January. I immediately recognized it as a big runner from the 2104 Ebola scare. The stock was trading in the $5s. I thought it’d be a good trade if it broke out above $6.50…
On February 24, it did just that. It had an amazing four-day run and hit a high of over $41. That’s another 500%+ in just a few days, with pretty simple, easy-to-trade price action.
And there were shorting opportunities on the downside as the stock eventually declined…
See why I love low-priced stocks? You just don’t find those huge moves in bigger stocks…
StocksToTrade Feature of the Month
People love to look for excuses for why they can’t improve as a trader. There’s not enough time, they don’t know how, or they can’t afford a coach…
No more excuses. Honestly, with the great stuff the StocksToTrade team and I put out, you can start your solid trading education without spending a dime.
Here are just a few free resources to help you develop your trading skills:
The StocksToTrade Blog. This is what you’re reading right now. Go back through the archives to find tons of posts on all things trading.
The SteadyTrade Podcast. I’m biased, but I think this is one of the best finance podcasts ever. And it just keeps getting better. I record regular episodes with my awesome co-hosts. We get into deep discussions on all kinds of trading subjects. We also interview incredible people and have a great time. Never miss an episode — subscribe today!
The StocksToTrade Youtube Channel. If you’re a visual learner, we’ve got you covered. On our Youtube channel, you’ll find videos on countless trading-related topics.
My Monday Night Live Youtube Stream. I spend Monday nights live streaming for our Youtube subscribers. I answer questions, talk about the markets, share my trading screens, and so much more. Subscribe to our YouTube channel and tune in every Monday night.
The StocksToTrade 14-day Trial. Okay, this isn’t free, but it’s affordable at just $7. You get two weeks of access to the state-of-the-art StocksToTrade platform and its cutting-edge tools to help you find, analyze, and trade the best setups. Start your trial today!
What Am I Reading?
After meeting Grant Cardone, I thought I’d pick up one of his motivational books for some insight.
I settled on “The 10X Rule.” It’s about Grant’s philosophy on work ethic and life in general. It’s about doing 10 times more than your competition…
That could be in your business, with your family, or whatever endeavor you really want to excel in. Grant swears by this mentality and claims it’s the secret to his success.
This kind of motivation resonates with me. I love kicking butt and tackling my goals every day. But after reading this book, I think I can do even more.
Need to ignite a spark of motivation? This book might light your fire.
[As an Amazon Associate, we earn from qualifying purchases.]
The Bohen Conclusion
That’s it for this edition, folks.
I hope you stay calm with the flood of bad news stories. Remember, the media likes to blow things out of proportion.
Stay healthy. Watch for those awesome stock setups … then dive in for the kill. These volatile times can be great for traders…
And keep your trading skills fresh. If you’re just getting started, use the free educational resources I’ve mentioned in this post…
If you’re ready to hone your trading skills, come and join the StocksToTrade Pro community. You’ll have daily access to my team and me…
You’ll see my trading screens, learn what I think about the markets, and see which setups I’m tracking. Plus, you get regular cutting-edge training webinars.
You can also access our trader chat room, where you can interact with traders on the same journey as you.
Ready to meet the team? Join StocksToTrade Pro today!
What do you think about the current market? Do you prefer chill markets or are you a volatility fiend like me? Leave a comment!