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Biotech Stocks: Are You Ready For This? - YouTube
Channel: Timothy Sykes
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- What's up Tim Sykes
millionaire-mentor here
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with Tim Bohen, lead
trainer of Stocks to Trade.
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Today we're answering your questions.
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Leave comments just below if
you have any topics for us,
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we'll answer them all.
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Right now I want to talk
about biotech stocks,
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what do you think?
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- I love biotech stocks, especially,
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I know as things have
changed through the years,
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I used to be much more of a short seller,
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but I love low priced biotech stocks
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that are spiking in the resistance.
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You know, so many of these stocks
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spike and fail repeatedly on fluff news.
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If you are looking to be
an aggressive short seller,
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it's one of the best sectors to look at.
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- So I actually hate biotech stocks,
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they're the choppiest, most unpredictable
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in terms of news and predictability.
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Some people say, "Oh
FDA approval is coming."
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Everyone already anticipates it,
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sometimes these stocks get FDA approval,
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and the stock goes down.
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Sometimes the FDA approves their product,
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but puts a little warning, and
the stock gets crushed 70%.
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Sometimes you think that
FDA approval is coming
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and then it doesn't come
and then it gets crushed.
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Sometimes you don't think that its coming,
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no one thinks that it
does, and then it comes
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and then the stock is up 300%.
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So you can't really short sell those.
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So, guessing about FDA
approval very, very tough.
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Also FDA approval can come at
any time. This is the problem.
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With earnings plays, like you know,
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"Okay, they're going to
report earnings at this time,"
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like before the market opens,
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after the market closes on a certain day,
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so you can avoid that.
Don't try to guess earnings.
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But when you have these FDA
approvals they really can come.
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I like the shorting into resistance,
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but again, sometimes your whole
trade thesis gets blown up.
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- Well, you know my point would
be, allow me to elaborate,
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I'm talking like fluffy
press releases, you know.
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I'm not shorting any FDA-types news.
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If it's some biotech
like we had Dare today,
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I mean Dare is a longtime
terrible biotech stock.
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They had some sort of
female Viagra-type product.
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I mean, this is a stock that
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every time it spikes
on the fluff it fades.
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So I just want to elaborate,
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I love shorting biotech
stocks, low price biotechs
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with press releases versus FDA. Yeah, so.
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- Fair enough. I don't like short selling.
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I don't like biotechs.
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I don't like Steven Johnson.
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There are things I don't like
so I stay away from them.
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You have to learn what you like
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and what you don't like in life.
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For me biotechs, I've tried, I've traded,
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frankly a lot.
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Especially in the past
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and I just haven't had the consistency,
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so you have to choose
what works best for you.
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I'm sorry Steven Johnson.
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You're just easy to pick on, you're fun.
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You need to figure out what you're best at
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and what you're worst at.
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All of these videos, we're just sharing
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our own personal
experiences, our own takes.
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This is not an exact science.
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What works for me might not work for you.
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What doesn't work for me might
be the best thing for you.
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It's good to learn what works
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and what doesn't work
for different traders
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and their personalities.
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And we want you to basically
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take a little something
from every single trader,
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whether it's me, Tim Bohen, Tim Grittani,
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Tim Lento, Tims rule
the world, Michael Goode
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Mark Croock, Steven Dux, Ron Wolfley,
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all these guys who have had success,
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we're looking for some
females who have success,
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but learn what we're doing right
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and what we're doing wrong.
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Different traders do better
in different markets too,
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like right now, the
overall market is tanking,
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it's actually better for short sellers,
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so I haven't really been
doing that well lately
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because, frankly, I'm not that great
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of a short seller right now.
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I prefer shorting blatant
pump and dumps with promoters,
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there aren't that many of them.
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So don't feel like, "Oh
Tim said no biotechs ever."
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That's just my take, learn
why am I thinking like this
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and, you know, why am I telling you this.
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- Yeah. My last two points would be
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be very very careful ever going long
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a low priced biotech, I
mean they fail so often.
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There's so many better opportunities
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whether it be some sort of hot sector,
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you know, whether it be a marijuana,
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or a block chain or a
Chinese or a low floater.
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There's so many better long
opportunities out there.
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Now if you are determined to
trade a one dollar biotech,
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like Dare, again, as an example,
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look for those just fluff PR's,
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look for that longterm
down trending charts.
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So many of these you'll
see them where they just,
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they go down, down, down,
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they spike for one day, and they fail,
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and they repeat that pattern
as they proceed to zero.
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Now they can often be tough to borrow,
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but if you're looking to
trade a one dollar biotech,
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I think the edge is almost
always on the short side.
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- What was your second point?
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- My point, the first point was, you know,
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what was my first point? Didn't I say it?
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- In this case no. He
doesn't eat his vegetables.
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He eats too much meat, hurts your brain.
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In the long term there
are biotech studies-
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- I think I had a first and second point.
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- Always remember that,
you know, these companies
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will sell you their best,
you know, case scenario.
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Like they're basically
cheerleading their own companies,
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you can never believe management,
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you always have to say,
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"Okay, that's what you are gonna say."
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Remember Bear Stearns'
CEO or CFO was on CNBC
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the day before they went bankrupt.
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They asked him, "How was everything?"
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He said, "Fine." Next day, bankrupt.
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So you can't believe management,
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especially in these penny stock biotechs.
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You can't believe how amazing
this drug is gonna be,
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and it's gonna, you know,
save all these people.
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It's nice to believe that,
but most of the drugs fail,
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most of the penny stocks fail,
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most of the management-
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- That was my first point, and I said it.
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My point was be very dubious
of any of these news.
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- Be cynical. I'm sorry,
I wish that more biotechs
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could save more people but,
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you know, this is why medicine
and disease is so rampant,
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like it's a very tough
thing to cure disease
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or to even, you know, make
people a little healthier.
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So be dubious, be cynical,
leave comments below.
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Let us know what you
think about this video
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and give us more
suggestions for more topics.
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We're here to answer your questions.
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- Hey, Tim Sykes millionaire
mentor and trader.
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Thank you for watching my videos.
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I hope that they help you.
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I want to share everything
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that I've learned over the years.
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