Stevie Swai
Keeping in mind that many of the visitors to our website are working with small accounts, I like to bring up examples from time to time of high probability trades using the news which can bring excellent profits if you buy early, often in pre-market, and you’re willing to let go and lock in gains. As many of you know, I like to trade on PR releases. So while searching through the many releases which present themselves each day (and there are usually hundreds to choose from), how is it I narrow it down to the 1 or 2 I decide to watch?
Personally, I am most attracted to PR that will evoke an emotional response from the public which are usually things like excellent outcomes from phase 3 clinical trials for a promising cure for some wretched disease or condition which is what I found today with AMPE. Their press release read:
ENGLEWOOD, Colo., December 14, 2017 — Ampio Pharmaceuticals, Inc. (NYSE MKT: AMPE) today reported that the Phase 3 clinical trial of Ampion™ met its primary endpoint with 71% of Ampion™ treated patients meeting the OMERACT-OARSI responder criteria, which exceeds the physician reported threshold of 30% for a meaningful treatment in severe osteoarthritis of the knee (p < 0.001). Responders experienced, on average a 53% decrease in pain as measured by WOMAC A and a 50% improvement in function as measured by WOMAC C and a 45% improvement in quality of life as measured by Patient Global Assessment (PGA). In the secondary endpoints, Ampion™ treated patients achieved statistical significance in a composite endpoint of pain and function from baseline in both categories at 12 weeks (p < 0.001), which was supported by an increase in quality of life as measured by patient global assessment (PGA) (p < 0.001). When treated with Ampion™ (n=144), patients experienced significant improvement in a composite endpoint of pain and function compared to all KL 4 saline-treated patients (n=206) in Ampion™ phase 3 clinical trials (p < 0.001).
If approved, Ampion™ would be the first intra-articular injection to treat the signs and symptoms of patients with severe osteoarthritis of the knee (Kellgren-Lawrence x-ray grade 4). In order to support a label for signs and symptoms, Ampion™ was asked to demonstrate clinical efficacy in a composite response of pain, function and be supported by quality of life.
Ampion™ was well tolerated with treatment-emergent adverse events (TEAEs) comparable to those of placebo in all single-injection studies of Ampion™. There were no drug-related serious TEAEs associated with the Ampion™ arm. The safety and tolerability profile of Ampion™ is consistent with previous studies. To date, Ampion™ has been given to over 900 patients with no reported drug-related serious TEAEs.
Bingo! Bring on the cure for osteoarthritis sufferers. There’s nothing like good news and the reaction was almost immediate; the price shot up in the PM session and was trading 38-39% higher than yesterday’s close. It may have reached higher, but I’m not sure. Of course, I didn’t want to get in after that kind of move so I put a limit order in at 1.99, not really expecting it to fill. Much to my surprise, not only did it fill, but it actually traded briefly back at yesterday’s closing price of 1.75. My bad, I should have at least tried for a lower price. The stock opened at 1.83, so I was already down .16 which didn’t bother me in the least as the momentum was up and the price was quickly moving higher. I sold at 2.47 even though my target was 2.57. Why? Because hitting singles has proven to be a better account builder for me and trading consistently is far more important than holding out for home runs, especially when you have no idea where a stock is heading. A 25% profit IS enough, especially when you can repeat the trade and do it over and over every day.
Trader Scott and I have reiterated the importance of taking profits over and over again. Learn a particular trade and do it again and again. And decide what you want from that trade before you even begin.
Now getting back to why I got out as early as I did is because after years of watching these kinds of news pieces and observing the reactions to them, a high number of these trades are pump and dumps. They shoot up and then lose the gains, often times closing at just a couple of percentage points higher than the previous close and sometimes below. So I guess I’m saying, “I’d rather be safe than sorry”. If this stock holds up over 2.30, I’ll look to re-enter if I see a set up and sometimes it takes a couple of days for the news to get out so this one may still have some life in it.
Trader Scott included this symbol in this morning’s pre-market along with many others that were movers. We hope you are observing these stocks as many of them present excellent trading opportunities throughout the day. Keep your eyes open, stay focused and we wish good and profitable trades for you. Let us know how you’re doing.
Way to go Stevie, that’s how your experience pays off, not dismissing because of a big move up in pre-market.