In order to profit from biotech stocks like TrovaGene, Inc. which trades on the NASDAQ with the ticker TROV, it's essential to be watching stock screeners DAILY during power power between 3-4pm in the last hour of the day's trading session.  Look for increased volume of shares traded in the last hour and keep your eye on those stocks making new percent gains compared to the prior day's price action.  Buy the afternoon breakouts, and hold a position overnight (only) if the stock is moving up based on a sound catalyst such as a formal press release, an analyst upgrade, or a good earnings report.  Do not hold the stock overnight if the stock price has an afternoon breakout on NO news. 

TROV had a nice breakout at 3:15 pm 45 minutes before the market closed at 4pm where it was trading just under 35 cents a share to closing on the day just over 40 cents a share.  Remember, trading is not scalping. Trading is about identifying select opportunities to consistently grow a small account into something larger. 

When you see an afternoon breakout on good news,  in this case the breakout was a five cent increase, it's fairly low risk and fairly high reward to hold a position overnight.  

Stocks that have an afternoon breakout on good news most often continue to spike in after hours trading (from 4pm-8pm).  This can sometimes predicts good pre-market trading (from 4am-9:30am) activity the following morning before the 9:30am opening bell.  Pre-market buzz generally predicts a morning gap-up, where the stock opens at a price higher that the prior day's closing price.  Morning gap-ups also sometimes become morning spikes as those who are long overnight sell their long position for a profit. 

If your account is under $25K the account is restricted by the pattern day trader rule. Do not have the mindset that this handcuffs your opportunities, rather, be more select about which stocks to trade and try the strategy of holding a stock overnight where there is good news and an afternoon breakout. Sell into the first hour of the market open the next day. 

 

SONNY