Tonix Pharmaceuticals Holding Corp.
It’s a biotech on the NasdaqGS.
Float is pretty big at 52 million – according to Yahoo Finance – or 125 million – according to Stockstotrade.
Both say the Shares outstanding is 125 million.
Either way it’s a microcap at roughly $250 million.
I traded it yesterday and sold right before the breakout because I wanted to walk my dog and have breakfast. Into power hour.
What can I say? I love my dog. When he waits all day for a walk, I start to feel guilty.
And he doesn’t get breakfast until I do either, so it’s really not fair to him to wait all day for his walk and breakfast.
Anyway, TNXP traded almost 200 million shares yesterday, so I was interested in it.
Yesterday, I was watching the higher lows in the 1.10 area. I think I was in at an average of 1.19.
I said “if it breaks 1.25, it’ll be a short squeeze and blow through the 200 day moving average at 1.34.”
Well, it did short squeeze, but it kinda got hung up at the 200 day moving average and that’s where I took my profit and went for my walk. It squeezed harder and ran without me while I was walking.
At the end of the day, when I was building my watchlist, I noticed it closed after hours near the day’s high and predicted that it would run today.
And so it did.
All through premarket I took paper cuts and tiny wins as it appeared weaker.
I should have waited for the dip, but I was worried about it running without me.
Which is counter intuitive since I didn’t want to get in because it looked weak.
I knew it would run, but I didn’t know when.
So, I got in as it was putting in higher lows with a plan to add on the dip, but when the dip finally came I got scared and got out for a loss, but that was actually the opportunity that I had been waiting for. I realized that. I got back in as it bounced up. I tried to set a stop so I could take myself out of the equation but
E-trade won’t let you put a stop in above the previous day’s close during extended hours.
For Example, if the previous day’s close is $1.55, your stop has to be $1.54 or less during extended hours because E-trade’s computer’s think the price is $1.55.
So, I was feeling confident in the trade. I finally got in on the dip.
I readied my stop loss order and sent it as soon as the bell. Fortunately, TNXP went straight up from the bell.
Lately, I’ve been buying these multiday breakouts and selling way too soon.
They haven’t been even dipping near my entry before continuation.
So, I’m picking them right, but playing them wrong.
I was determined to be patient with TNXP.
When it broke to 2.50, I moved my stop up to 1.90 – give it room to breathe.
I waited through chop and held my ground – very proud of myself for that. I didn’t stop-profit.
Honestly, with the volume (100 million shares traded before noon), and all the indicators in my favor (above breakout level, above 50 sma, above VWAP), I felt very confident holding. It bounced several times. There were massive amounts of shares on the bid and I decided that if it came below 2, it would be done but I could otherwise be patient. I thought, based on chart history, that if it could hold 2 and break 2.50, it would get to 3. My intention was to sell at 2.75 for a point.
With that logic, I moved my stop up to 1.99. If it failed 2, it would fail hard.
I’m very proud of this trade.
I could’ve taken excited profit at 2.25 or 2.50, but I maintained discipline and stuck to what I knew:
That the stock had great potential and it could have brought me much profit if it held two.
That if it broke under two, it would fall hard.
I planned my trade. I traded my plan.
Often, even when I’m in before volatility, I get shaken out.
This time, I didn’t let the volatility scare me into taking profits.
I took profits at an appropriate time and not out of emotions.