 Good Morning!  Yesterday I said Veru Inc. (NASDAQ: VERU) could set off the biotech sector.
But you know what?
Most of the hot biotechs from earlier this week tanked yesterday.
Sounds confusing, right? When you think of a hot sector, you think of a bunch of stocks in the same sector running together.
But biotechs are a different animal. You can't trade the same playbook with them. For example, multi-day runners are a rarity…
… and dip buys are almost out of the question.
You've gotta act fast to catch the big moves because they don't last long.
So today, I want to clear up a crucial lesson about biotech stocks…
The Key to Catching Big Biotech Gains The biggest problem with trading biotechs is that most traders don't know about them until it's too late…
They see a stock that's up 100% or more, then jump in without a plan or knowing why the stock's even up.
Or worse, they don't see the stock until the next day. Then they try to dip buy it when the move's already over.
Let me be clear: Biotech stocks are not dip buys.
To catch big biotech runners, your best odds are to catch the first-day move. When biotech companies announce news, that can bring in high volume and hype...
That's when you want to strike with your trading plan.
So how can you find these runners before they spike?
StocksToTrade's Breaking News Chat.
It alerts the hottest market news as it happens. The team alerted all the recent big biotech gainers…
 PHIO chart: 3-day, 2-minute candle — courtesy of StocksToTrade.com You can see the biggest and best gains were midday last Friday. That's when the company announced positive antitumor efficacy data.
The Breaking News Chat team alerted it when it was trading around $1.38. It made highs of $2.75 after hours!
The Breaking News Chat team also alerted Veru Inc.'s (NASDAQ: VERU) COVID news in premarket on Monday. And that morning was the best time to trade it.
Look at the chart since then…  VERU chart: 2-day, 2-minute candle — courtesy of StocksToTrade.com Yesterday's big morning gainer was Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT). It spiked over 250% after announcing cancer news.
 If you waited until the market open to enter (I don't recommend new traders trade in premarket), you could have caught a move of $2 per share or more.
But look what happened by the end of the day…  LIXT chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com You can see from these examples that day one of the runs usually offers the best trade opportunities.
So if all these biotechs eventually fail, what do I mean when I say the biotech sector is hot?
Well, I don't mean you should buy biotechs with no news and no volume. And I certainly don't mean buy these morning runners and hold for multi-day runs…
That's not how the biotech sector works.
When the biotech sector's hot, watch for the next sketchy biotech stock with news.
It could run higher than you think. But you must stick to the rules.
Focus on day trade patterns only. When you see profits, take profits.
And if you're missing these big gainers, don't think you're a bad trader. Get better tools to help you find the best potential trades.
StocksToTrade's Breaking News Chat puts two former hedge-fund traders to work for you. They sift through news to alert traders like you to the hottest macro and micro headlines that can move stocks.
It could be just what you need to level up your trading.
Have a great day. See you back here tomorrow.
Tim Bohen Lead Trainer, StocksToTrade
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*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.
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