By Barrie Einarson | Trade Ideas

Hey everyone, Barrie Einarson from Trade Ideas with today’s edition of What Makes This Trade Great? To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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Today we’re looking at IOVA (Iovance Biotherapeutics), and this is a great example of why paying attention to the news can make a big difference in your trading.

We spotted IOVA in the pre-market after the company released some disappointing pharmaceutical data. The market clearly didn’t like what it saw, and the stock was getting absolutely hammered.

At the time of recording, IOVA was down approximately 35%.

Now, when the market first opened, there was a moment when it looked like the stock might actually bounce.

And that’s something you have to watch for with these big selloffs.

Sometimes a stock drops so much on bad news that traders start looking for an oversold bounce. I was watching to see whether IOVA might recover some of those losses.

But that wasn’t what happened.

Instead, the stock started selling off again.

I was considering taking a short position and eventually decided to enter as the selling pressure picked up. The stock continued dropping and eventually broke below the $10 level.

Now, I didn’t manage to stay in the trade for that entire move. I got a little jumpy and exited earlier than I probably needed to.

But I still did very well on the trade, and that’s what matters.

You don’t have to catch every penny of a move to have a successful trade.

The biggest takeaway from IOVA today is simple: news matters.

When a pharmaceutical company releases disappointing results, the market reaction can be dramatic. And even when a stock already looks oversold, that doesn’t necessarily mean the selling is finished.

IOVA was a perfect example of that today.

Sometimes the best trading opportunities come from understanding what’s driving the price action and being ready when the market confirms the direction.