Lessons from the Pros
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A student recently inquired if there was a difference in trading newer stocks versus older stocks. Newer meaning that they trade stocks of newly listed companies and had their initial public offering IPO within the last year.
Older stocks have been trading on the exchanges for several years. The online trading academy facebook is an overwhelming YES! There definitely is a difference in how these securities should be traded. Stocks are a lot like people in that they develop personalities. There are many institutions and market makers trading the same stocks daily.
When you identify the personality of the stock, you are more likely to successfully predict its behavior in both bullish and bearish markets. As a general rule, I avoid the newer stocks for any trading other than intraday and will not usually look to trade any stock with less than six months of trading history.
Online Trading Academy instructors warned students against buying the stock when it became public as most of the hype would die off quickly and cause the price to drop. Someone who held onto their Facebook stock from the IPO is now experiencing profits, but they wasted so much time in online trading academy facebook investing life where online trading academy facebook could online trading academy facebook made profits!
A better opportunity to trade this stock would be to wait for a confirmed trend and then buy on a pullback to demand. Learn how to find these and protect your money by joining us at your local center today. Brandon Wendell bwendell tradingacademy.
Disclaimer This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.
Reprints allowed for private reading only, for all else, please obtain permission.