This post is focusing on a trade in the stock market with Facebook I made a few days ago. I recently posted a cryptocurrency analysis on Substratum and mentioned that my strategy on trading is very simple, relying heavily on sentiment to make my trades:
. This trade is an example of that, although I may have also gotten a little lucky.
With Facebook's data privacy issues the stock was having a sell off. On March 16th the market had fallen to around $176 per share, the price we are at today.
I honestly didn't do much technical analysis on this one. I knew that previous highs within the year were hitting around $190 per share and I also realized that people don't care enough about their privacy. That is a general statement. Sure, those aware of the risks of not having a VPN and encrypting your text messages would disagree but they may also agree that the general consumer doesn't think about this and that in fact they love using Facebook. Facebook has run into this privacy stint in 2007, 2008, and 2010 on a large scale. Despite this, we're all aware of the success of this company and it's year over year growth.
So when I saw prices hitting lows of $150 for a few weeks in March and April I decided to purchase shares believing that Facebook was oversold. And as it goes when everyone else is fearful be fearless. I purchased Facebook on April 25th at $160.23 a share and with earnings beating expectations I was able to sell on April 27th at $174.37, a nearly 10% increase. I then bought back in a dollar below my sell price. With Facebook now targeting the dating market: www.youtube.com/watch?v=PBM6VQg1... I am long on this one. Let's see where we end the day today, whether or not a trend reversal is in place.
With Facebook's data privacy issues the stock was having a sell off. On March 16th the market had fallen to around $176 per share, the price we are at today.
I honestly didn't do much technical analysis on this one. I knew that previous highs within the year were hitting around $190 per share and I also realized that people don't care enough about their privacy. That is a general statement. Sure, those aware of the risks of not having a VPN and encrypting your text messages would disagree but they may also agree that the general consumer doesn't think about this and that in fact they love using Facebook. Facebook has run into this privacy stint in 2007, 2008, and 2010 on a large scale. Despite this, we're all aware of the success of this company and it's year over year growth.
So when I saw prices hitting lows of $150 for a few weeks in March and April I decided to purchase shares believing that Facebook was oversold. And as it goes when everyone else is fearful be fearless. I purchased Facebook on April 25th at $160.23 a share and with earnings beating expectations I was able to sell on April 27th at $174.37, a nearly 10% increase. I then bought back in a dollar below my sell price. With Facebook now targeting the dating market: www.youtube.com/watch?v=PBM6VQg1... I am long on this one. Let's see where we end the day today, whether or not a trend reversal is in place.