Actually, I'm worried that FB is growing too quickly, I wish Zuck would cut back on buying other companies. FB needs to focus on monopolizing mobile.
I don't know about you, but sometimes when I'm trading, I start to think the market isn't much different than a craps table. You can bet the dice will pass (going long) or don't pass (going short). The analogy breaks down when you realize it's possible to consistently win trading stocks and options.
Mr. In and Out,
I like your style, I can see you bee-bopping with a boom-box on your shoulder and strutting......my, oh my, what a sight.
If you're going to go long, then make it at least a couple of years. In the interim writing puts will put money in your pocket and allow you to buy FB at a discount.
Have positions in GLD, GE, and FB. Other than that, I'm in cash also. Although prices on various stocks look real good, I'm not planning on adding or increasing any positions. I learned a while back that sometimes a smaller position is better than a larger position. It holds true for days like this.
Market might turn around by Monday. People will say, "wait a moment...a delay in recovery of the economy is good for stocks." Could be the beginning of run-up to earnings for FB.
If Longs are waiting for ER then the Shorts will control trading until then. There may not be much of a run-up to earnings.
You made some good points. It also depends on how "long term" you are. For some people long-term is years, for others they are momo-traders. They may buy on the uptrend, but they are hoping to get out before the uptrend is over. Make sure that you not only plan an entry price, but the time period you will be trading.
Well...if this happened everyday, we would always end up where we started. Then we would be basically wasting our time observing the FB's price changes.
Are you in or out, right now? Don't bother with what is already known because it has already been priced in. The only way to beat the computers is the "apples for oranges trade." I'll give you an example, let's say you have bought some puts. Now let's say FB continues to go down, now the value of your puts have gone up. All of the sudden this is the perfect time to sell the puts for calls. It is the ultimate in contrarian trading.
The market makers believe in equal opportunity....first, they let the shorts drop FB by selling, then they screw them by raising the price. Second, they let longs buy while the price is rising and then they screw them by dropping the price. Equal opportunity...lol. They rake in the bucks.
Out of the frying pan into the fire. The national debt has been huge for a long time and GLD continued to drop. Many big investors bought gold while it was dropping but they are still underwater.