You're welcome, Zeezout.
Btw: Much of the , and you can learn about at tradimo is also applicable to stock trading.
Facebook (FB) – Discussion
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In my experience there is of course mass hysteria in it as well, but there are also a lot of people who do not even know that you can go short and long on stocks or that you can trade after hours. So in a way I feel that earnings trading is dominated by professionals, CFD and option traders and that the masses rather jump onto the wagon the following day.Fiskantes:
I wonder how this result news is traded among professionals, is there any system in it or when the news are released everybody is just jumping in and out?
From my inexperienced point of view it seems like mass hysteria a bit.
I have not checked out the statistics for that though, so I might be wrong. -
Yeah, I guess there's a lot of material that will be useful in other kinds of trading.
The psychology will have many similarities and the same will be with analysis, I guess.
Learning one thing will help in learning other things too.
That's why I like tradimo so much
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The psychology is exactly the same you'll find, same with money management and everything really, just as Sebastian says.
So in a way I feel that earnings trading is dominated by professionals, CFD and option traders and that the masses rather jump onto the wagon the following day.
Sounds solid, in fact I would say that's absolutely the case in what ever market you trade in. -
And the numbers are live: http://live.reuters.com/Event/Facebook_Announces_Q4_2012_Earnings
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Share price is down despite decent numbers:
Monthly Active Users were 1.06 billion as of December 31, 2012
Daily Active Users were 618 million on average for December 2012
Mobile Monthly Active Users were 680 million as of December 31, 2012, increase of 57% year over year -
Stocks trading is very emotional, ever heard the saying "buy the rumour, sell the fact"? It really does come down to that sometimes.
But that's where psychology really comes into it, because you can learn to deal with this and take out the emotional parts and then play on the emotion of the stock market - does that make sense? -
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What a way to demonstrate my point! Earnings beat estimates, expectations around mobile growth was high and yet shares slide out of fear of future growth!
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As a short-term trader this was indeed interesting I would say. I think that a few nervous fingers sold the stock short at seeing figures that did not exceed expectations in a crazy way.
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It's trading -4% now, lowest was -9%, recovered to -3%, back to -5%, and to where we are now.
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Yupp. I think people first saw a miss or at least no big outperformance when looking at the numbers quickly. Then, people realised that the numbers were actually not that bad and the stock went back to -3% right there. I think there were also a lot of short term option traders involved, with put volume being excessive. Those seem to have been betting on a price below $28 by end of March and might now realise that they were wrong to hope for a big miss. Potentially, they have to cover now which drove up the price a little bit after the first few seconds. What do you think?
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It seems that although Facebook is growing, investors are not happy about how fast its growing and this isn't supporting the current stock price.
The temporary rise in price can also be down to shorters taking profit. The next hour or so will tell a bigger picture. -
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Facebook gapped down as expected after the earnings yesterday and the aftermarket movements. The market has some what recovered, it’s trading above the trendline and it looks like it wants to close the gap above. … We will see which gap gets filled first… Strong resistance at the 50% Fibo at 30.27
Larger chart: http://i49.tinypic.com/2052po9.png -
Upper gap closed
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Yep. now plus 0.2% - fascinating!
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NASDAQ has been in talks regarding the IPO of Facebook
System failures caused a 20 minute delay. This means that there could be settlements as the Securities and Exchange Commission is looking into it.
You can read about this here:
Nasdaq in talks on botched Facebook debut
