There's nothing like a rumor on Wallstreet to move a lagging stock. Remember when Netflix (NFLX) shot up on rumors that Disney (DIS) wanted to acquire it? How about those rumors that helped Teslas' (TSLA) stock when we thought they were pairing up with Apple (AAPL)?
And most recently; Twitter's run on rumors that Saleforce (CRM), Alphabet's Google (GOOG), (GOOGL), Disney (DIS) and some nameless others are potential suitors? That rumor allowed Twitter (TWTR) to go from a close of $19.11 before said rumor to a high of $23.57, after rumor was reported. A gain of over 20% in only two trading days.
One thing we know or we should know is a good rumor on Wallstreet can do a lot for a stock's share price.
But what happens next? Tesla recently traded at yearly lows and Netflix is 30% off its yearly highs.
Get the picture?
On Wallstreet a rumor is just that, a rumor. You can trade a rumor but make sure you're not marrying said rumor.
Rumor has it; when you want to create a market to unload your shares; the best thing you can do is, start a rumor.
Remember, the deal isn't done unless the fat lady sings.
Check out how I traded Twitter after Friday's rumor here.
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If you missed the first part of my “Rewind” blog, check it out here. For those of you who’ve been following all along since my journey started, this blog recaps what I've blogged about since part 1.
If I can sum up the content of “Rewind II (Part Due)”, it mainly tackles the shady world of pennystocks, the psychology of trading and the importance of having a method.