You wouldn’t participate in a marathon without going through rigorous training beforehand and you most certainly shouldn’t decide to initiate trading without conducting thorough research. As a first-time stock trader, I wanted to understand the stock market before divulging my allotted funds into publically traded companies. So, I set out to find the catalysts behind price movement in the market for public traded companies, in order to determine when I should potentially long or short a company’s stock. In addition, I wanted to understand how to locate stocks with catalysts as well. As a result, I sifted for hours through online publications before finding the three general catalysts that impact stock prices which were a company’s earning’s
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So, I set-out to figure out mediums that would allow me to find catalysts, and to my surprise, MarketWatch the hosting website of the competition was my main source of information, as they allowed me to sift through news articles swiftly and create personalized intraday screeners to allow me to determine which stocks symbols were moving the most percentage wise, with volatility that had or didn’t have catalysts that I could potentially divulge my funds into for that period. After understanding catalysts and utilizing MarketWatch for news and intraday screeners, I was able to begin stock trading …show more content…
I decided to invest in the near bankrupt company, KaloBios following the news that the infamous, ex. Turing Pharmaceuticals CEO Martin Shkreli acquired a controlling interest in the company. While watching my personalized MarketWatch stock screener precisely, I could see that $KBIO stock had experienced an 80% gain intraday moving with momentum, but I couldn’t divulge my funds into the stock because the game prevented individuals from trading stocks under seven dollars a share. As a result, I had to wait until it exceeded that price level in order to execute my market order. After waiting just over half an hour, the stock had surpassed the restriction price and I executed my market order divulging a majority of my allotted funds into the stock. Initially, the moment my order was executed, the stock price tumbled dropping more than 30%. But I knew that there was potential to make a positive return on my investment due to the fact that Shkreli had published via Twitter a positive catalyst, stating “KaloBios signed an agreement to buy a program aimed at treating Chagas Disease with the drug benznidazole” so I held my position on Friday and Monday I was pleasantly awoken to 105% return on investment (Exhibit B), in which I sold immediately. KaloBios, stock eventually proceeded to increase to an astronomical 800% in the following weeks,
So, I set-out to figure out mediums that would allow me to find catalysts, and to my surprise, MarketWatch the hosting website of the competition was my main source of information, as they allowed me to sift through news articles swiftly and create personalized intraday screeners to allow me to determine which stocks symbols were moving the most percentage wise, with volatility that had or didn’t have catalysts that I could potentially divulge my funds into for that period. After understanding catalysts and utilizing MarketWatch for news and intraday screeners, I was able to begin stock trading …show more content…
I decided to invest in the near bankrupt company, KaloBios following the news that the infamous, ex. Turing Pharmaceuticals CEO Martin Shkreli acquired a controlling interest in the company. While watching my personalized MarketWatch stock screener precisely, I could see that $KBIO stock had experienced an 80% gain intraday moving with momentum, but I couldn’t divulge my funds into the stock because the game prevented individuals from trading stocks under seven dollars a share. As a result, I had to wait until it exceeded that price level in order to execute my market order. After waiting just over half an hour, the stock had surpassed the restriction price and I executed my market order divulging a majority of my allotted funds into the stock. Initially, the moment my order was executed, the stock price tumbled dropping more than 30%. But I knew that there was potential to make a positive return on my investment due to the fact that Shkreli had published via Twitter a positive catalyst, stating “KaloBios signed an agreement to buy a program aimed at treating Chagas Disease with the drug benznidazole” so I held my position on Friday and Monday I was pleasantly awoken to 105% return on investment (Exhibit B), in which I sold immediately. KaloBios, stock eventually proceeded to increase to an astronomical 800% in the following weeks,