Scream Oh missed it OR Quietly evaluate as a New Opportunity?
I will say - It depends with bias towards Buy. Let me share couple of examples
AMD - All it takes is one News and the stock can make a Big Move.
Here's what happened in April 2016:
AMD is up 37% today...why? Because market thinks a Chinese company will help it turnaround
— Deepak Singh (@smarket) April 22, 2016
Just see where the stock is a year later
The above chart offers a great lesson on how one should perceive a stock that makes a big move on a single day. It can be a great opportunity
Not convinced...Here's one more example: Sun TV
Sun TV stock made a 27% move on Feb 02 2017. Just see what happened after that -
It rallied another 40% in following 2 months. So, next time you hear a stock making 20-30% move in a single day, don't scream of I missed it. It might be a new opportunity
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers