If you are interested in doing better than the average stock trader, then you need to research the best opportunities. Google Stock is one trading stock that has performed better than most since going public ins Dutch auction style initial public offering.
The stock was initially priced above $100 per share. Due to the financial conditions around the time frame that Google went public, the initial price was set to $85 per share. Shares quickly traded up to more than $100 on the first day of trading. A number of people lucky enough to get their hands on some shares at $85 banked a tidy little profit quickly.
But for those willing to hold on longer, even larger profits lay ahead.
Over the course of the next few years as Google’s profits increased, the stock rose more than seven hold, eventually trading well over $700 per share.
When the U.S. and world economy declined starting in late 2007, Google’s stock did the same. From the high o, the stock traded all the way down to the $300 range before finding support and eventually rallying to the current price near $500.
So what does this have to do with making above average market returns by trading stocks?
Considering that Google’s stock price increased more than most stocks in the time frame from August 2004 to 2007, the stock was on the radar of ever major stock trader in the world. When a stock moves like Google did, following the momentum typically results in favorable results. In this case, the best, i.e. most profitable course of action would be to buy the stock on breakouts to new high prices. Smart traders that used protective sell stops would have been rewarded by losing money infrequently while taking profits often.
Of course, when the stock turned down with the rest of the economy, traders using a breakout method of trading would have been on the sidelines and missed out on the decline. For traders who trade only the long side of the market, this is perfect as it keeps their precious trading capital intact for the next trading opportunity.
While the author of this article is famous for trading stocks, he is also fond of cheep shoes.