Yeah. He's a moron. He lost 10bps of his net worth on one trade. No one here ever loses that much on a trade.
Mark Cuban breaks one of tradings golden rules
- Thread starter OnClose
- Start date
Yeah. He's a moron. He lost 10bps of his net worth on one trade. No one here ever loses that much on a trade.
I think he should have kept adding to the position. In the last 10 years, I don't recall any IPO that tanked right out of the gate. If they dipped first they reached the IPO's price later on. Just like ZNGA. It dipped from $10 to 8, just to go up to 15-16....
So had he kept averaging in, he would be in profit or at least break even right now...
By November, Facebook will have reached its true value of $21 a share. That's when you buy it.
It doesn't always work that way.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=113413&perpage=30&pagenumber=2
In terms of value and current revenue growth, I think the stock is worth $21. At $21 I'd be prepared to buy and hold.
And given the fact that the market rarely goes up between may and september, I wouldn't hold a long position until October.
So 21 or 22 in October is a good risk reward. Anything else is just gambling.
I love it how Elite Traders like to school a billionaire like Mark Cuban.
Isn't what those market guru's tell us with buy and holding in everyone's 401k?