The Key to Success

I was fortunate enough to attend and speak at TradersACause charity event in Las Vegas this month. This was my second time at the event and in my opinion it is one of the ‘must-do’s for anyone taking trading seriously especially if they would like to network with like-minded traders and industry experts. In the event you will find real people, real topics, no egos & just pure learning and sharing experience…the way I like it!

The title of my speech this year was: ‘The Path to Self-Motivation & Success’. I didn’t want to talk about just trading but self-motivation and & success in general terms. My speech started with one of my favourite stories, let me share it with you here:

In the middle ages there was a young man who was living in a mountain village. He was a perfectionist and was obsessed with being successful. He wanted to be very very successful. He asked: “What is the key to success?”. People in the village tried to answer but none of the answers satisfied the young man. One of the elders in the village told him about a wise man who was living at the top of the mountain, in a cave, and he might be able to answer his question. However, he also warned him about the dangers of the journey. It would take several weeks and he would need to face wild animals and snow storms on the way up. The young boy didn’t even think twice. He immediately decided to go and find the wise man who could finally answer his question…

1442995-1920x1080-desktopnexus-comThe journey took several weeks and finally the young man arrived at the cave. The wise man was inside. He looked at the young man said “Come inside, Boy! Tell me what is in your mind?”. The young man was very excited to see the wise man and asked him the question at once: “What is the key to success? Please tell me!”. Wise man smiled, looked at him in the eye and said “Come with me, boy!”. They left the cave, walked some distance and arrived at a mountain lake. The water was crystal clear. The wise man went in the lake, water reaching his knees and said “Come here boy, the key to success is right here” pointing under the water. The young boy was so excited; he went in the water immediately. He kneeled down to see and find the key but he couldn’t see anything. The old man said “It is right there, can’t you see it?”. The young boy still couldn’t see the key and put his head right near the edge of the water to be able to see better. Suddenly, the young man felt himself seized by a strong hand at the back of his neck. His head was forced down under the water, and held there firmly. He didn’t know what was happening but he needed to breath. Fast! Just as he was about to give up hope, thinking he is going to die there, the hand on his collar let go. Violently leaping onto the shore, the young man drew in his breath in heaving gasps. Oxygen flooded his lungs. His vision grew clearer, the hammering in his throat slowed down, his hands finally stopped trembling. The wise man looked at him and said ” What was the most important thing that you wanted when you were under water”. The young man answered “It was air!”. The Wise man continued: “You wanted to know the key to success. Now you found it… Do you remember, just a few minutes ago, how badly you wanted to take that next breath of air? When you want success that badly, you will have it. That’s the secret of success. The Success is WITHIN you – it is not somewhere to be found or told, you just needed to realise that you already have it..” and then the wise man left…

Young man sat down there for a few hours. He now realised the power of self and self-motivation and became successful in everything he did in his life….

Ask anyone if they want to succeed or not, and you’ll get a firm ‘Yes’. But ask them what they’re willing to give up, sacrifice, suffer, accept, tolerate and forego for that success, the answer is generally not as clear…

I then continued my presentation with Triangle of Success.

capture1

To be successful in anything we do, we need to have 3 key ingredients: Skill, Attitude and domain knowledge. Due to time constraints, in my speech, I focused on the most important two sub-ingredients which are Goal Setting & Self Motivation…

I have written an article about importance of Goal Setting in the past. You can read it here. I sunmmarised that the most important things to do when we set goals are:

  • Writing them down (It is scientifically proven that you are much more likely to complete the goal if you write it down and make it tangible)
  • Visualising Yourself Completing That Goal Successfully
  • Setting Interim Goals (so you divide a big goal into digestible smaller goals)
  • Evaluating Your Goals (There are thousand ways to climb the same mountain, if one way is not working – find another way)
  • Achieving your goal and Rewarding Yourself (Part of your motivation)
  • Repeat

Setting Goals might be easy enough but how will you motivate yourself to complete that task? In my speech I mentioned about the Self Motivation Formula:

M = E x I x V

M = Motivation

E = Expectancy (Will my hard work result in measurable progress toward the goal?)

I – Instrumentality (How likely is that I will be rewarded or punished)

V = Valence (What is the size of my reward at the end?)

As it can be seen from the formula, Motivation multiplies with combination of the above. When setting goals, you need to think about the above ingredients and decide on the ambition of your goals.

And never forget, The only thing that will stop you from fulfilling your dreams is YOU. Believe you can & You are half way there…

I hope this helps.

Yours,

MT.

Roulette and the simple way of maximising your chance of success (Martingale Betting System)

I hope you are all having a great weekend. A blogpost about something different today. Let’s look at Martingale Betting System and its use in Roulette, the table game.

Let’s make one thing very clear, I DO NOT gamble unless it is for a social occasion. I have nothing against people gambling for having some good time (more for socialising purposes) but I have zero respect for people who can’t control themselves and lose a lot of money unnecessarily to the casinos.

Living in Monaco comes with its perks. After all, Monte Carlo is the place where it all began. The funny thing about Monaco is Monaco citizens (note not residents – means two different things) are not allowed to gamble. This is almost ironic, basically giving the message that Monaco will entertain you the max, take your money and then will send you home where your bank manager is waiting to have a word… (a bit like Vegas – perhaps a bit more classy way of taking your money). And that is exactly what happens in the Monte Carlo Casino.

I socialise and go to the casino quite frequently. My wife and I are members of number of societies in Monaco where after a great meal in Hotel de Paris, the night generally ends in the Casino. The only game I would ever play to socialise with the crowd in the casino is Roulette. There are number of reasons for this, which I will explain below.

Now let’s go back in time, all the way to 18th Century. We are now in rural France. You are looking at a house lit with oil lamps and a man is working hard on advanced probability theory. This is the Martingale Betting System. It is originated with the betting on heads or tails using a coin. In classic Martingale system you double up the next bet after each loss and as soon as you win you reduce your bet the initial amount after each win.

You will never leave the casino penniless with this system – the winnings will cover all your net losses of the previous bets (all IN THEORY!!!).

Let us use an example to understand how it works. Let’s say you are playing classic or European roulette (so we have RED, BLACK and only one GREEN colour on the roulette). This means, as a player, you can bet to the colour RED or BLACK. If you win you will get win double your bet.  Let’s say you always bet to RED colour. To win you need RED colour (any other colours such as BLACK or GREEN means that you will loose the bet).  By the way you can bet to RED or BLACK this doesn’t make any difference. The probability for both are exactly the same.

Let’s say, You bet 1 dollars to RED and lose the bet, the next time you now have to bet 2 dollars (this is how Martingale System works, you need to double your loos). If you happen to lose your 2 dollars, you must bet 4 dollars the next spin. If you lose again, do not give up! Bet the increased amount of 8 dollars! When you win (Let’s say at $8 bet – now you have won $16) you should reduce your next roulette bet to the starting amount of 1 dollars. As a result, you will always have a minimal gain. In our example it is 1 dollar minimal gain: $16 – ($1+$2+$4+$8)=$1. Well, using Martingale system, in theory, you can’t loose. Sooner or later you will get the colour of your choice and you will at least win the minimal bet amount.

Let’s have a look at your probability of losing under Martingale System, here is a chart:

212702-138996791487952-Jake-Huneycutt

If it sounds too good to be true, it generally is!

As the old sayings go, in the long run the casino will always win. Because they have an advantage, the GREEN (0) to their advantage. The catch is you’ll get red *less than* half of the time (as seen above), since there are black and green spaces on the wheel. You can keep doubling your bet and eventually you’ll win a whole $5, or eventually you won’t have enough money to double your previous bet and you’re screwed. Or you will hit the table maximum. Most online casino do not let you to bet more than $1000 on a roulette table. Some do but they will always have a maximum limit to stop you winning. This means that if I bet on RED and if I start with $1, I will only have 10 chances to get RED ($1, $2, $4, $8, $16, $32, $64, $128, $256, $528, $1016). It sounds like 10 BLACKS and/or GREENS in a row looks like a small chance, it happens all the time. The more you play, the more likely you will get this in a row. Trust me, it WILL happen!

Once I first discovered Martingale Betting system years ago, I straight away wrote a software programme to automate Martingale and make a million! It worked successfully and bet exactly how I wanted but at the end of the day (was trying demo accounts only of course), I was always the one who was losing at the end of the day. It is simple mathematics.

In the short term, the system will very likely to work. So if you want to impress your friends or family, it is a great trick in the casino. Take your winnings and never play again that day. That’s what I do.  One thing is for sure, trying Martingale in a demo account is so much fun. You want to test it? Follow the link and have some weekend fun (DON’T LOOSE ANY MONEY!):

http://casino.williamhill.com/ (choose European Roulette)

If you like the article, let me know on twitter.

Have a nice weekend.

MT

Trading Psychology – FOMO (Fear of Missing Out)

There are number of ‘Fears’ that a trader will experience in his/her career. The most important three fears that often manifests themselves are: Fearing of Missing Out (FOMO), Fear of Loosing Money (FOLM) and Fear of Being Wrong (FOBW). In this article, I will specifically focus on FOMO, what it is, how it can affect your trading and how to prevent it (as much as you can).

Fear of Missing Out (FOMO):

Fear of Missing Out is a well researched psychology topic that is not only true for trading but also for every day life. Most scams (and well scripted marketing) work due to recipients’ FOMO ‘triggers’.

If you want to understand FOMO better, I strongly suggest reading two research paper by Kernis (2003) and Ellion (2007). They argue that self-determination theory (SDT) a macro-theory of human motivation provides a useful perspective for framing an empirically based understanding of FoMO. According to SDT effective self-regulation and psychological moods are based on the satisfaction of three basic psychological needs:

  • competence – the capacity to effectively act on the world,

  • autonomy – self-authorship or personal initiative, and

  • relatedness – closeness or connectedness with others.

Today’s retail investor is a social animal. We are following each other on social media (twitter, facebook, instagram, etc.) and also bombarded by emails and other media channels. We are being sold ideas and concepts every single minute of the trading hours (and pre-trading and after-hours). What we are really trying to do is to feed the three psychological needs above and/or try to get confirmation (and comparison).

We follow each other, we hear news that this is the must have stock (or the stock that needs to be shorted immediately). We see so many people are doing the same thing and we feel left out (the feeling is: everyone will make big bucks and if I am not doing anything! I will simply loose out on a great trade!) or worse,  in some circumstances, you might be already in the trade but you start doubling your position (just because everyone else is doing the same) and pay the price later. We all know that if everyone is doing the same thing, the trade becomes crowded and thinks start to turn for the worse…

Realization and Action

As traders, we need to realise something very important as early as possible  in our trading career. We simply can’t catch every stock move and we can’t trade stocks every minute of every day. This is a fact! If you can accept this fact then you have ultimately accepted that you will miss some trades (this is perfectly OK!). The real rule to be successful in trading is to have a working strategy. Everyone trades differently, no two traders trade exactly the same way so your strategy will be different then my strategy however there might be similarities that puts us on the same set (i.e. short trader, long trader, momo trader, stock trader, fx trader and so on..). Don’t feel like an outsider or feel being wrong just because you are trading differently to someone else or to a group of people. Don’t forget there is money to be made  in so many different ways from the same stock.

All traders struggle with FOMO time to time. If someone is saying they don’t struggle, they are simply lying to you. Trading experience of course helps with this immensely. My simple rules that help me to stay in check are:

  • The Action Plan: Always have a plan before entering in a trade. Ask yourself what is your edge for entering in this trade. You need to KNOW why you are entering, what size you will be using,  when you will be exiting and what you will do if the trade goes against you. You are not going into this trade just because some guru or a friend thinks it is a good idea. KNOW your trade and KNOW what you want from it EVERY SINGLE TIME YOU TRADE!

  • Be Disciplined: As you now have an action plan, the truth is executing that action plan is more difficult than to have an action plan in the first place. This requires discipline and determination. Don’t forget that HFT algo that you are trading against doesn’t have emotions and will follow rules to the letter. You should try to do the same (as much as you can).

  • Learn to be happy with your achievement: We all want to make a killing from a trade. Reality is trading is extremely difficult. Once you have executed your plan effectively, either you made a profit or a loss. Either way, you have done what was necessary for the trade and successfully filtered out the noise – well done on that. Even though it was a loss, you cut it on time as per your action plan. This is great news. If your trading strategy is profitable, in the long term you will make serious money from trading. As you are following your rules, you WILL be consistent and you will achieve consistency in trading.

I hope this helps. Have a nice weekend.

MT

 

 

 

 

Introduction to Options Trading – an easy to follow guide

Apart from buying or shorting stocks, there are other ways of trading the underlying securities. A good trader is the one that expands his/her tool set. I will be describing options trading in this article. I will try to keep it as simple as possible so especially the new traders can benefit from it and start using it.

Options Basics

As the name suggest, an ‘option’ is a defined contract that grants the trader to buy or sell an underlying asset at a specific price on or before a certain date.

There are two types of options:

  • Call Option: This is the option to consider if you think the price of the security will be going up.
  • Put Option: This is the option to consider if you think the price of the security will be going down.

Please note that the standard stock options and ETF options expire on the third Friday of the month (hence the volume increase in the markets at this specific date). There are also around 80 stocks in the stock market that their options expire every week on Friday. These are referred as ‘weekly options’.

In options trading, the prices are quoted as per share amount. The minimum contract is always for 100 shares. So in example: if the option price is quoted at $5 the actual cost would be $5 x 100 shares = $500 (not including trading commissions).

Option contract example:

XYZ February 10 Call at $2.20

Lets analyse the option contract above:

XYZ: this is the underlying stook (100 shares / option)

February: this is the expiration month (3rd Friday of the month, the contract will expire)

10: strike (exercise) price – so if the contract is exercised, the price for share you will pay is $10.

Call: this is the type of option. It can be either call (when you long) or put option (when you short). In this example we have a call option (so we are going long) and this enables us to buy the shares at the given price (in this particular example at $10).

2.20: this is the ‘premium’ you will pay to be able to buy this stock at the given price of $10. So the premium you will be paying will be $2.20 x 100 shares = $220 for 100 stocks for this example.

Long call strategy

  • This is a bullish strategy with a expectation of higher price of the stock at the expiration date. So if you buy the stock at $10, the expectation is it will be higher at the expiration date of contract (i.e $13)
  • The good news is with this option contract, your maximum loss is limited to the premium paid for the option contract. That is it.
  • Theoretically the maximum gain is unlimited. So the price of the stock can go higher and higher. In real life, of course there will be a limit on how high the stock will go, but can be a very profitable trace for you (if it goes higher).

Let’s look at another example so everyone gets what I mean above:

Let’s say we are bullish on ABC corp and the stock is trading at $34.50 and we think it will go to $40 within the next 45 days before the expiration of an option contract. So in short, the stock is currently trading at $34.50 and our price target for the stock is $40 (within the next 45 days).

when we look at our trading system, theoretically, we shall see some option pricing listed similar to below:

ABC corp @ 34.50

image

Looking at the prices on our system, in this example, the premium for January $30 call is trading at a high premium, $40 call has no value but the best paying option for going long seems like January $35 call. So I can do the following option trade:

BUY 1 January 35 Call @ 1.25

Now let’s have a quick look at our break even point and profit\loss:image

as it can seen on the table below, any price $35 or below, there is no value in this option contract. The maximum loss will occur is only $1.25 (nothing more). But anything above $35 plus the premium we paid (35 + 1.25 = 36.25 is our breakeven point) is a profit.

The good news about option contracts is, you do not need to wait to sell (or cover) your position until after the expiration is reached. You can buy or sell anytime, if the price is going towards the direction you wanted in the first place then you can have a profitable exit within days (and sometimes even hours).

If you take the example above and reverse (if you are bearish instead of bullish and you think the price will go down) then you can go for the PUT option (instead of call option). The trade mechanics and profit/loss calculations will be identical.

Advantages and disadvantages of options trading

Advantages

  • Leverage: if you are a disciplined trader, you can use the advantage of leveraging with options
  • Risk/reward: depending on the strategy, some option strategy will enable traders to have theoretical unlimited upside with defined and limited  loss
  • Strategy plays: some strategies will allow traders to take advantage of volatility and time decay type of plays
  • Low capital requirements: you can do so much more with $1000 in options then with simply trading stocks with the same amount.

Disadvantages

  • Lower liquidity: very low volumes of trading unless they are very popular underlying stocks. For smaller traders this is not much of a problem if they are only trading 10, 20 option contracts. But if you are trading over 100 contracts then it might be difficult to get out of the trade when you want with low liquidity.
  • Higher spreads / commissions: options tend to have higher spreads because of lack of liquidity as mentioned above. Options commissions are also generally higher than simply trading stocks.
  • Options are not available for all stocks: This is one of the biggest disadvantages. Not all penny stocks have options available to them.

I hope this gives you a good idea of what options are, how to do an option trade and the main benefits & disadvantages of options trading. If you like this and found it useful then please like it or comment on Twitter so I know, and according to that I will have a part 2 write up where I will discuss best option trading strategies and how to benefit from them.

Have a nice Sunday.

MT

If you have finished reading this, you can read PART 2 HERE.

 

Why I am short Anavex Life Sciences Corp (AVXL)

Anavex Life Sciences Corp., a biopharmaceutical company, is currently engaged in the discovery (and in the future maybe development) of drugs for the treatment of Alzheimer’s disease, central nervous system diseases, and pain and various cancers. Its lead drug candidates include ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), which is in a Phase IIa clinical trial for the treatment of Alzheimer’s disease. The company’s product candidates also include ANAVEX 3-71, a drug candidate that is effective in very small doses against the major Alzheimer’s hallmarks in transgenic (3xTg-AD) mice via sigma-1 receptor activation and M1 muscarinic allosteric modulation; ANAVEX 1-41, a sigma-1 agonist for neuroprotective application; and ANAVEX 1037, ANAVEX 1079, and ANAVEX 1519 for the treatment of pain and various cancers. Anavex Life Sciences Corp. was founded in 2006 and is a US Company (headquarters in New York).

The company currently have ONLY 4 FULL-TIME STAFF. You haven’t read it wrong! It has 30.1M shares outstanding with over 28.5M shares currently floating. With today’s valuation the market cap is over $377 Million (you haven’t read that wrong either!).

Looking at the SEC filing, Mr. Christopher Missling is company’s President and also Chief Executive Officer and also Treasurer and also Company Secretary and also the Director (the man with many talents I guess!)

As a discovery stage pharma it has no revenues and its current EBITD is -$3.78M with net income available to common is -$11.4M. High burn rate with additional funding required in every stage.

One of the biggest criticism against AVXL is the company is using cherry-picked historical study of Aricept as a control biomarker. The data is extremely misleading and will (might) create problem during next phase applications. More on this can be found on the net. The stock promoters are currently doing an excellent job, almost creating a cult-like following. From experience, this never ends well.

The company has just reached an agreement with Lincoln Park Capital Fund, LLC for the sale of up to $50M of common stock over a 36-month period. The company also issued 179,598 shares to Lincoln as a commitment fee. Net proceeds will try to fund the clinical development of ANAVEX 2-73, its potential treatment for Alzheimer’s disease. Lincoln Park Capital Fund is not a stranger fund to AVXL. On 30th December 2010, Lincoln Park Capital Fund invest $1M and then 8th July 2013, Lincoln Park Capital fund once again invested a further $2.6M in a private placement and a $10M further financing commitment. As the company couldn’t deliver the expected results, they haven’t received the further investments. The latest investments is part of their ongoing deal and the company is now giving away more stock then originally agreed in the first place – Lincoln is not a new investor in the park, they are just looking forward to come out of it profitably and with the recent stock prices, they might manage to do this as well.

In the last 4 sessions, the stock managed to climb from 8.75 to almost 12.75 today. This itself doesn’t mean that it needs to come back down but such a climb without supporting fundamentals is simply wrong (at least to me!). I have started my short position at around 12.25 region and added further around 12.50s. I am currently building a short swing position so happy to add more short if the stock ends up with further gains in the short term. However, my expectation is a big red day is imminent sooner than some think…

MT

Trading IPOs – What to look for

IPO = Initial Public Offering. If the company has never issued shares to the public directly, it is known as an IPO.

I particularly like the IPO plays and made some serious money from them. I own and opeate a Venture Capital business which helped many tech companies in Europe that eventually floated them in the UK’s AIM and also ISDX markets.

So What to look for in a successful IPO:

Timing

Timing of the IPO is everything. If you have a company that sells a fantastic product but currentrly there is no market place for it then that IPO is doomed. We have seen early cloud service provider IPOs with great products that came to nothing because the time was not right. The people were not using cloud services and did not know what cloud actually is. So ‘Timing’ and market acceptance and knowledge is the key to a successful IPO.

Market Leader

Most successful IPO companies are already market leader in their sector. The niche sectors tend to be performing better. If the company is already struggling with the competition and not the market leader or shortly becoming a market leader than it will be a good short after the initial run (if there is any)

Board of Advisors, Agents and Underwriters

The companies with strong board of advisors and IPO agents tend to do better because they know how to sell their offering. Always check who the advisors are and their performance.

Market Conditions

Altough it is not always the case, if the first day of the IPO is on a bad market day, the growth of the stock can be limited. Think about the market psychology…

The First Trading Day – What to look for

The very first day of the IPO is the most raw form of the stock price. There are no historical charts to look for, there are no resistance or support values, there are no short interest (yet) – basically this is when intraday technical analysis becomes most valuable. There are number of important factors that will affect the price on the first day. The most importants are the number of shares offered to the public (float) and the valuation range of the given company. The smaller the float  the more volatile the price will be. This is a simple supply and demand equation. If an IPO is priced relatively conservatively (i.e. below or similar to other companiues from the same sector with the same size), demand could be higher, and vice versa. Based on the actual demand in the marketplace, the IPO price can also be raised or lowered in the days leading up to the offering.

One of the biggest advice I can give you is: ‘NEVER CHASE!’. Only pay for what you think its worth not the other way around.

In the first day trading, I generally look for a range to form after the initial 15-20 minutes. This enables me not to clash with the early investors (the ones that bought pre-IPO and they now might empty the tank!). So after the first 15 min, if the price is holding, it is almost always a very positive sign.

Once we have more data on the charts and range starts to form, I start to use my own technical analysis on 1 minute and 5 minute charts with extreme risk management (expect volatility).

Don’t forget, if you are chasing an IPO just for the sake of it or because of the hype, you might pay big for it. Always have a plan before going into an IPO trade (in fact in any trade) and execute your own plan and don’t let others to decide the price for you.

I hope this helps

MT

For Information: Top Ten Global IPOs (From Investopedia)

1. Alibaba Holdings Group (NYSE:BABA), a diversified online ecommerce company based in China, went public on September 18, 2014 at a whopping $21.8 billion. Four days later, underwriters exercised an option to sell more shares, bringing the total IPO to $25 billion. Although technology companies traditionally list on NASDAQ, Alibaba chose the New York Stock Exchange for its debut and used underwriting primarily from Credit Suisse.

2. ABC Bank, otherwise known as the Agricultural Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), is one of China’s five largest banks. ABC Bank went public on July 7, 2010 at an initial offering raising $19.228 billion. The follow-on greenshoe offerings from underwriter Goldman Sachs Asia brought the total to over $22 billion.

3. ICBC Bank, or Industrial and Commercial Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), went public on October 20, 2006, fetching a total of $19.092 billion. At that time, ICBC Bank was the largest mainland Chinese bank and the third large Chinese bank to go public.

4. NTT DoCoMo (NYSE:DCM), a Tokyo‑based telecommunications player, went to the public market on October 22, 1998, raising $18.099 billion. Underwritten by Goldman Sachs Asia, this IPO launched NTT to the third largest market cap for a Japanese company.

5. Visa Inc. (NYSE:V) rounds out the top five. This debit and credit card processing company entered the public market on March 18, 2008, and raised $17.864 billion—no small feat during a global financial crisis. It is the largest IPO for any U.S.‑based company.

6. AIA (OTC:AAIGF), a Hong Kong-based investment and insurance company, was offered to the public on October 21, 2010. It raised $17.816 billion and become the third Hong Kong-based financial company on this top 10 IPO list.

7. Enel S.p.A.(OTC:ENLAY) listed on the New York Stock Exchange on November 1, 1999 after it raised $16.452 billion. This Italian company competes in the gas and electric market in Europe and the Americas. It is the only utility company on the top 10 IPO list.

8. Facebook (NASDAQ:FB) was one of the most-hyped IPOs in history. It listed on May 1, 2012 and raised $16.007 billion. This social media technology company’s launch was riddled with trading issues and questionable information-sharing accusations. Nevertheless, it still became the largest technology IPO in U.S. history.

9. General Motors (NYSE:GM) debuted on November 17, 2010 after emerging from a bankruptcy filing one year earlier. This U.S.-based car manufacturer raised $15.774 billion in its initial public offering.

10. Nippon Tel (NYSE:NTT) is a Tokyo-based telecommunication provider. This is the oldest IPO on this list. The company raised $15.301 billion on February 9, 1987.

Read more: Top 10 Largest Global IPOs Of All Time (BABA,V,DCM,FB,GM,NTT,ENLAY,AAIGF) http://www.investopedia.com/articles/investing/011215/top-10-largest-global-ipos-all-time.asp#ixzz3oRwNHv7R
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A simple strategy for your trading toolset: After Hours Trading (AHT)

After Hour Trading (AHT) is one of those mystical (if not scary) words that most day traders will equate to gambling. However, there are (growing) number of players in AHT including human traders and algos.

You can see that  AHT volume in specific stocks often surges upon the occurrence of market-moving events, such as earnings reports, pre-earnings announcements or M&A activity or sector specific news (such as shipping rate changes, etc.)

Let me make this clear, I do not do too much AHT trading however, I certainly do quite a few trades (mostly successful ones) during earnings seasons. I specifically like after hours earning announcements and I listen to their conference calls however most companies publish their results just before the conference calls on their websites (or file a SEC report before the call).

My AHT trading strategy is extremely simple. I only play longs for positive earnings. I also like the stocks which generally have a good volume day time (the same day as the earnings announcement). After the positive earnings have been announced the price of the stock generally spikes (I call this the first wave) and then it normalizes (generally within a few minutes). This is when I buy it. It is then very likely to spike once again (I call this the second wave) when more people hear or read about the earnings news. Generally it can take about 15-20min between first and second wave (can be longer or shorter). I then sell my positions near first wave highs and call it a trade! I don’t like keeping it overnight (nothing wrong with doing so) but I find it risky. If I play, make money and get out, that is the way I like it.

Please note, I go for a LONG play ONLY if the earnings beat the estimate at least with 10% or more. If not, I simply leave the stock alone and don’t go for a trade. I am extremely selective with AHT trades – the way it should be. Finding the stocks to fit with the above criteria could be somewhat challenging (and time wasting) but it is better to waste your time then your money!

Please note, after-hours trading is busiest in the first hour or two after markets close, before disappearing sharply. As financial markets become increasingly integrated with the advent of globalization, I expect the after-hours trading is likely to expand going forward. Watch this space.

I hope it helps.

MT

PS: Zacks is a very good source that I use to see earnings calendar, estimates, etc. There are tons of other free websites where you can find all earnings related information.