Market (over)reaction vs.Buying/ Selling stocks

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Guys, Let’s talk “strategy” today.
As you may know market – aka- investors in the market always overreact to news. Such reactions in times result in overbuying or overselling. Overbuying increases the share price, overselling decreases the share price. An intelligent investor can use both these situations to make a ton of money.

Let me explain with some examples:
When a company announces a second offering, that prices the shares below the current trading price, the market reacts negatively. People sell their positions out of FOMO. New investors get trapped. Day traders close their position in loss. Selling pressure increases immensely.
An offering is not always a bad thing. A company can use the money raised from a second offering for expanding its business. The share price of good companies always bounces back. Let me explain with an example.

From January to March, an isralien company issued shares more than 7 times. Every time market reacted as expected. 20% to 40% down run at each offering. But right after the offering day, the market recovered fully and surpassed the previous all-time high price.

I had observed this pattern and made a lot of money doing swing trades.

Short interest reports
These are other classical examples. $BLNK fell over 69% on a short interest report back in December. We bought Blink for $5. It went up to $50.

Share split
This is a really interesting phenomenon. If a company announces a share split, till the nominated date, the share price increases for no reason.
Recent examples- Apple and Tesla share price went up by 20% & 12% respectively upon the split announcement.
The interesting thing is, right after the day of the split, all the gain vanished before the stock could get settled.
Again intelligent investors can use this for a quick swing and make money using before and after split price action.

Two companies have announced share split currently
1) $TTD

These are two great options. Please do some research on this. We can make a good fortune.

In summary, for any reason, if the market reacts overtly, look for your opportunity. If you are in this community, you shouldn’t be a victim of market reaction rather you should be on the other side of the fence doing a swing play 

YouTube Livestream
Last night we had a good live session. We talked about many stocks and strategies. You can watch our live stream by clicking the above-given link. Today again we will go live at 9.00 pm UK time, right at the market closing bell. So please join me. We will have fun.

Finally, Team project plus one,
I have posted my today’s playlist and possible moves in our discord room. Please read. We will update the post with graphs and more data on our website for Project Plus One members later today. Hope you will find it useful.

By the way, if you are a Project Plus One subscriber, and if you cannot still see my trade alerts rooms and announcements in the discord, please do contact me. I will help you with that.

A lot of Silver and Gold members have enquired about access to Project Plus One recently. If you would like to upgrade, please do so on the patreon page under My Membership or reach out to us on our Discord and we could help you further.

Our patron page

Our discord

The followings are the two examples screenshoted from project plus one discord rooms.

That’s all from me.
Goodluck and play safe.

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Dear newbies,

I would like to interact with you more. I think this is the time for that.