Wednesday, September 18, 2013

How Could the Market Order Harm Investors



We just want to emphasize the risk of market order.  When the darling of Wall Street stock, Facebook, finally debuted on 5/18/2012, many investors were afraid of missing the boat, and jumped in the stock at opening by placing market orders.  However, the stock plummeted since then! It took almost 14 months to recoup the loss, and break even. 

During the same time period, the NASDAQ gained 30%.  You can make observations from the next chart.

 

            Thanks for your visiting and reading.

           Have a nice day!


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