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.
Facebook, Inc. (FB) vs. the NASDAQ from 5/18/2012 to 8/7/2013.
Source: Line Graph Outline form Yahoo Finance. Actual data compiled by bloggers.
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