In the financial market, it does not matter how much you like an idea unless the market likes the idea. But when the market likes the idea i.e. when the price action is supportive, then it pays to have conviction. The conviction means the ability to sit tight with the stock as long as possible and not rush in to book profit. That’s how the big gains are made.
Case Study: Roku
I like Roku pic.twitter.com/j3gbInFcny
— Deepak Singh (@smarket) April 21, 2018
I LOVE ROKU. This should not come as a news to my twitter followers.
Roku is the best streaming product and has a pretty interesting business model. It's offering a platform for new players to offer content…solid advertising revenue
— Deepak Singh (@smarket) January 19, 2018
Start of 2018: I was waiting for Roku to come down to attractive levels so that I can buy.
Business model of Roku is very powerful. It's a hardware that provides platform for new content and makes money by advertising.
The new world order….Bullish on Roku on declines— Deepak Singh (@smarket) January 26, 2018
The it happened – Roku came down to very attractive levels.
Roku has come down to very attractive levels. It is a play on Cord cutting revolution. pic.twitter.com/VlHjkhNGdO
— Deepak Singh (@smarket) March 21, 2018
And then started coming all the Bullish news – Good Price Action which only strengthened my conviction.
Now Roku has bounced big to $37
Here's fundamental take: "ROKU should have an enterprise value of $10-11 billion vs. $3.5 billion today"
Yeah why I follow Charts…it tells you about good fundamentals early https://t.co/FqpoeppRVt— Deepak Singh (@smarket) May 25, 2018
Roku then come out with earnings report the stock made a big move.
And as of writing this post – there is where Roku stands as of today
It’s up more than 100% now
I hope you understand the point I am trying to make
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers