@CTUCyberGroup Lesson: HALTED! #CTU #Aftermarket
Today was had another great Friday in the Cyber Trading Live Trading Room. The big winner was the stock $GNK, up by 10am nearly 100% going from $1.50 all the way to a little over $2.80! I would say that 90% of the chat room made great money on this stock and was out by 10am! Talk about a short work day.
Something interesting happen right before 10am that a lot of the students expressed they haven’t seen before. The stock was halted! One of the big questions that came up is why. There are usually two main reasons for a stock to stop trading. The first is volume. Sometimes when a stock trades so much volume, so fast, it’s almost like a switch that gets hit and stops the trading. The exchange just cannot handle that many shares in such a short period of time. The second reason is pending news. Sometimes because of a rumor or the upcoming announcement of a big news story, the stock will stop trading so that they can reevaluate the price of a stock before they allow it to resume trading. Another great questions was, “what can we do?” Unfortunately at that point the only thing to do is pray you’re on the right side. After a stock is halted there’s usually an increase of volatility so be careful.