[video] Quick Take: Catching Twitter Stock
NEW YORK (TheStreet) -- Twitter will make its public debut on Thursday and Wall Street is widely anticipating the event. But with the unlikelihood of retail investors being assigned any shares before trading begins, what's the best way for small-time traders to get involved?
TheStreet's Debra Borchardt is with Donovan Lazar, general manager of the Online Trading Academy, who had one piece of simple advice: Avoid Twitter.
The company is expected to trade under the ticker symbol "TWTR" with an offering size of $1.6 billion and have shares priced between $23 to $25. However, once trading begins, it's going to filled with erratic volatility due to fear and greed, Lazar said.
He admitted that volatility made for a good trading environment, but warned that erratic volatility did not.
Instead of buying on the opening day, Lazar suggested that investors wait for the stock to settle down a bit, and find the supply and demand levels where institutions are buying and selling.
He reminded investors not to confuse supply and demand levels with the support and resistance levels found in technical analysis.Many times, a company will do a secondary offering roughly six months after the IPO, a time that Lazar said would be a much better opportunity for retail investors to step in. He concluded that Twitter needs to find a better way to monetize its platform, and suggested that it would likely happen through an acquisition. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV