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Announcements

This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.

 



I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program

 



Additionally, you can now get access to what I consider to be the best stock options daily trade alert service.

 



Of course, I am biased and with a success rate fluctuating between 68.2% and 72.4% it is hard not to be biased.

 



If you do want to follow along with what I am doing every day you can get access to my daily stock market report 

 

 

You can read the step-by-step Bollinger Band Trading Strategy Guide - this is my main active trading strategy



Until next time


happy trading 


Mr Phil Newton or on LinkedIn Phil Newton trader

Secondary Stock Offerings

Joe_Ross's picture
Hey Joe! Can you explain to me what a secondary stock offering is? Secondary offerings can be used as a stock market indicator similar to "insider selling." It occurs when traders that have the most knowledge about a stock sell it to those with the least amount of knowledge. These offerings are made by large shareholders or groups of shareholders, who no longer want to own their stock and are seeking to raise money. Perhaps the company's credit is over-extended and they can not borrow against it. The secondary offerings take money from the public diluting funds that may have been spent on other stock. More stock supply decreases a company's share value, and the overall market. Large amounts of secondary offerings are generally bearish to the overall markets. Another market top indicator is a widely publicized take over war. Two companies engage in a bidding war and their share values rapidly increase in price, as does the object stock of their bidding. This usually results in the winning bidder over-paying for the prize, and an over-valued market due a bidding war. Short sell the winner's shares when the deal is done, the loser and market may soon follow.