Here’s why you should never ever trade the extension when trading online


Hi all this is Adam Collingwood again and
the screen you are looking at at the moment is ASOS. If you don’t know who ASOS are they
are a ftse 350 company and if you just read this here ASOS is a global online fashion
and beauty retailer and offers over 50000 branded and own label product lines across
women’s wear menswear accessories jewellery and beauty . Now you can see on the left here
there has been massive growth ASOS share price absolutely flew up . I’m just going to go
to the graph here so you can have a look . So if you had bought in here which was about
1818 you can see that it flew up and you would have done fantastically well if you bought
in on ASOS in July August time of 2012. It absolutely flew up massive massive growth
there was a real buying spurt for ASOS. Now since here where it reached its high of 71
its just started to fall you can see by how much . I mean we are looking at the moment
of a current close of 20 . So you can see what can happen to a company share price in
a very short amount of time . So what I want to do is just show you what’s been going on
recently with ASOS and show you what can potentially happen in a market such as this one and the
monsters over the hill that you need to be aware of .So we are going to zoom in now and
I want to show you what happened on this particular date . Okay I am just going to move this box
down here so we can see this more clearly . So you can see here which was June of 2014
so this year . Its hit the magic blue line and then there is a big gap there so it was
a cliff jumper and then its come down and continued its trend downwards and came back
up to our magic blue line hit the trend line there and has come down again. But what I
am interested in and this is what I want to talk to you about is what happened on this
particular date . So lets just click here and see what happened and why there was this
big buying momentum . If we just scroll down here it will say why . Now here we are back
in April the shares in online retailer ASOS soared to close the session over 19% higher
. So a massive movement upwards driven by media reports that the company , remember
this media reports,media reports that the company has become a takeover target . There
was a couple of companies that were saying that they were interested in ASOS including
E Bay . Several news outlets report that this major Danish share holding had been approached
by a US bidder for its stake in the company . So the share price just on that alone it
went up by 19% . So you can see here where its was at a close there of 2182 it shot right
up there to 28 and the truth is it was just a load of BS . When the media release news
that there potentially could be a takeover , you need to remember that its just potential
. All they did was they were saying” well yeah we might be interested in them” but that
doesn’t mean anything . I could be interested in buying a particular company and then changing
my mind so what would happen to the share price then ? probably not very much because
I(laugh) wouldn’t have the multi billions to be buying millions many millions that you
would need to buy ASOS . But you know what I am actually getting at its just a “well
we are interested in them … ” when actually its just a rumour and this is what happens
when you get spin and so people on this day this is where I keep pointing here on the
27th August the share price absolutely shot up so there was big buying frenzy and then
it just consolidated for a little while and then since then its just fallen . And that’s
because the company is not in a very good position at the moment its not in a strong
position at all . So all this fluff about them getting this possible takeover that pushes
this price up but then reality then sets in that the company is not doing well at all
and so its continues its momentum South .
So in summary all this was was PR and that’s what can happen to the market on this particular
day you can that it shot up by 19% and now its just fallen again and we are looking at
the moment at a close today of 1974 which I wont be shorting ASOS because its already
dropped too dangerous to touch that at the moment , but I will be watching what happens
with interest but as you can see the momentum really is downward . I am just going to put
this on a weekly chart now so you can see this a little bit better . So that’s the weekly
chart so you can see here what its done , yeah its looking a little bit dicey ASOS at the
moment . So my advice is to leave well alone the purpose of this video is just to simply
explain that there are monsters over the hill that you need to be aware of and this is one
of them .The reason for this video is I do know some people who did buy in to ASOS on
the expectation that things were going to happen that there was going to be a takeover
and they were going to be getting in at this particular point here and then they got hurt
and that’s what can happen . So you just need to be wary of what can come out in the press
and get caught up in all the noise and the nonsense . Actually I have just switched to
another screen here so you can see how ASOS has done this year . So from its high which
is $70.50 so its fallen by 72% so one of the biggest fallers actually over the last 12
months so lets just flick to , yeah yeah it was the biggest faller so far there are a
few in the 60 s there that have fallen from their highs one of them being New Skin Enterprises
so you can see with some shares how they can really yes certainly this one New Skin Enterprises
, now we are getting off onto something else now but as you can see here New Skin Enterprises
is one that absolutely flew up reached its high here which was in January 2014 and then
its just fallen off a cliff since then it really has , massive fall there but that’s
all very useful to see this column here that I put onto ,into the software that I use I
want to know what companies are falling and how dramatically they are falling from recent
highs as well as companies that have shot up from recent lows . Okay so I hope you enjoyed
that video and again as I said before its just to explain what can happen when the press
release news and what the reaction can be and its just all I am saying is don’t buy
in to it just don’t buy in to it . Some people are saying oh we missed out on that increase
don’t buy in to it all it doesn’t matter it was just pure spin and anyone who did buy
in to it have lost money they have lost money its as simple as that and if you don’t want
to lose money then don’t buy in to the noise . So that’s me and I look forward to speaking
to you all again soon and good luck with your trading . Thanks

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