There are different types of stocks available in the market. Some stocks are perfect for value investors, while others are good for day traders.
You need to choose the type of stock you need to invest in as per your trading style. If you prefer buying and selling the stocks on the same day, it is better to invest in volatile and penny stocks.
However, if you like to buy shares and hold them for a long time, it is best to invest in stocks on blue-chip companies.
NAKD stock has been in a lot of controversies lately. It is a penny stock. However, it is not advisable for all types of traders to invest in this stock.
The stock is up by 247% in a year. While the figure might attract many investors, not all will be able to make a profit from it.
NAKD Stock for Day Traders:
A day trader is a person who buys as well as sell the stocks on the same day. They don’t hold the shares. Most of the day, traders make a profit on volatile shares. They have to trade in huge volume and take advantage of the rise and fall in shares.
NASDAQ NAKD at https://www.webull.com/quote/nasdaq-nakd is perfect for day traders. In facts, most of the day, traders have been quite happy with the profitability and volatility of this stock. When the news about the company switching to an e-commerce platform reached the investors, they purchased the stock in huge volume.
It leads to an increase in the stock price of NASDAQ NAKD. The company was on the verge of bankruptcy but was saved by retail investors and day traders.
However, day traders were not the only ones who invested in this stock. Many value investors have also purchased the stock of this company.
When the day traders sold the stock for profit, the value of the stock went down to $0.05. While day traders were happy, it was not a good sign for value investors.
NAKD Stock for Value Investors:
These investors buy the shares at a lower price and hold them for a long time. They don’t sell immediately but wait for the stock value to go up in the future.
When Naked Brand made accouchement about the e-commerce chain and the appointment of a new CFO, most of the vale investors saw the opportunity.
They took advantage of this opportunity to invest in NASDAQ NAKD stock. However, it hasn’t been fruitful for them. As the value of the shares declined and kept on declining, vale investors lost hope in the stock. However, with the latest transformation, it might be possible for the company to become profitable in the future. So, it might be a good thing for value investors as well. If you want to invest in stocks, you can check other stock like nyse pltr at https://www.webull.com/quote/nyse-pltr.