Plus, 2 ways to trade stock splits â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â Good Morning! Did you catch the latest winning [Breaking News Chat]( alert? After hours on Wednesday, the team alerted Amazon.com, Inc.âs (NASDAQ: [AMZN]( 20-for-1 stock split. The stock soared 10% after the news â a big move for a large-cap stock. Why did the news create such a spike in a ârealâ stock? And is there a trade opportunity for YOU? Read on to learn what they are, why stock splits are good news for traders, and how you can potentially capitalize on the opportunity⦠Get the best breaking news stories sent to you in real time â [test drive Breaking News Chat today!]( First Things First Hereâs a brief lesson in stock splits⦠A stock split increases the number of a companyâs [outstanding shares]( and lowers the price of each share. The [market cap]( doesnât change. A company does a stock split for many reasons. It may want to: - Increase [liquidity](
- Join a price-weighted index like the [Dow Jones Industrial Average](
- Attract more buyers
- Show that [the companyâs growing]( (Click the links in the bullets above to see how more than one applies to Amazon.) But what does a stock split mean for YOU? Why Traders Care About Stock Splits Stocks can run BIG on stock split news. Itâs a market dynamic where traders look to the past. History doesnât repeat, but it often rhymes... And if the market believes stock splits cause stocks to rally â then stocks rally. Look at these past stock splits and the moves that followed: - Apple Inc. (NASDAQ: [AAPL]( announced a [4-for-1 stock split]( on July 30, 2020. The next day the stock gapped up, broke out to new all-time highs, and gained 34% within a month.
- Tesla, Inc. (NASDAQ: [TSLA]( also took advantage of the 2020 hot market. On August 11, 2020, the company announced a [5-for-1 stock split](. The stock soared 69% from the day of the announcement to the August 31 effective date.
- Last May, NVIDIA Corporation (NASDAQ: [NVDA]( announced its first stock split in almost 20 years. Again the stock gapped up on the announcement. It soared 38% in the month following the 4-for-1 [split announcement](. Will AMZN follow the historic trend? Well, there are a few more intricacies that make Amazonâs stock split announcement even more interesting. First, the company announced a $10 billion [share buyback]( to add more fuel to the frenzied fire⦠And second, the split announcement is getting attention in chat rooms. AMZN had the most positive sentiment on Redditâs WallStreetBets yesterday, according to [SwaggyStocks](. [SwaggyStocks]( And itâs becoming a meme [circulating on Twitter](. Could AMZN become the next [meme stonk]( Maybe⦠The stock split will lower the price and make it more accessible to traders with smaller accounts. That can mean more volume, liquidity, and volatility⦠And it can make some of these ârealâ companies trade like penny stocks. How can you trade higher-priced stocks with split news like AMZN? Two ways: If you have a large account, you could buy a few shares and try to ride up the hype around the split. But make sure you have a trading plan with a stop. If you have a smaller account, wait until the stock splits. Then use the rule of 10 to plan a trade. [Learn more about the rule of 10 and the benefits of trading higher-priced stocks here](. And get the [Breaking News Chat]( so youâre alerted next time hard-hitting news drops. Not sure how to interpret the news? Iâll help you break it down and teach you how to trade it in the [SteadyTrade Team]( See you back here on Money Monday. Tim Bohen Lead Trainer, StocksToTrade sponsored [CAUGHT ON CAMERA: Bohen and Sykes Shock Everyone]( You wonât believe what Bohen and Sykes did. This could radically boost your trading by Monday. [Click here now to see this.]( sponsored Get market news before the mainstream guys hear about it⦠[âA Stock Chatroom Where Two Ex-Hedge Fund Traders Spoon-feed You Wall Street Rumors & News Alertsâ¦â]( The StocksToTrade âBreaking Newsâ chatroom shows you [new trade ideas each day]( (before the mainstream news guys even wake up). If you want to get stock market news first â [click here to see all the details](. Recommended Membership Gifts ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Stock Market Safety Course By Millionaire Trader Tim Sykes]( [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. Copyright © StocksToTrade.com