Fall in US Stocks Resulting from Google’s 8% Drop Creates Frenzy for Share Trading Answers, Says Coach of Free Trading Systems

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Bloomberg News announced the U.S. stock market plummeted after Google’s profit and sales fell short of estimates today, dragging technology shares down with them. The report was filed prematurely and halted Google share trading for over two hours. “This recent market drop has created some serious havoc in my inbox,” says David Jenyns, trader & coach of Free Trading Systems, “new and professional traders alike are contacting me, wanting to know what to do and what systems to use.”

Free Trading Systems

The whole Google premature report and stock halt has been a great, yet terrifying, lesson for traders

The market stopped breathing momentarily when Google’s shares were placed in a trade halt as a result of their profit and sales report being prematurely released, as stated by Bloomberg News on 19 October 2012. The drop in the market created a frenzy of trade-related questions at http://www.freetradingsystems.org, whose coach, David Jenyns, struggled to keep up with the enquiries.

Google’s stock fell amidst the past three day’s advancement in the S&P 500 index and clearly stopped its bullish movement for an entire day.

“I couldn’t believe my inbox when I came into work,” says David Jenyns, professional trader and coach, “I had both new and professional traders asking me two recurring questions, the first being what to do when a trade goes against you or is halted, and the second being how to trade a falling market.”

Google’s 8% share drop was also assisted by the earnings report being inadvertently released during trading hours, which caused the S&P 500’s technology group of shares to sharply decline.

“This sort of instant decline wreaks havoc on the marketplace. People get scared and for those who haven’t planned, it’s pretty dire,” states David, “I’ve always told my students and clients that you must have tried & true trading systems in place.”

“There are a lot of trading plan templates out there,” continues Dave, “but most of them only focus on entry and profits, and leave out the important pre-trade planning that’s required for long term success.”

Since Google’s earnings report fell short of expectations, and was released during trading hours, their stock was halted at 12.50pm New York time and didn’t resume again until 3.20pm.

“During the Google stock halt is when I noticed the biggest influx of queries,” remarks David, “and there’s little anyone can do once a stock is put on hold. I spent most of that time educating traders in the importance of having an emergency plan as part of your trading system. Just like how a building has an evacuation plan, traders need the same thing.”

“During this time, I also had significant interest on how to trade falling markets,” says David, “like how to buy put options, sell futures, or short the market.”

David continues, “The whole Google premature report and stock halt has been a great, yet terrifying, lesson for traders. It emphasizes the importance of implementing the right systems into your trading plan, and having an exit strategy for every situation.”

To find out more about David’s trading coaching, click here.

About Free Trading Systems

Professional trader, coach and author David Jenyns created the Free Trading Systems site to help both new and experienced traders employ the right steps and trading systems charting software to become successful in the stock market. David believes his success is partially owed to ‘paying it forward,’ therefore provides this detailed trading system information completely free for his students.

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