Fast Cash

Here's a quick little Friday fact. Investing on special events is a good way to make some quick cash; and when I say quick cash Im talking maybe a few hundred bucks in a day, depending on what kind of capital you're willing to risk. What I'm referring to when I speak of special events are high impact economic reports and IPOs. Yes, I know, these two are in completely separate markets but hear me out. On average and more times than not, IPOs are usually pleasurable experiences. They tend to be good opportunities for value investors to get in to a stock without having to worry about when the best price was. Instead they know that they are one of a hand full that will be buying that stock first on the open market. This, for the most part nudges the price up as all the investors and traders try to get into the stock first before the life of that stock takes off. For making a few quick bucks this is great. With enough capital you can make some serious cash. I've found 3 particular IPOs that I randomly selected from the history of IPO's only going back 1 quarter. We'll use a theoretical trading account with a $2000.00 balance and $20 round-trip brokerage fee(e-trade's fee). Infoblox (BLOX), April 20, 2012, opened at $16/share and closed the same day at $21.63/share. Now if you would have just put half of your account into this trade, minus the fees you would have made around $328.36 profit! Another company by the name of Splunk Inc. (SPLK) had an IPO April 19 of this year and opened at $17 and closed at $35.48. That type of gain would have profited you $1056.18. Wage Works Inc. had their IPO May 10th with an opening price of $9.99 and an end of day ticker price of $12.60. If you would have bought 150 shares of that stock, then sold end of day, after fees you're looking at a $371.50 profit. No these all sound great but I want to move over to another market so I can really stress how valuable eventful days are. In the Forex market I look for opportunities for fast money...it's risky money, but that's to be expected. When we are talking about event days in the forex market it's usually a government issued high impact economic report that is being released or a series of them. Just today, at 4:41am US Eastern time 8:41am UK time, Great Britain  released their Total Business Investment report, their Index of Services report, and their revised GDP. As the news was less than pleasant, the GBP--(Great British Pound) was chopped down enough to make good money for a few hours...Nothing spectacular but still enough to be counted. Maybe these two quick examples of fast cash will come in handy for you one day, if not oh well. Keep your mind happy and keep remembering that today is friday and no one will remember what you say today and vice versa.