Quick Take: Catching Twitter Stock

Originally released on The Street, November 6, 2013.

Twitter will make its public debut on Thursday and Wall Street is widely anticipating the event. But with the unlikelihood of retail investors being assigned any shares before trading begins, what's the best way for small-time traders to get involved?

The Street's Debra Borchardt is with Donovan Lazar, general manager of the Online Trading Academy, who had one piece of simple advice: Avoid Twitter.

The company is expected to trade under the ticker symbol "TWTR" with an offering size of $1.6 billion and have shares priced between $23 to $25. However, once trading begins, it's going to filled with erratic volatility due to fear and greed, Lazar said.

He admitted that volatility made for a good trading environment, but warned that erratic volatility did not.

Instead of buying on the opening day, Lazar suggested that investors wait for the stock to settle down a bit, and find the supply and demand levels where institutions are buying and selling.

He reminded investors not to confuse supply and demand levels with the support and resistance levels found in technical analysis.

Many times, a company will do a secondary offering roughly six months after the IPO, a time that Lazar said would be a much better opportunity for retail investors to step in.

He concluded that Twitter needs to find a better way to monetize its platform, and suggested that it would likely happen through an acquisition.

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