Workiva: #PowerStocks Series Pick Of The Week (January 2025)

Happy New Year in advance! Where are you planning to usher in the New Year? In the past, when I was much younger, I would visit Orchard Road and Marina Bay to soak in the atmosphere and take photos. Yes, I was a reveler. These days, I enjoy spending time in a cozier setting. A cozy setting helps me relax and reflect as the world spins by. Shall we review the stock picks shared in December

1. Cloudflare: No entry
2. Deckers Outdoor: Gain of 4.1%
3. Royal Caribbean: No entry
4. Global-E Online: No entry

December has had its challenges. On 18 Dec 2024, the S&P 500 saw a 3% decline following the Fed's announcement about the reduction of rate cuts in 2025. As it stands, December could end in the red, down 1.25% at the point of penning my thoughts. Despite this bearish environment, the shares of Cloudflare and Deckers Outdoor were extremely bullish. Cloudflare's shares took off without the deeper pullback I was expecting. On the other hand, Deckers Outdoor's share behaved as expected, bringing me a return of 4.1%. In my Telegram Channel, I've shared the reasons for scrapping my trading plans for Royal Caribbean and Global-E Online. Before I share my thoughts on this week's #PowerStocks pick, let's review last week's: Global-E Online (GLBE).

Review Of Last Week's Pick Of The Week

Global-E Online (GLBE) was last week's stock pick. As the company provides cross-border e-commerce solutions, it belongs to the internet retail industry. I've been watching and waiting for its share price to return to $52 before buying for an explosive swing trade. Watching a complex pullback develop, I've decided to drop this stock. A stock with a simple pullback is more predictable to trade, providing a higher chance of success. I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

To protect you from scams, please note that my team and I WILL NEVER solicit for any investment. 

A list of our official communication channels can be found here. 

Why Is Swing Trading Workiva (WK) Worth It?

Source: workiva.com

Workiva is a technology company that offers cloud-based compliance and regulatory reporting solutions for the energy and finance industries. Compliance is necessary as the world grows its reliance on cloud technology for convenience and cost efficiency. This is evident in its shares performance, especially in the past 3 months. While the S&P 500 had risen by 4%, Workiva's share price had risen a remarkable 38%! That's a stunning 9.5 higher return! Because buying on the pullback is safer in this volatile market environment, I'd like its shares to pull back more. Which price area am I waiting for? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Workiva (WK)

Let's begin by identifying the price trend of Workiva's shares. Workiva's share price had been flat until early November, when it had burst into a powerful uptrend. To increase my chance of profitability, I will not fight this uptrend. Instead, I will look for an opportunity to buy its shares for an explosive swing trade. I'm curious whether its shares might have the potential to outperform the S&P 500, as that could lead to a really exciting return for me! So, I'm going to compare the performance of Workiva's shares against the S&P 500 for the last 3 months. Here's my finding: The S&P 500 had risen 4% in the past 3 months while Workiva's shares had soared 38%! That's an outrageous 9.5x outperformance! Now, this is a stock I will want to analyze deeper.

How Explosive Is Workiva (WK)?

Is Workiva's share price movement explosive enough to warrant a swing trade? I've marked out 17 explosive up moves in the past 11 months. Are they impressive? For a $6b company, the upmoves measuring between 4.9% and 22.4% are breathtaking! Here's a little insight: the shares of companies with a market capitalization of several billion can be difficult to manipulate, offering an extra layer of security to my trading. As such, I have my eyes set on the shares of Workiva. However, should I be buying its shares for an explosive swing trade now?

Key Price Levels

Enter key price levels, also commonly known as support and resistance. Support and resistance are demand and supply zones where a company's share price will likely turn. I've spotted a support zone at around $105. Can you guess my game plan from here? Yes, I'll be patiently waiting for the share price of Workiva to pull back to around $105 and bounce before buying its shares for an explosive swing trade. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!