Charles Schwab, along with a few other brokerages have decided to offer free commission trading in order to compete with brokers like Robinhood. After this news release today their stock price took a dive. Typically when stocks/companies like this, that are established companies and have been around a while take a dive due to something like this, they have a higher probability of returning to their original highs. Though nothing in the market is 100%, I personally have had higher success investing in companies that are solid but have had negative news impact their share price. One of the most recent stocks that show a great example of this, though the drop was more significant, Equifax (EFX) had a really huge dive after they suffered a massive data breach. Let’s have a look at their chart and how they recovered.
The circle around that huge drop is approximately when the news came out about the data breach. The stock price dropped from the $140’s all the way below $100 dollars. The price has since recovered and is currently trading at $138.27 cents, and in fact had traded above the last high.
If you are learning to invest, but don’t have the time to Day Trade then I would suggest trying to find and execute trades like this. This type of investing requires a lot of patience but can be very profitable when building a portfolio.