Roblox is a popular video game platform which is considered a game on the emerging metaverse. After soaring more than 40% in the latest quarterly earnings report, is Roblox stock a buy in the current stock market rally? And is Roblox stock worth buying? You are able to find out that answer here.
Is Roblox Stock Worth Buying?
Roblox stock is one of the top metaverse stocks to consider in the current stock market rally. This video game platform boasts big sales growth in recent quarters amid the company’s potential in the emerging metaverse investing theme.
Now, shares are pulling back sharply during a struggling stock market rally. Amid the stock market volatility right now and Roblox’s precipitous drop, the stock is actually not a buy right now. For this case, you should wait for the stock to form a new base that would offer a new buy point.
You will be able to check out IBD Stock Lists and other IBD content to discover dozens more of the best stocks to buy or watch. Aside from that, be sure to read IBD’s The Big Picture column each day to ensure growth investors have a green light.
How to Buy Roblox Stock?
Here are some steps to buy Roblox Stock:
Step 1: Pick a broker
To access the market and trade Roblox stock, you will need to open and fund an account with a broker. Here are some things that you need to look for when selecting a trading platform:
- Commission-free trading
Lots of brokers have already migrated towards a zero-commission model to compete with mobile investment apps.
- Fractional share trading
Several stocks are more expensive than others. Fractional shares are going to give you exposure to price action while giving you the flexibility to diversify your own holdings and de-risk.
- Low account fees
Actually, Broker fees eat into your profits. You are able to compare the fee schedules from your shortlist of brokers to get the best deal.
- Margin trading
Margin can be extended to you at some brokers to assist you grow your account quickly. But, if the price drops, you may need to post maintenance margin to cover the loss on the loan.
- Real-time data and the charts
Most trading platforms do not come with live market data. You have to check the subscription costs for real-time market data.
- Commission-free trading
Step 2: Fund your trading account
Bank transfers and debit cards are accepted ways to fund your account. Some brokers accept credit cards. When you fund a new broker account, it will take a little longer for those funds to clear since the broker may have to carry out additional verification checks. But, subsequent deposits usually clear much faster. It is important to keep this in mind if you want to make a time-sensitive trade.
Step 3: Decide your investment amount
Deciding on your risk is the most crucial part of establishing your trading strategy and trading plan. Just risk money that you are able to afford to lose. In fact, most seasoned day traders agree that placing more than 5% of your total account balance in a single trade is a bad opinion. So, avoid putting all of your account into a single trade, no matter how confident you are.
Step 4: Select between a share of stock or ETFs
You are able to select between buying Roblox stock outright or buying an ETF. An exchange-traded fund is a financial vehicle which consists of a weighted basket of stocks in a sector or geography. It can be traded much like you would an individual company’s stock. An ETF with exposure to Roblox include Roundhill Ball Metaverse ETF (META), Vanguard Mega Cap Growth ETF (MGK), and ARK Next Generation Internet ETF (ARKW) will give you exposure to price action for Roblox while distributing your risk across the performance of some companies.
Step 5: Set up your order
After funds have cleared into your account and you have decided what you want to invest in, it is time to place an order. You are able to configure it in line with your desired outcome.
- Limit order
The limit order is a great method to offset slippage in your own trading by entering the maximum price you are willing to pay. The broker will not execute at any price above this limit. As a result, you will never get slippage on your orders. But, in fast-moving markets, the broker can only partially fill your order due to price volatility.
- Stop limit
This order kind is another automated tool for cashing out with your profits when you hit your price target. For instance, you purchase Roblox at $50 and set your stop limit for $75. When the price reaches this level, automatically the broker triggers the sell order.
- Stop loss
If you are a new trader, this order kind may prevent you from incurring a substantial loss by selling out of your position if the share drops to a specified price.
- Limit order
Step 6: Place the order
After settling on the right order kind to manage your trade, it is time to execute your trading plan. If you open your trading platform, you are going to see fields you need to complete before placing your order. Please enter the ticker symbol (RBLX). After that, complete the other remaining fields with your share size and the limit order price you want to pay for the stock. Next, click the buy button. The broker will execute your order.
Step 7: Monitor how Roblox performs
Roblox is one of the leading names in the emerging metaverse economy. Watch for press releases, company announcements, and earnings reports for the price volatility and trading opportunities. Because Roblox is distributed through App Stores, it is worth tracking news for Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG), mainly given their control of the distribution channel. Also, Facebook (NASDAQ: FB) is investing heavily in the metaverse, just look out for announcements from them that may lead to more interest in the space.
On my daily job, I am a software engineer, programmer & computer technician. My passion is assembling PC hardware, studying Operating System and all things related to computers technology. I also love to make short films for YouTube as a producer. More at about me…
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