Marshall--I only discovered this methadology two weeks ago, in large part by analyzing what happened with KOOP, other IPOs around that time and from my experience buying and selling Packeteer and Net2PHone, both for sound profits. Seems to be working well.
Of other IPOs I've played, I sold within a point and a half spread my entire positions in QUOT and HOMS. Unfortunately, I had to sell entirely my IIJI (at a 4 1/2 point profit) due to a quirk in my buying power--I foolishly confused my cash position on a short-term margin oil driller play.
Meanwhile, I've built a portfolio of small holdings consisting of 20 percent leftovers from PKTR, NTOP, WGRD and CIGE. I've also been shaving about 10 percent of my profits into a couple of prospective $5-10 stocks, gradually building up strong positions there. I can tell I dumped the dogs because they went red today. And except for NTOP, which is shorter infested, all the others went green today.
Using this strategy I've lost more money paying exhobitant Schwab trading fees than I have in the bad market. Something wrong there--I've got to get a cheaper trader!
Overall, I think it's a great trading strategy. You end up being a little bit of a day trader while simultaneously holding long positions from most (the good oens) of the IPO stocks visited. You're not locked into 60-day hold cycles and if you limit losses to only a point and a half to two points, but take your gains at three to 10 points, it's hard to lose.
In closing, I heartily recommend this strategy. In effect, I've become an Open Market IPO Trader (OMITer?--to coin a new term!--LOL) The only tedious part is continously having to hit the quote button waiting for the IPO curtain call. But, being down there with the little people, I'm more than obliged to do that for an hour a day if it means making $500 to a thousand bucks. If I continue this prudent course, I'll do very well down the road.
Good luck to all! |
