To register for an IPO an then sell on the first day of trading (or second, if the stock went up a lot and keeps going up) seems to me a feasible strategy, especially in a raging bull market... I’ve seen some pretty staggering results from people who have tried it. Thus far quite satisfactory for me too.
At the moment, it’s not unusual for a stock to have a double digit first day — happen to me the other day, stock went up 50 % even though I sold way to early in the day — then it almost doubling again... Now it’s almost back to where I sold. Will buy if it goes substantially under.
Cause that’s the thing with IPOs, there’s a real S-shape to the curve of most of them the first two weeks or so. Massive peak first few (1-3, most often) days, then a pretty sharp decline, often trading below offering price — and then an upturn to a more stable price. And it’s no wonder really, lotsa people wants to get in to IPOs but
Limited of people can — hence huge demand, (kinda like when the first few iPhones were released). Then the initial craze wear of, when everyone’s got one; people start thinking, hmm, maybe bought too late... start selling and then someone smart buy some more, after prices have begun to fall, and fallen some more. It’s just the market finding it’s price, like an auctioneer testing his waters. (“50? 45? 42? 40? 35...? 30...?! 20???? Frickin 10??? 10? 10! OK then, sold for frickin 10 to the man in the money”)
Those business without a lot of warning signs tend to do a lot better too. And research is well rewarded here, since there aren’t too many others doing it. |
